Does the 'brand' of the credit card matter

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rbrebner
rbrebner Posts: 1 Newbie
in Credit cards
Hi,

Does anyone know if having certain credit cards puts off other lenders even if you manage them well ?

For example, would a student credit card or other low limit cards (like credit builder cards) make other bigger lenders less likely to give you a card as they may think your in the lower end of the credit market since you have these types of cards. Or is it purely the mathematics that matters and lenders don't care about the 'brand' all their interested in is your income, your credit utilization %, your payment history/reliability and current situation etc etc.

I'm unsure if I should cancel some of the lesser cards in the hope to get better ones later, or keep them and apply for whats available now.

Anyone able to advise ?
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  • eskbanker
    eskbanker Posts: 31,054 Forumite
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    rbrebner wrote: »
    is it purely the mathematics that matters and lenders don't care about the 'brand' all their interested in is your income, your credit utilization %, your payment history/reliability and current situation etc etc.
    In a word, yes.
  • shiny76
    shiny76 Posts: 548 Forumite
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    Potential lenders do not see who you currently have accoutns with. Just the general information such as amount of credit, payment history etc.

    http://www.experian.co.uk/consumer/questions/askjames248.html
  • StopIt
    StopIt Posts: 1,470 Forumite
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    No.


    Credit usage, especially using it often and paying it off in full every month is the key.


    When a credit search is conducted, they look at your likelihood to pay them back, which is why a history of good payment is so valued. They don't care if your credit card is from Aqua, or Amex. The only reason why there's a market for bad/no credit cards is the criteria for getting them is lower. Once you get a history, or sort out a bad one, your chances of different ones increases.


    The only thing lenders hate is Short Term Lenders. They're a red flag that the person is vulnerable to cash crises and thus a credit risk.

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    rbrebner wrote: »
    Hi,

    Does anyone know if having certain credit cards puts off other lenders even if you manage them well ?

    As they don't see the brand, no.
  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    Agree with ZX81.

    In a word, no. You see which cards you have but other lenders don't. They see the information fields only such as minimum payment, late payment, cash advance, etc. from which they build your financial profile.
  • A4445
    A4445 Posts: 1,103 Forumite
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    StopIt wrote: »


    The only thing lenders hate is Short Term Lenders. They're a red flag that the person is vulnerable to cash crises and thus a credit risk.

    What is short term lenders? im guessing pay day loans?
  • Fingerbobs
    Fingerbobs Posts: 1,640 Forumite
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    StopIt wrote: »
    The only thing lenders hate is Short Term Lenders. They're a red flag that the person is vulnerable to cash crises and thus a credit risk.
    Cash Advances on credit cards also have a negative impact, presumably for similar reasons. This is a phenomenon I have recent personal experience of, sadly.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Fingerbobs wrote: »
    Cash Advances on credit cards also have a negative impact, presumably for similar reasons. This is a phenomenon I have recent personal experience of, sadly.

    Sometimes but not always, it depends on the wider financial situation. Many people may use cash withdrawals for overseas transactions on the right low fee credit cards for example, and most of them won't be impacted by using the cash withdrawal facility.
  • guesswho2000
    guesswho2000 Posts: 1,703 Forumite
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    Fingerbobs wrote: »
    Cash Advances on credit cards also have a negative impact, presumably for similar reasons. This is a phenomenon I have recent personal experience of, sadly.

    Not necessarily, as Bigadaj says, many people use these for cash advances abroad in particular (it's the best way to obtain cash abroad, in fact), and if the entire balance is being cleared each month then it's unlikely to be an issue.

    If, on the other hand, cash advances are being regularly taken, with only minimum payments being made, it could appear as though cash is being withdrawn from the card to make the minimum payment - a big red flag and sign of financial distress.
  • pcman1985
    pcman1985 Posts: 181 Forumite
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    A4445 wrote: »
    What is short term lenders? im guessing pay day loans?

    Correct. Even if they are all paid back on time and in full, it is still a warning flag to many lenders.
    It shows potential lenders that the person could be poor with managing their money.
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