New to Credit Cards (UK)

[willhub]

I've just balance transferred my Natwest CC to MBNA but wanting to keep my Natwest CC for purchases as I'll pay em of within 56 days so still interest free and I get the YourPoints.

My credit rating is "good" at like 560 on Equifax, but I'm not on an electoral role and it's only of use if in a place for 2 years apparently, and I can't go back on it at my parents and apparently not being on it is bad, don't know how I'm supposed to get an "excellent" credit rating.

I was getting declined all over for balance transfers so had to settle for a crappy 16 month @ 0% for 3400.

 

[The_Abyss]

It's not a score, it's simply a record which lenders can use to decide if they wish to offer you credit and on what terms.

It really is as simple as this.

Lenders will score / rate you on their own criteria based on the information presented. Turning a credit score into a rating game doesn't help you or lenders.

 

[Seft]

Nope. No such thing as a credit score.

There most certainly are credit scores: Experian Delphi, Equifax Risk Navigator and Call credit Gauge to name some of the major ones. Underwriters will generally also look at more fundamental properties of your credit file and anything else they know about you. They might not even use the scores. Some certainly do though.à

It doesn't change the fundamentals of building up a solid credit file - just wanted to correct the misconception that widely used scores don't exist.

 

[mattyprice4004]

How come you switched between a few different cards?

Should have been more clear - I have them all, and pay them off in full at the end of every month.

 

[coughs]

Thanks for all the help guys. My friend said that it took him a while to upgrade his credit card to a platinum. What's the benefit of these cards and upgrades? How does upgrading work?

 

[FerretBoy]

The better cards are only available for people with a better credit history. The provide any number of the following: lower interest rates, larger bonuses from purchases (i.e cashback), higher limits and interest free periods

Gold, platinum descriptors are unimportant.

 

[mattyfez]

Gold, platinum descriptors are unimportant.

Yep, maybe it was the case way back when, but it's just marketing.. look at what's best for what you want, interest rate, balance transfer etc etc. MSE has some good info.

For example I have a platinum MBNA card, good for long term 0% balance transfer, not so good interest rate on purchase, and no special perks like cashback etc. Horses for courses.

 

[One]

This thread just sparked me to do an Experian 30 day free trial.

Credit score: 999

Nice.

Will check the finer details now just for satisfaction then cancel the trial

 

[mattyfez]

This thread just sparked me to do an Experian 30 day free trial.

Credit score: 999

Nice.

Will check the finer details now just for satisfaction then cancel the trial

As others said though, there are other factors lenders consider, like available credit v's utilised credit v's income, especially for things like mortgages.

Most lenders have their own secret criteria, so you may have a great history with no missed payments, but if you earn 25k a year, and owe 10k across 2 or 3 credit cards it's not necessarily good - credit scores are more strong indicators rather than scores for credit worthiness.

 

[coughs]

This thread just sparked me to do an Experian 30 day free trial.

Credit score: 999

Nice.

Will check the finer details now just for satisfaction then cancel the trial

How long did that take to achieve? what exactly have you been doing? thanks

 

[dowie]

Nope. No such thing as a credit score.

yes there are, plenty of banks use them internally... there might not be a universal score per say but there are external data providers of credit history and institution's records of their customers, financial details etc.. which get used to create credit scores

 

[nlr]

What is the best mainstream credit card?

Isn't getting Initial spending limit increased and APR decreased offer the same benefits as better mainstream cards?

 

[coughs]

What is the best mainstream credit card?

Isn't getting Initial spending limit increased and APR decreased offer the same benefits as better mainstream cards?

Sorry I can't answer that but out of curiosity once interest free period runs out what do you guys usually do? Close and reapply for the same card?

 

[One]

Depends how you're using the card. I have a credit card solely for the cashback I get on purchases. As I pay off the balance in full via direct debit I never incur interest charges. I simply make money by using it.

 

[Threepwood]

If you want a nice credit score, get into debt and dont repay in full every month. Max it out and pay the interest.

They want to make money from you and people who they don't make money from are not as attractive.

(I would not actually advise this for real but, it is true)

 

[One]

If you want a nice credit score, get into debt and dont repay in full every month. Max it out and pay the interest.

They want to make money from you and people who they don't make money from are not as attractive.

(I would not actually advise this for real but, it is true)

That's not true. The only people that know how much you repay each month is the lender and they already lend to you. Plus they make money on all transactions (hence why small shops still charge a card fee). A potential lender will only see that you haven't gone default or missed any payments, they will also see you have a credit line and you use it responsibly.

 

[Threepwood]

Yes, the lender.

Who will be more than happy to keep giving you extra credit, under the conditions I described.

This, in turn, will increase your credit score.