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Credit search experian - available credit = > £94K !!

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    Credit search experian - available credit = > £94K !!

    Just got a freebie experian credit search and results were that even though my credit score was good, available credit was a bit excessive.

    Anyway, looking at it, I've got 9 credit cards with available credit of over £94K. Scary. Luckily, outstanding is very low indeed - just a few balance transfer at 1.9% or something. About 5 of these cards I aint used in years they're just sitting there with zero balance.

    Had problems getting a loan a few years - looks like this is why. I guess theoretically, I could get a loan then hike cards up to their limit and be screwed. Scary though as to what the minimum payment on £94K would be. (2.5% of £94K = £2350 a month, interest at 1.6%/month approx = £1500 WOW!). Approaching a permie salary for the month there!

    I think I better close a few. Only trouble is even though I can login to most online I cant even find the cards so I dont know the card no.

    Its gotta be done but its reassuring to have it available. Its like I'll have the card there just in case I need it.....
    Last edited by psychocandy; 4 December 2012, 18:59.
    Rhyddid i lofnod psychocandy!!!!

    #2
    Originally posted by psychocandy View Post
    Just got a freebie experian credit search and results were that even though my credit score was good, available credit was a bit excessive.

    Anyway, looking at it, I've got 9 credit cards with available credit of over £94K. Scary. Dont worry outstanding is very low indeed - just a few balance transfer at 1.9% or something. About 5 of these cards I aint used in years they're just sitting there with zero balance.

    Had problems getting a loan a few years - looks like this is why. I guess theoretically, I could get a loan then hike cards up to their limit and be screwed. Scary though as to what the minimum payment on £94K would be. (2.5% of £94K = £2350 a month, interest at 1.6%/month approx = £1500 WOW!). Approaching a permie salary for the month there!

    I think I better close a few. Only trouble is even though I can login to most online I cant even find the cards so I dont know the card no.

    Its gotta be done but its reassuring to have it available. Its like I'll have the card there just in case I need it.....
    Its ok, I wasn't going to
    Originally posted by Stevie Wonder Boy
    I can't see any way to do it can you please advise?

    I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

    Comment


      #3
      Couple of points here:

      I think it's a very good plan to have credit available instantly. You'll also have to have some kind of debt, so they can see you are good at repaying it; it's here you get your high scores, so ironically, someone with 90k of debt they have repaid on time for 5 years, will have a better credit rating than someone who has 90k in their bank, but no credit. I am, occassionally, advised to buy certain shares in companies, and as most of my money is tied up paying off mortgages, it's good to have an available source of finance to take advantage of situations like these.

      The flipside is interest rates; we have a few houses. We renovated one property that needed extensive work (pretty much everything had to be replaced: roof, kitchen, bath, floors, garden, etc, etc) and the costs were high. We took out a loan, and as we already had quite high available credit on the credit cards (we didn't want to use the CC's to do the house), we were deemed as sudenly high risk. The 12 month loan was 9%, but 2 of our CC went up overnight, one from 9.9% to 33.6% and the other from 7.9% to 22.9%. No letter was sent, and I only realised about 6 months later (wife does all the home accounts, or used to), phoned them, they were, both, incredibly rude, so I refused to pay. Put both the accounts in dispute, and eventually they repaid all the extra interest they'd charged.

      Just something to beware of.

      Comment


        #4
        Yeh. Same with me. Credit record is spotless - years of large payments with zero late so I guess its perfect.

        BUT, like I said experian have flagged it as excessive available credit. But I know what you mean, its nice to have it there 'just in case'.

        Must admit I thought CC companies had to tell you if the rates were rising though? Like I said, luckily all mine are on really good balance transfer rates (so low its not worth rushing to pay them off).

        I want to get a new motor and since the loan rates are so cheap I'd rather do this than take a chunk out of my warchest. But I think I'm going to need to sort this avail credit thing first before anyone will touch me!

        BTW - I can see your mistake. Letting the mrs deal with financial stuff! Or does' used to' mean you've now relieved her of the duty? :-)
        Rhyddid i lofnod psychocandy!!!!

        Comment


          #5
          It is highly likely the terms for balance transfers has changed on the old cards and just as likely to be worse than if you get a new one with some introductory bonus.

          Keeping them that long just in case when the goal posts are moving isn't the benefit you think it might be... oh, it's also pretty dumb as well. Getting a surprise like this when you are on verge of buying a house will **** it up royally for you.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by psychocandy View Post
            Yeh. Same with me. Credit record is spotless - years of large payments with zero late so I guess its perfect.

            BUT, like I said experian have flagged it as excessive available credit. But I know what you mean, its nice to have it there 'just in case'.

            Must admit I thought CC companies had to tell you if the rates were rising though? Like I said, luckily all mine are on really good balance transfer rates (so low its not worth rushing to pay them off).

            I want to get a new motor and since the loan rates are so cheap I'd rather do this than take a chunk out of my warchest. But I think I'm going to need to sort this avail credit thing first before anyone will touch me!

            BTW - I can see your mistake. Letting the mrs deal with financial stuff! Or does' used to' mean you've now relieved her of the duty? :-)
            They are meant to let you know of rate changes, which is why they refunded all their charges, plus interest, plus a nominal amount to say sorry

            Wife is still in charge, but I get a weekly summary!

            Comment


              #7
              Originally posted by Old Hack View Post
              They are meant to let you know of rate changes, which is why they refunded all their charges, plus interest, plus a nominal amount to say sorry

              Wife is still in charge, but I get a weekly summary!
              Unfortunately, I wouldn't let my mrs loose with the finances.... She just aint interested....
              Rhyddid i lofnod psychocandy!!!!

              Comment


                #8
                OK. All done. Some credit cards closed and some with limits shaved off. Down to about £50K now.

                Had some weird experiences though. M&S told me I couldn't lower the limit of my card to £1500 because I had a balance of £1200 (2.9% apr - no rush with that one) and that I had to pay off £300 immediately to allow some slack for interest payments etc (WTF - its about £4 a month interest!). Weird.

                Barclaycard were a bit put out that I wanted to close my VISA card with them when I told them I dont really need MAstercard and Visa. In the end, gave me £50 to leave the Visa open with £3000 limit. Oh well, spend that and close anyway.
                Rhyddid i lofnod psychocandy!!!!

                Comment


                  #9
                  Next step is getting a car loan. Any suggestions on contractor-friendly companies before I waste a load of searches?

                  (YES, I know real contractors dont do loans they pay cash).

                  But, dont want to touch warchest. No good having nice car and then find no contract and zero available cash.
                  Current car is knackered so need one. Old, unreliable, 130K, 28mpg (diesel!).

                  Loan seems sensible option at least. Mrs currently driving £300 daewoo matiz which is ok but would prefer a safer car for her and kid also....
                  Rhyddid i lofnod psychocandy!!!!

                  Comment


                    #10
                    Originally posted by psychocandy View Post
                    Next step is getting a car loan. Any suggestions on contractor-friendly companies before I waste a load of searches?

                    (YES, I know real contractors dont do loans they pay cash).

                    But, dont want to touch warchest. No good having nice car and then find no contract and zero available cash.
                    Current car is knackered so need one. Old, unreliable, 130K, 28mpg (diesel!).

                    Loan seems sensible option at least.
                    Mrs currently driving £300 daewoo matiz which is ok but would prefer a safer car for her and kid also....
                    Pay on credit card. Balance transfer the amount to a other card interest free for 18 months and a 2.9 % fee. Then move it again at the end of 18 months. Simples.
                    What happens in General, stays in General.
                    You know what they say about assumptions!

                    Comment

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