do 0% cards crucify your credit rating?

Hate · 28 Apr 2006 at 17:06

here is the story...

I've only had my student mastercard since I was 18 (24 now) and hardly used it.
In order to help fund my next car purchase, I got a 0% EGG card 2 months ago and put £2000 on it.

This is now being paid off at rates of £500 per month until its closed. The card has now been cut up.

Now, i'm moving house in a couple of months, my current cashflow would look a bit wobbly after paying deposits, rent and buying furnature.

If I were to get a 2nd 0% card (i only need £1000 or so) in a couple of months (after the egg balance had cleared) in order to help me move and buy furnature would my credit rating go through the floor?

I indend to pay the card off completely within 3 months and cut it up like i did my egg...

Pebbles · 28 Apr 2006 at 17:09

It doesnt matter what the interest rate is, it'a all about you making the repayments. From what you've said you'll have no problems and it will improve your credit rating.

Matblack · 28 Apr 2006 at 17:11

Pebbles said:
It doesnt matter what the interest rate is, it'a all about you making the repayments. From what you've said you'll have no problems and it will improve your credit rating.

[nods]

MB

PinkPig · 28 Apr 2006 at 17:16

A 0% card doesn't do anything terrible to your credit rating. The only risk is that if you apply for new cards too regularly it can count against you, but you'd have to apply for credit at least every 6 months or so for this to be even a small issue.

Hate · 28 Apr 2006 at 17:18

yeah, this would be the last time in a long time that I would do it, then again, £1000 over 3 months on 14%APR isn't too painful either...

I can afford the lump payment, I just rather wouldn't incase something comes up!

big_white_dog84 · 28 Apr 2006 at 17:32

Maybe just go for a loan instead? Might seem like less of a risky panicker to future credit people.

Hate · 28 Apr 2006 at 17:33

i dont know anyone that will loan a grand over 3 months, and if they do their interest is gonna be about 15%, same as my empty mastercard

big_white_dog84 · 28 Apr 2006 at 17:45

Fair enough. You seem to know what you are talking about so there shouldn't be any problems.

Admiral Huddy · 28 Apr 2006 at 17:47

age, earnings, sex, the number of card you have, total facility limits, payments history, loans, savings, spending behaviour etc all contibute to your rating..

Even people living in your house, family members or otherwise have an impact. Believe me, i know :rolleyes:

Hate said:
I indend to pay the card off completely within 3 months and cut it up like i did my egg...

good lad

remeber to close it afterwards

Wyrdo · 28 Apr 2006 at 17:52

http://forums.overclockers.co.uk/showthread.php?t=17566238

starscream · 28 Apr 2006 at 17:55

In this instance, a 0% credit card isn't going to damage your credit rating at all and is obviously going to be the cheapest option as long as you stick to the repayment schedule you are saying.

Having said all that, having a 0% credit card will very soon actually potentially damage your credit rating because in an absolutely crazy piece of legislation, the govt have allowed your interest rate to be shown on your credit reports. That means that lenders will be much less likely to be willing to lend to people who are bouncing their debts round on 0% cards, or "stoozing". It is a really bad thing for consumers that this is happening.

Hate · 28 Apr 2006 at 18:07

I think I will shove it all on my student mastercard, I rarely use it and an extra 50 or so quid charged won't do me any harm over 3-4 months.

plus it saves the hassle of applying for another card, and might even make my rating improve cause I would have been paying interest.

I just don't like seeing minus numbers on my online banking >_<