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Specifically maxing out the 10k limit month after month.
If you are not planning on paying it back then yes
Short answer: probably not usually, but possibly sometimes.
Long answer: it’s impossible to say, as there is no single credit score in the UK. Most lenders have their own bespoke score, and each of the three big credit reference agencies offers a range of scores targeted at different products and customer types. Some scores may be affected, but most probably won’t be.
Most credit scores will care about credit utilisation, both in absolute terms and as a percentage of available limits. Use of a credit card to repay finance has been available as a characteristic for scorecard builders for about 5 years, IIRC, so only recently rebuilt credit scores could be impacted. However credit scores are typically restricted to about 12 characteristics (this is due to some complex statistical issues around cross-correlationnand over-fitting), so this new characteristic would need to be in the top 12 drivers of default. In most cases, it won’t be – especially for mortgages or loan products aimed at prime borrowers.
I should been clearer that recycling credit with Curve will almost certainly hurt most credit scorea if you use it as a means of delaying payment, thus increasing your total borrowings
I can’t really see how that can be the case unless the underlying credit cards report a missed payment (which is easily avoided by having direct debits set up).
@jj makes very valid points. The approach to granting also credit varies considerably between providers so the notion of a ‘credit score’ is fairly meaningless.
We have seen here the totally different approaches taken eg by Amex vs Barclaycard even though they will use the same credit reference agencies for basic validation/checks. Amex for instance will look at their previous experience with you and other customers with similar characteristics in their tiny market segment and will also, unusually, consider household income/knowledge of family (eg giving cards with generous limits to students) which would provide no legal protection if things go wrong, but is something from which they draw comfort. Barclaycard won’t consider household income, has strong views about absolute amounts of credit and has by far the largest unsecured credit database in the country so uses all sorts of metrics such that many people get refused, potentially for BC’s experience with others. Neither approach is wrong, it’s just different.
Specifically re Curve max usage, also as @jj says it depends how you use it and it may generally not get picked up, but if you say make a mortgage or loan application, and there is a manual assessment of your creditworthiness/ability to repay, if you are churning £120k pa through Curve and earn £150k gross it will inevitably raise unhelpful questions about your approach to financial products.
I can’t really see how that can be the case unless the underlying credit cards report a missed payment (which is easily avoided by having direct debits set up).
When a credit score is being built, the analysts will look for statistical links between a range metrics and default experience. They will typically look at things like % credit utilisation and £ borrowed on credit cards as a % of income, and those measures are almost always strongly correlated with credit risk. Both of those metrics could worsen if Curve is used to delay paying credit by rolling money from one card to another.
@Ash the question you need to answer for yourself is will you leave the 10k as unpaid on the underlying credit card for a length of time or will you clear the underlying card same day?
If the objective is purely to earn points from spend that wouldn’t otherwise earn points I’d recommend paying down ASAP, that way the credit utilisation is less likely to show on your credit report. Pay off same day as the transaction it won’t show up at all.
Recycled over £1m in a year before they put in the monthly £10k limit.
Had KYC checks with HSBC, NS&I and Curve, but was open and honest and kept all my accounts. Although I did get warned.Didn’t seem to hamper getting a new mortgage or several credit cards over that period.
@Ash the question you need to answer for yourself is will you leave the 10k as unpaid on the underlying credit card for a length of time or will you clear the underlying card same day?
If the objective is purely to earn points from spend that wouldn’t otherwise earn points I’d recommend paying down ASAP, that way the credit utilisation is less likely to show on your credit report. Pay off same day as the transaction it won’t show up at all.
I’m finding Barclaycard takes a day or two to register the Avios after the spend, if you pay off before it’s clocked up the Avios there is risk it will not register at all ?
No – the spend has still registered if it’s showing on the balance.
Re fronted – OH got Curve metal recently and 90% of fronted transactions are being declined. It’s switched on and all payments are within the permitted range and have been successful previously. Is it likely to resolve itself? Curve support is just tumbleweed.
No – the spend has still registered if it’s showing on the balance.
Re fronted – OH got Curve metal recently and 90% of fronted transactions are being declined. It’s switched on and all payments are within the permitted range and have been successful previously. Is it likely to resolve itself? Curve support is just tumbleweed.
Suggestions only: Make sure the correct card is selected and it is inputted in correctly (had it been renewed with new expiry date for example) then try turning fronted off and on. Maybe even try uninstalling and reinstalling the app?
Now you’re sounding like the Curve chat bot, lol. We tried deleting and reinstalling and it created a duplicate account which then had to be got rid of! It’s so easy, I said, the process is seamless, I said …
They should have made their ad campaign….
Curve. Nothing is straight forward.
They should have made their ad campaign….
Curve. Nothing is straight forward.
😀
I have both VA and Barclaycard Avios credit cards. What’s to stop me bouncing £10k backwards and forwards between the two cards each month after the statement is produced using Curve Fronted (I have the metal card) to keep earning the extra points? I have sufficient credit limit on both cards.
You answered your own question in the other thread you just posted on. Cash advance fees will kill any points benefit.
PS you really want to change you username so it’s not your email address on a public forum.
Now you’re sounding like the Curve chat bot, lol. We tried deleting and reinstalling and it created a duplicate account which then had to be got rid of! It’s so easy, I said, the process is seamless, I said …
Has the residence address changed since obtaining curve? It was a huge problem for me as underlying cards had a different address and their system kept rejecting all payments.
@SteveJ they are two different questions as this was to do with paying off a credit card via Curve onto another credit card, which some suggest you can do without card fees, this other thread was about fees specific to a vet merchant code.
Thanks for the heads up re my username. Any ideas how I change it?
VA charges cash advance fees for a vet and you expect them to not charge them for paying another credit card?
Virgin Money will now be using your email address to find your account to put you in the new banking rejection category called ‘Farage’. 😂
Thanks for the heads up re my username. Any ideas how I change it?
Top right of the page: ACCOUNT, then EDIT
Cannot change user name, it’s not editable
Cannot change user name, it’s not editable
Right you are, would need to email @Rob or @Rhys
Done! Many thanks all including @Rhys
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