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.
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
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.