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Credit Cards?


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Old 23-02-2004, 10:08 PM   #1
Mossop
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Question Credit Cards?

Does changing your credit card over to a 0% APR cause to to get bad credit ??

I was having a discussion at work about loans and their APR's and I mentioned that if I am going for a low amount loan I'd probably get it on a 0% credit card and keep switching it to the next card to avoid paying intrest. One of the guys said that this does affect your credit rating just like too many "Agreement and Principals" whilst going for a mortgage.


Does anyone know if this is true??
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Old 24-02-2004, 09:02 AM   #2
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Interesting question actually...

Unfortunately I don't know the answer, but will be keen to see what the outcome is, as I always transfer balances to O% cards to keep from paying interest. I mean, why pay more for something than it's worth...?
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Old 24-02-2004, 03:52 PM   #3
mcamp999
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Hi

Every time you apply for a credit card, it is recorded as a search against your name and address. This can affect your credit rating as companies that are checking your credit records will see that you keep searching for credit.
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Old 24-02-2004, 05:10 PM   #4
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This confuses me.

So in order to get a good credit rating, you should run up your existing credit cards and pay plenty of interest, (making the loan sharks richer) just as long as you don't miss payments?
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Old 24-02-2004, 06:18 PM   #5
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Quote:
Originally posted by edmonsta
This confuses me.

So in order to get a good credit rating, you should run up your existing credit cards and pay plenty of interest, (making the loan sharks richer) just as long as you don't miss payments?
It's the price we pay for using money that is not ours......
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Old 24-02-2004, 08:44 PM   #6
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Quote:
Originally posted by Pam M
It's the price we pay for using money that is not ours......
Hmm, you're right, I guess I just have a problem with being given a "bad credit rating" when I hardly ever use my credit cards and NEVER have bad debts, never pay interest for anything (by paying things before interest is due) and only every now again apply for a 6 month interest free card to pay something off, under the false impression that this would actually help my credit rating...


Does that make sense?
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Old 28-02-2004, 12:17 PM   #7
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Mmmmmm, someone has just told me that moving credit cards doesn't affect you credit status as long as you are paying off your debt legitimately, but if you are trying to move your debt over to different credit cards to pay off another credit card provider then it will affect your credit rating. But I guess you have to be paying the minimum payments, otherwise you will get done.

think I got the story right.....anyway something like that
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Old 02-03-2004, 02:13 PM   #8
sue w
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Quote:
Originally posted by mcamp999
Hi

Every time you apply for a credit card, it is recorded as a search against your name and address. This can affect your credit rating as companies that are checking your credit records will see that you keep searching for credit.
Is this on your credit record permanently or does it fall away after a certain time???
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Old 02-03-2004, 04:28 PM   #9
mcamp999
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Quote:
Originally posted by sue w
Is this on your credit record permanently or does it fall away after a certain time???
Usually 5 years.

But everyone can see a copy of their credit files http://www.experian.co.uk/ and http://www.equifax.co.uk/ will give you a copy of your credit files for a nominal fee of £2.00. They are the main two companies that everyone uses. Get both, as the records can be different.
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Old 02-03-2004, 04:41 PM   #10
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Mal's point about the register of searches is the main issue.

Everytime one applies for any kind of credit, even successfully, a 'footprint' is created in your credit file that records that your credit file was searched. In this way companies that are considering giving you credit (e.g. when applying for a mortgage, getting HP on a new tele or whatever) can see how often you have applied for credit. This information then remains in your file for 5 years.

Payment history is a big factor, if you have never run up any debts or incurred County Court Judgements and have a good payment history on your loans and credit cards (these payment histories are supplied to the credit reference agencies every month) then you shouldn't have a problem.

Also the suggestion to get a copy of your credit file every couple of years is a very good one. I obtained mine a few years ago and found details of an unpaid loan, even though I had no unpaid loans! Took a bit of effort to sort it out but eventually they were forced to confess it was an error and remove the details.
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