0% running out, new credit card?

kateyleah · 25 April 2018 at 1:24PM

I was after a bit of advice. I've just purchased a new house on a mortgage with my partner. He has bad credit and so the mortgage will likely affect my credit rating although it hasn't yet even though we have completed on the house.

My 0% credit card is going to run out in September and i'm not really up for paying interest on a CC having always had 0% on purchases. My question is should I attempt to apply for a new credit card now that my credit rating is still ok and ditch the old one or is it likely to be rejected because i've literally just taken out a bigger mortgage. Or shall I wait until we can get credit up to a better state and just make sure credit card is paid back in full if we ever use it?

I'm very risk averse so I don't want to do anything that would cause me issues, however I would prefer to have 0% CC just in case I need to use it.

K

[Deleted User] · 25 April 2018 at 1:27PM

If you've not yet completed on your mortgage, don't apply for any new credit until you've moved in.

kateyleah · 25 April 2018 at 1:42PM

I have completed and moved in.

[Deleted User] · 25 April 2018 at 1:44PM

Then I would apply now. If rejected, leave it two or three months before trying again.

Lenders may want to see some stability of a few mortgage payments, and make sure that you get on the ER as soon as you can, although this may take some time to filter through to the CRAs. But a search or two now is no big deal.

kateyleah · 25 April 2018 at 3:59PM

Great thanks. Yes on ER already (I wanted to get on in time to vote :-))

I'll give it a go thank you for your help.

Dobbibill · 25 April 2018 at 4:53PM

If you don't have a balance on your CC and are in a position to pay back in full then there's no rush to get a 0% purchases card unless you have a large purchase on the horizon.

Paying back in full every month will mean you don't incur interest anyway.

destroycarthage · 25 April 2018 at 9:08PM

That zero percent sure comes in handy. Helped me get back on top of my debt. Kinda hard paying $200 minimum balance then over $100 in interest. I'd say the answer has all to do with how much of a balance you carry each month. None? Keep the card. Over 13% and up? Look for a new options and do a balance transfer. Good luck my friend

kateyleah · 26 April 2018 at 1:05PM

Yeah I get that. My concern is that if something urgent comes up (a new washing machine, boiler repairs etc) I'll probably end up using the CC as I don't have much in savings and usually I pay big purchases off over a few months. So i'd rather not have to pay interest.

Also, my worry is that in a month or so my credit rating will fall because i'll be associated with my partner who has poor credit and so I won't be able to get the 0%,=.

I might give it a go and if I get rejected leave it for a year or so.

thanks for your help.

K

[Deleted User] · 26 April 2018 at 1:09PM

Remember you don't have a credit rating - at least, not one you will ever see. You only have history.

An association with some with a poor history is unlikely to be a major issue for a credit card in itself.

kateyleah · 26 April 2018 at 1:25PM

Ok thanks Zx81. So do you think I will be ok to apply in a few months time then once I am linked with my partner?

[Deleted User] · 26 April 2018 at 1:28PM

Certainly no harm in trying.

0% running out, new credit card?

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