What do you tell financial companies your status is?

[VectraMan]

I think I put "Company Director" in for my car insurance. Which is true, I am.

Last time I was at the bank I noticed on the screen they still had me down as working for my old permie employer (from 5 years ago), and my old permie salary.

I thought it best not to say anything.

[Mr.Whippy]

In my case I keep my commitments small, maintain several fair limit credit cards by paying them off every month

not really true, you will have no credit history to speak of so will be viewed as higher risk than someone who has made many on time credit payments, so you won't get the best offer even if you have 100k in your bank account

TykeMerc does pay "many on time" payments... the balance in full, every month by the sound of it... Which will be better for his credit history than making the minimum payment every month.

[jmo21]

We carry about £0-4000 in debt year round on 0% purchase for X month credit cards, but the money that goes on them is every day stuff that we would be spending anyway.

Keeps money in our account, off-setting our mortgage, pay the min each month, and off in full when the deal ends, then start again with the next 0% purchase deal.

Works great for us, and I always make sure I have money in the bank to cover it, and we live within our means, otherwise I wouldn't do it - you do need to disciplined and sensible (and boring?! )

[d000hg]

To be honest, if you are working as a contractor then getting credit isn't normally something that you would be doing.

I think most contractors still have a mortgage. And it's common sense to use credit cards for financial protection and reward schemes... our DVD collection is basically paid for by the Play.com vouchers we get from the CC.

Not sure why the OP is asking specifically about being out of contract. What about when in one? I am a software developer. I am a company director. I am (sort of) self-employed, running own company.

[Mr.Whippy]

And it's common sense to use credit cards for financial protection and reward schemes... our DVD collection is basically paid for by the Play.com vouchers we get from the CC.

Indeed... I just got my Mrs a nice TAG Heuer watch for free for Xmas....thanks to the rewards from using a credit card to pay for everything, business and personal

Should hopefully get me a few brownie points

[markmm]

We use American Express Gold card that is always fully paid each month through DD, which keeps money in our current account mortgage.

[richy]

TykeMerc - ok so you have 24 months living expenses sitting in cash. That's comforting. Two problems with this:-

1. Inflation. You think you have 24 months living expenses but it may well turn out to be only sufficient for 16-20 months because of unforseen plus the fact it's in cash and inflation eats into its value plus the cost of things incrase over the 24 months. Ouch. What if you're on the bench for 20 months? You default after 20 months? Not good. No need for this situation to occur which leads me onto the next point

2. The time to prepare your finances and credit profile is ideally in your good time, before you hit the bench i.e. now. By not doing this you are missing out on investment gains and building up good credit profile to secure better and longer 0% credit deals.

Hi contractor79

Does your ltd co invest in metals? Or you personally?

my ltd co has likewise many months cash reserves, retained profits.. I would like to make it work better than A+L's 1% interest, and SecureTrust's 3%!

How are you doing your investments? Are you taking out company bond issues? Is your ltd co buying the metals shares?

Cheers, richy

[richy]

TykeMerc does pay "many on time" payments... the balance in full, every month by the sound of it... Which will be better for his credit history than making the minimum payment every month.

Depends what financial company is evaluating. What criteria ar they working too?

Do they want someone who makes min payment, and lets them charge interest on the rest?

Are they cautious, and want someone who pays the whole lot off every month?

Cheers, richy

[contractor79]

First of all, make sure that if you pay things off in full that it comes up in your credit report. My bank credit card payments in full going back 12 years did not appear on credit file as bank did not submit those records to credit agencies.

I don't invest company money in anything but 'high' interest bonds from bank. I'm talking about investing personal money. I try and minimise cash holdings as return is so poor and diversify the rest in assets that can generate higher returns, albeit more volatile.