Your #1 Credit Card Mistake

CannyJock

ViHan wrote: »

Ohh no no! I made the mistake! I just wish in hindsight that I had never bothered in the first place with the cards. One maybe but I was younger and stupid and I hadn't a clue how to be responsible for my own debt. I learned the hard way and I won't ever be in the situation where I owe thousands on unsecured debt again.

Now you've come out the other side, would stoozing be too much temptation for you? I'm responsibly up to my armpits in "debt" on stoozed credit cards and it's making me a tidy sum of interest each month. It proves the old adage that it's easier to get debt when you don't need it.

If you can be drawn to the dark side, look at the Virgin Money card as a first easy stooze

King_Weasel

nwlondon wrote: »

Im for banning alcohol like KING WEASEL as well if you must know so I dont just pick on "credit" cards

Well, at least you're consistent, nwlondon, but please count me out.

daisydog_3

How is it possible to stooze 107K, sorry maybe niaive but I thought most CC companies only give 5K on BT and its hard to get >4 cards? Where did you put it to get the best benefits>

noh

daisydog wrote: »

How is it possible to stooze 107K, sorry maybe niaive but I thought most CC companies only give 5K on BT and its hard to get >4 cards? Where did you put it to get the best benefits>

It depends on the individual circumstances. Last week I obtained 0% offers on more than £38000. 15k from egg 15k from Virgin 8k from Halifax and an as yet unknown amount from Abbey.

Nigel

daisydog_3

How will you use this best Noh? I've never defaulted on anything, have a mortgage, which I understand is a secure loan as opposed to, well the opposite! But bought a sofa on 0% for 12 month last yr then paid in full.... Yet, I got the Egg card in Dec then Barclaycard in feb, and both only offered 2,000. Hence, my shock at the 107K figure

Paul_Herring

debtisslavery wrote: »

Looking back, what would you say the single most grievous misuse, abuse or lapse in judgment with your credit card was?

Mine would have to be getting my first card in college, before I had any kind of stable employment (followed closely by the dreaded Cash Advance!)

Before the 'lightbulb moment' mine was treating the credit cards like a bank account; as a source of cash.

nwlondon wrote: »

I'd Say getting a credit card in the first place. I feel like standing for government and getting credit cards completly banned?!!

Anyone else with me?

Not a chance in hell. How is banning cards because some people get in debt fair on those who don't?

I agree with the alcohol analogy, or if you prefer, "ban all religion" because of what the exteemists get up to.

CannyJock

daisydog wrote: »

How will you use this best Noh? I've never defaulted on anything, have a mortgage, which I understand is a secure loan as opposed to, well the opposite! But bought a sofa on 0% for 12 month last yr then paid in full.... Yet, I got the Egg card in Dec then Barclaycard in feb, and both only offered 2,000. Hence, my shock at the 107K figure

Without going into specialised credit cards with unlimited credit limits, general rule of thumb is that maximum unsecured loan is £ 25,000.

But no reason why you can't get multiple sources of credit, each with their own limits

On the sofa front, did you pay it in full following their repayment plan or did you pay for it in full before the 12 month date?

MLC's credit limit will also be based on his credit rating and years of experience on ways of maximising this - he didn't get this as a new applicant to the credit market

daisydog_3

Paid off the sofa at 10 months to be sure and no other credit. I got a computer from dixons also 0% for 12 months which is up next Jan, and changed mortgage provider for better rate in Jan so maybe too many hits at the same time, better have a look at credit score maybe. I was going to transfer some premium bonds and the barclaycard BT into the A & L 10% ISA, seems like a safe option. Theres a lot of knowledge on these forums worth learning about hey? Any advice on maximising what I have at the moment without denting credit score further?

noh

MLC's credit limit will also be based on his credit rating and years of experience on ways of maximising this - he didn't get this as a new applicant to the credit market

Thats the key thing, credit limits are based partly on the individuals credit rating. My credit reports run to about 10 pages with no late payments. I have been stoozing for at least 8 years and this appears to have strengthened my credit rating.
In the last couple of years it has been my strategy to apply for 5 or 6 cards in a short space of time.

Nigel

daisydog_3

Well I know I havent had 5-6 hits so maybe thats not the problem, just have to build up credit score perhaps. Thanks so much Noh and CannyJock helpful info, this isn't my forte but will be sure to offer useful support in other areas