[Nude_Lewd_Man]

Quote:

Originally Posted by Chuckiechan

However, I think it adversely affects your credit score.

Hi,

Unless you guys have a completely different credit scoring system to what we have over here (in the Land Of Eng) then it won't affect your credit rating.

Here, ratings are based on whether you missed a payment, or otherwise defaulted on paying them (towards) money that was owed on credit. It is based on the total number, so if in the third month you didn't pay (on time) then paid up in the fourth, missed the fifth and paid the balance off in the sixth it would look like this:

001010

What they then do is total up the scores for all of your credit agreements and give a total. The total for the one account I demonstrated above would be 2 (1+1=2) and use that to determine your overall rating.

Personally, I have about 6 credit cards: one is purely for when I get fuel (for the bike and car) and any other motoring cost; another is used solely to get the shopping each week; another is used (by my wife) to get her travel-card (£295 per month) and any other high priced items that we need regularly; and two of the others are being used to pay back for the new bike I bought last month. We also have one (MotherCare) store-card that we use to get clothes, toys, shoes, et cetera for our daughter.

Apart from the two with the bike balance on, they are all paid back every month. This means we only pay back what we have used, and don't get charged for the card....