Volkswagen Mark IV Forum banner
1 - 20 of 37 Posts

·
Registered
Joined
·
6,881 Posts
Discussion Starter · #1 ·
Just rang up to cancel my credit card, it hasn't had a balance on it for over a year, so just thought it would be easier to get rid of it.

The person on the phone said 'are you sure you want to cancel sir, you have a platinum card, we don't give many of those out'.

What on earth does that mean!? All it says on it is 'Tesco, Finest Platinum'.

Do I get some benefits or something I don't know about? I said I would think about it and she's lowered my rate, but I don't use it as I use my Egg Money card as I get 1% cashback on it. Is platinum good for something? I just thought it was cus it was a silver card?!

Any help? Not really very clue'd up on this and the Tesco website does not mention a platinum card, so can't see what it offers me, if anything over their usual cards?
 

·
Registered
Joined
·
6,881 Posts
Discussion Starter · #3 ·
I dont think its something special. I have a barclays platinum, and thats the first credit card i have ever owned, so they cannot be rare.

Have a butchers on http://www.moneysavingexpert.com/ you may find some info on there.
That's what I thought, nothing special and she was trying to just keep me. It has a stupid 20k limit on it. Therefore, I have avaliable debt of 20k on one card so just thought I would get rid of it as it does effect your credit report apparently.
 

·
Registered
Joined
·
5,145 Posts
I thought it only effected your credit rating if you borrowed a certain amount and dont manage to payback the minimum monthly amount. Dont think it effects your rating if that is the available amount. Unless if someone else can correct me......

Anyways, you shouldnt need any credit cards, you've got 67K in your account! [;)]
 

·
Registered
Joined
·
6,881 Posts
Discussion Starter · #5 ·
I thought it only effected your credit rating if you borrowed a certain amount and dont manage to payback the minimum monthly amount. Dont think it effects your rating if that is the available amount. Unless if someone else can correct me......

Anyways, you shouldnt need any credit cards, you've got 67K in your account! [;)]
LOL credit cards are extremely useful, offer a lot of benefits over paying cash, and I didnt always have that money! I've done a bit of info and I get 3 clubcard points for every £2 spent in Tesco's if I use it. Doh! So maybe that's what she meant. Do all my shopping in tesco's and always use my egg card. So worth keeping and using in there, if I knew my pin.

Trying to figure out if 3 points per £2 is better than 1% on my egg card. Brain hurts....done it...

£100 spend on egg card in tescos = £1
£100 spent on tesco card in tescos = £1.50 in clubcard vouchers which means £7 in clubcard deals (roughly)

Woohoo....will keep it!!

I think avaliable debt does make a difference. As that's 'potential' debt. My potential debt on credit cards is roughly 50k. (got 5 of them) So I spose someone seeing that could use it against you?
 

·
Registered
Joined
·
5,145 Posts
I thought it only effected your credit rating if you borrowed a certain amount and dont manage to payback the minimum monthly amount. Dont think it effects your rating if that is the available amount. Unless if someone else can correct me......

Anyways, you shouldnt need any credit cards, you've got 67K in your account! [;)]
Trying to figure out if 3 points per £2 is better than 1% on my egg card. Brain hurts....done it...

£100 spend on egg card in tescos = £1
£100 spent on tesco card in tescos = £1.50 in clubcard vouchers which means £7 in clubcard deals (roughly)
WAY too many calculations for me! [:S]
 

·
Registered
Joined
·
6,881 Posts
Discussion Starter · #7 ·
Well basically spend £100 in tesco's and get roughly £7 back in vouchers (I would go for MFI vouchers if someone would answer my earlier post!). That's if I used my tesco card, plus £1 for using the clubcard which is roughly £4 in MFI vouchers.

So, for every £100 I spend in Tesco's, which is easy really, £11 worth of MFI vouchers. You can use clubcard deals for loads of things, like holidays etc. I don't know whether you can save them up though.

I could spend £300 in tesco's easily in a month. Food and Petrol. So thats roughly again £33 of MFI vouchers per month. Make that tesco spend 500 quid a month when I get the R32 for the extra fuel! Plus, the 5p off vouchers too...No wonder tesco's are taking over.

Plus, I noticed I get 1 point for every £2 I spend everywhere else. Again, spend 2k a month easily on my egg card as I use it for business purchases, often buy dell PC's etc, which are not for me and then invoice. So theres another £10 in clubcard points making a £40 MFI voucher each month.

Which means, a potential of over £70 worth of MFI vouchers each month. Just for using a different credit card. All that on the Egg card would be about £25.

Theres loads of clubcard deals, just need to know know whether I can save them up or whether they have a cut off date.

Theres things like National Van and Car rental, £10 in clubard points gives you £40 towards a van or car rental. Air miles, holidays, days out, car servicing etc etc
 

·
Registered
Joined
·
6,213 Posts
I think I'm right in saying that it will actually go against your credit report if you close a credit card account?? Better to leave it dormant?

As for platinum, they give them out willy nilly. It means jack in reality, just makes people want to let everyone know how rich they apparently are. In reality, the more they use it, the more the lender stands to make...

I think the best way to bunk up your credit is use it, and pay off more of the balance than the minimum, but not the whole amount for a bit.

Credit cards are dangerous anyway. I have seen a few people do the 'Viva Las Vegas' on borrowed money only to end up 5 figures in debt very quickly...

I only have one, and its only for booking hols, buying electrical goods and buying online. Its usually paid off in full each statement bar a nominal balance.
 

·
Super Moderator
Joined
·
15,990 Posts
it won't go "against" you to close it, no. The report will just show that you had borrowing with a company that is paid off and closed. Its true that in order to have a good CR history, you need to have had to borrowings at some stage in ordr to prove that you are able to pay them off on time and in full.

I'm not sure about your "best way" to use a CR card either - if you borrow £1000 on it and decide to pay off £995, you will get charged interest on the £1000 that you borrowed - not the £5 that's left. You wouldn't think so, but its the way the companies sting you. And, most probably ( if you don't use the cars again ), your next statement will show a £5 balance plus interest. So you pay that off in full, thinking that should clear it. Except it doesn't - because interest is being charged between the time the statement was produced and the time your payment hits and clears the account. So there will be interest on the next statement too.

Pay it off in full - and time the payments so they are required just after pay day not before.
 

·
Registered
Joined
·
4,686 Posts
I think avaliable debt does make a difference. As that's 'potential' debt. My potential debt on credit cards is roughly 50k. (got 5 of them) So I spose someone seeing that could use it against you?
Nope. When you apply for credit, in addition to your earnings they look at your record to see

A) How much you owe overall and for how long

B) How good you are at repayments

And as you may already know, for some reason mortgage aopplications ignore credit card debt (probably because they wouldn't get the approvals through if they didn't!). If you pay on time, every time for everything, you build up lots of good history. If you are late or default, it goes down. Also as I understand it, every time you apply for credit, a search is registered on your account. It doesn't give an outcome though, so if you have 5 searches in a month, even if all were approved, your score starts to drop as it looks like either your borrowing alot very quickly or being turned down. If you get to this point, its best to leave it 3-6 months to let it recover.

And no, Platinum is meaningless now; its like Gold, everyones got them. I think Black is the one that means something these days
 

·
Registered
Joined
·
2,259 Posts
The more credit cards you have the lower credit score you get. As I understand it...

Gold cards used to mean something but I think even my pet cat qualifies for one nowadays! Platinum's the same. The card you want it AMEX black, invite only and no limit...
 

·
Registered
Joined
·
2,174 Posts
As for platinum, they give them out willy nilly. It means jack in reality, just makes people want to let everyone know how rich they apparently are. In reality, the more they use it, the more the lender stands to make...
I used to have a normal Tesco credit card and they sent me a "Finest" platinum card out of the blue but apart from extra Clubcard points if I use it in Tesco's (which I don't) I couldn't see what the difference was to my old one.
 

·
Registered
Joined
·
6,213 Posts
And as you may already know, for some reason mortgage aopplications ignore credit card debt (probably because they wouldn't get the approvals through if they didn't!)
Not true. Our mortgage lender insisted that me and the missus sorted ALL our debts, ie credit cards, her store cards and her loan. Apparently they were within their right to do a credit check and check our history, and could name all the people we owed and what we owed, and did in a letter. Which is fair enough, as they were lending a substantial amount of money. The mortgage offer was based on the provision that at the point of completion, all said debts were zero, otherwise 'the deal was off' as it were. Not a problem, the debts were nominal, ie usual monthly spending on credit cards, small amount on a store card and about £400 left on a loan, which isnt exactly a horror story. All cleared no problem. The provider was a big name high street lender too not a dodgyloans4U jobbie.

What worries me is that people go into home ownership deep in debt, which in my mind is madness, and moreso, noone is that worried. Bearing in mind, to get a mortgage now, you will be looking at anything up to 50% of your joint income, maybe more? Then you have bills, insurances, maintainance, repairs and decorating a house. Then you have the cars, the pets, maybe the kids, the food, the holidays, the luxuries, the essentials, and of course the hand you are dealt in the future.

Put on top of that a minimum monthly repayment on one or a number of cards that may be hundreds of pounds. Very worrying if you ask me....

I wouldnt dream of going into a mortgage anymore than a few hundred quid in debt!! Yet lenders seem prepared to lend people whatever they want, regardless of how much they already owe. And people are silly enough to go into it with huge debt. Going into home ownership with 5 figures of debt to sort on top???!!!

No wonder so many people are getting repossessed. Personally, I think the lenders are inviting financial trouble, knowing damn well that they are never going to lose out of a repossession....
 

·
Registered
Joined
·
4,686 Posts
And as you may already know, for some reason mortgage aopplications ignore credit card debt (probably because they wouldn't get the approvals through if they didn't!)
Not true. Our mortgage lender insisted that me and the missus sorted ALL our debts, What worries me is that people go into home ownership deep in debt, which in my mind is madness
Well they didn't for me or several friends...interesting.

As for the debt, although I agree there are far too many people out their over stretching themselves, I don't agree that lenders convince people to take a big mortgage - people are free to make their own mind up. Card debts are irrelevent if you can afford them. In my experience lenders are incredibly conservative with what they will lend these days (almost annoyingly so) due to increased monitoring, gone are the 7-11x multipliers of the early 00s. You have to do a key facts with a broker / advisor to make sure you understand what you are doing...nothing frustrates me more than these programs showing people massively in debt and blaming the bank - you agreed to borrowed it!

Don't forget if you don't own, you are renting, unless you have some kind of deal living at home. So if you spend £500-£700 a month on rent (or loads more, depending where you live) you might as well put that into your own home? I know a couple moving to Australia, they had £12k of card debts - not earth shattering by any means. They bought a 1 bed flat for £132k, and have just sold it (18 months later) for £163k. They are now jetting off to Aus with £19k in the bank.

As a side note, before the advent of 100-130% mortgages (which are just 95% mortgages with a personal loan for the rest) putting deposits on credit cards was common place....
 

·
Registered
Joined
·
6,881 Posts
Discussion Starter · #20 ·
I had to sell both my cars to be 'allowed' to have the mortgage and get rid of credit card debt. The only debt they allowed was their own loan, funny that. Wouldnt allow anything else, or the mortgage was a no.

That was halifax.
 
1 - 20 of 37 Posts
Top