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    credit card could affect credit rating?

    I took out 10,000 on 0% interest - interest will start somewhere in 2019...

    Originally virgin set me up paying them back at £90 but calculating it by 2019 I would still owe them a nice amount which I would pay interest on.

    So I moved it up around £350 per month... Thinking if I pay back more, my credit rating would work out better... (and I would have paid back the 10k in time)

    My question is - if I go back to paying £90 per month would it affect my credit score? What is the best way to do this...

    9 Comments

    Do you know what your credit score is at the minute?

    pay the minimum and put the rest in an isa/savings/whatever

    your credit score is worked out from how much credit you already have so if you already have 10k credit, whether you use it or not, will have already affected your credit score. I had a few of these and it affected my credit score badly but it was worthwhile as I got interest free loans for 6 months, during which time i put the 10k into a savings account earning interest

    The only way (I think) your payments on outstanding credit would affect your score is if you miss them.

    if 10k is close to the credit limit of the card, yes it will negatively affect your credit rating

    As long as you show that you are paying off the debt you should be ok, even if you go over the zero interest period it'll be ok. Your credit rating will improve once you pay it off.

    Original Poster

    HondaLad

    Do you know what your credit score is at the minute?



    No... I have a mortgage and this credit card, don't want there to be a problem when I remortgage in 2 years time...


    Thanks to everyone that answered... Everyone seems to have slightly different answers I'm still unsure.

    Your rating will be based on amount of credit vs how much you have used (and a load of other stuff). So if you have 10k in available credit and have used 10k this will have a negative effect on your score, if you have 10k available but have only used 5 you will have a better credit rating....simples

    3ak

    No... I have a mortgage and this credit card, don't want there to be a … No... I have a mortgage and this credit card, don't want there to be a problem when I remortgage in 2 years time...Thanks to everyone that answered... Everyone seems to have slightly different answers I'm still unsure.



    ​Why not check it for free either with clearscore.com or moneysavingexpert.com do one now. I signed up with clearscore and it's really good, they try to sell you loans and credit cards to make their money but they're easy to ignore. The rates are worse that what you could get elsewhere anyway.
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