AIBU to ask how credit ratings work?

[Alrighteo]

I've two credit cards, one with a high interest rate, 23% or something.
The other one is lower at about 21%.
I only got them to increase my credit rating.

Now, they keep increasing my credit limit but I can't get any other credit card?
Is there a way like olden days where you could walk into a bank and ask for your limit on A card to be transferred to them - and they would open up a credit card account for you?
Or am I away with the fairies?
So say I shut down both current cards, but transfer to a lower interest rate cc?

Hi Alrighteo,

If you're paying off in full each month then you just keep the two cards going and the balance clear.

If there's some money owing on the more expensive card then you can see whether the other card with the lower APR is offering 'Balance Transfer' offers (e.g. promotional offers 0%) or whether you can do a routine balance transfer. It can depend on the type of card as you can get 'Balance Transfer' and 'Purchase' credit cards. This can all be done online.

You can check your credit rating with one of the websites like 'Experian' or by going on 'Moneysavingexperts MSE Credit Club' and see whether there are any cards that you are eligible for without it affecting your credit rating (whereas applying and being rejected for cards does lower your credit rating).

If you can get a lower rate 'Balance transfer' credit card with a 0% promotional period (and a large enough balance) then you can just transfer the debt from both cards to the 0% card.

Thanks for the reply.

1. Both balances are paid off in full monthly HOWEVER
2. This month I will be putting about 700 on the credit card.
3. No point looking for a balance transfer yet as no balance to transfer
4. I've applied for another card out of curiosity, and was declined.
5. I'm wondering whether I could actually go into a bank and transfer the full amount of credit (or even just one), to a zero interest rate card for a time.
6. I understand I'm not the most lucrative customer

The lower the risk you are seen to be, the more likely you are to get a 0% card. Credit limits are usually lower.

It's a balance between building a solid credit rating by using credit, and not using too much credit!

I'm with Money saving Exoert- their credit scorer is so easy it's unbelievable and you get monthly updates with a synopsis of why your rating has gone up or down.

On point 2 above, I won't be in a position to pay it off - it will be paid off at the rate of 100 a month, so I will incur interest.