Can't get a balance transfer.

Empty_pockets · 10 September 2008 at 3:33PM

Hi.

I have a credit card debt of about 10K.

It's on full rate!

I tried applying for a reduced rate card about Feb but got turned down. I know too many applications damages your rating so left it till now and applied again.

Tried the Citybank card but again, got refused.

As a temporary measure I've requested a transfer from my Virgin card, where it is now, to my Egg card. Egg wouldn't give me a discounted rate but my plan is to zero the Virgin card them transfer the whole lot back again.( as Virgin are doing an offer, I did ask Egg but they wouldn't match it.)

This will inccur charges, I've not costed it but I guess it'll be about 3% each way so around £600. Interest is over £150 each month so I will make a saving after 4 months and more importantly will give me chance to think of a solution.

Ideally I'd like a nice low rate, life of balance card but I keep getting refused. I got a credit report from Experian I think a while back and although there were a few late payments on it but didn't seem too bad.

Had a county court in about Feb though. was annoyed as it was from the council. They sent one letter asking for payment, had the letter on the noticeboard, a month later, CCJ! Couldn't believe they would start court action so quickly!!

Anyway - any suggestions??

lisyloo · 10 September 2008 at 4:08PM

Yes but maybe not ones you want to hear :-)

Start meeting your obligations and pay your bills on time.
Don't ignore bills on the assumption that no-one will rush to take you to court.

With your current attitude/behaviour I wouldn't lend you money.
I would want to see some more responsible action, so I'm with the lenders on this one.

This situation is entirely under your control to improve (although it does take time).

Empty_pockets · 10 September 2008 at 6:58PM

What current behaviour??

Maybe I came across wrong.

In the 6 year history there were maybe 3 or 4 payments that were late and those were quite some time ago. It was never a problem I never had people chasing me for money. I maybe got a late payment charge as I paid cash at the bank and it didn't clear in time, thats all.

I don't ignore bills, I always pay them. I was very suprised I didn't get a 2nd letter or warning letter or even notification that they wanted to take me to court. What if that original letter had got lost in the post?? Surely they should send at least a reminder...?

Regardless. You say it takes time? How much time? I havn't even made a credit application in the last months. I have a good job, regular income, mortgage etc etc. I don't see why I have huge limits on some cards but can't get a new one with a discount offer.

lisyloo · 11 September 2008 at 10:49AM

It was never a problem

We've had some very loose lending criteria over the last few years and I would say that because of this you have "got away with it".
Now that getting credit is more back to normal (well a bit tight to be honest), you ARE being affected by your late payments.
So I think it's a bad assumption to say it doesn't matter.
The last few years have been very abnormal in term of credit criteria and don't expect it to be repeated in the short term.

as I paid cash at the bank and it didn't clear in time

If you find it difficult to get organised or can't get your head round clearnace times, then direct debit would be a very good solution for you.

I don't ignore bills

Only council tax?

I was very suprised I didn't get a 2nd letter or warning letter or even notification that they wanted to take me to court. What if that original letter had got lost in the post?? Surely they should send at least a reminder...?

Yes they should, but as you say things can go wrong (with the post for example).
It isn't everyone else's responsibility to give you many chances and reminders.
It's YOUR responsibility to meet your obligations.

I realise this might be coming across as a little harsh, but you seem to be expecting everyone else to wait until it's convenient for you and give you lots of opportunities and chances and I don't think that's an acceptable attitude (and wouldn't want to lend).
It's YOUR responsibility to pay your bills on time.
As far as late payments go, once is a mistake and you would be forgiven but 3 or 4 times is not the behaviour that lenders want to see.

You say it takes time? How much time?

Look on your credit report.
How much payment history do you have?
You should be able to work out when your late payments will dissapear.

I don't see why I have huge limits on some cards but can't get a new one with a discount offer.

If the huge limits are on older cards then it's due to the "credit crunch".
My interpretation is different.
I believe the last few years have been abnormal and now is normal.
You assumption that credit will continue to be readily available is quite wrong as is being proved country wide with the current crunch.

There is also the fact that lenders have different criteria.
They are individual business so can make their own rules.
So whilst company A might be strict others might be less strict and some will welcome late payers with open arms.

Empty_pockets · 11 September 2008 at 3:08PM

Ok,

Thanks for the input. Thats not being sarky either

I personally didn't think it was THAT bad but If the lenders think otherwise I suppose i'll have to make do.

I guess i'll just have to keep trying to reduce the interst rates with whoever will take me. Maybe a loan will be easier to get. Will have a look at them.

Thanks.

Ora · 15 September 2008 at 9:33PM

Hiya

I'm in the same boat and looking for help.
I've got 12k on credit card (we put our wedding on credit card thinking it would be the smartest way to borrow) Our intention was to transfer the debt to another 0% card.

However I''ve just been turned down by halifax. Am I correct in thinking that it might hurt my credit rating if I try to apply for another card?

Not sure what to do now. I'm considering an egg loan as its flexible.
I'll be able to pay the debt off in full in the next few months when I sell my flat (just getting some renovations done at the moment)

My credit rating is perfect thus far. Never miss a payment! I'm Mrs Direct Debit!!

If you have any suggestion to steer me in the right direction I'd be very appreciative.

NickX · 15 September 2008 at 9:56PM

Ora wrote: »

However I''ve just been turned down by halifax. Am I correct in thinking that it might hurt my credit rating if I try to apply for another card?

Well they do say that too may searches isn't too good for the old Credit Rating, but in your position you really could do with getting that debt onto a new 0% card.

Just because Halifax have turned you down does not necessarily mean that other providers will aswell. Each provider has its own internal scoring mechanism so an alternative provider may well accept you especially as you say that your repayment history is good.

If you do not get the full £12k limit that you need, then transfer as much as you can to a 0% deal, any reduction in interest payable is good.

As it is only a short term cashflow issue with you selling your flat, my advice would be to go for 0% cards rather than a loan which will incurr higher interest and could have an early repayment charge.

Good Luck.

SarahNeedle1872 · 15 September 2008 at 10:14PM

Just a thought...... Egg don't usually charge a BT fee on standar rate transfers, only the promotional rate transfers.....

Empty_pockets · 6 November 2008 at 11:11AM

Hi,

Correct, there was no transfer fee to the Egg card as the rate offered was a standard rate.

Can't get a balance transfer.

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