Hi,
If I move around 0% credit cards to keep the maximum captial paid down on my mortage, how can I expect my credit score to be affected?
I know some people do it, but are there any future consequences? For example if I at a later date want to increase a mortgage when I move.
Thanks Andy
I have been doing that over the past couple of years and recently had a credit card application declined for the first time. I had a look at my credit reference online and found that CC companies are not always very prompt in updating the file, so mine looked as if a few cards with fairly high balances were still active which have actually been paid off. I also found that a credit account I paid off over 12 months ago was showing as repaid only last month.
If I were a lending institution I probably wouldn't provide credit if I saw a similar credit record to mine. Remember the records do not show why or how the balances were repaid, they just show the potential lender a great deal of short term activity.
In my experience mortgage lenders are rather more robust with their lending - the security of bricks and mortar can make up for a little negativity in a credit report which might make another lender rather nervous.
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