Effect on credit file if I reject Aqua interest hike

sammie28 · 30 September 2017 at 11:40AM

Hi

Does anyone know what effect it will have on my credit file if I reject the planned interest rate hike from Aqua?

They have said if I reject it, they will close my account but it will show a balance.

Will this negatively affect my credit file? And if so how?

I really don't want to mark my credit file by closing it but I'm not in a position to pay it off or balance transfer.

41.9% is ridiculous though and its the 2nd increase since opening the account. I've not missed any payments or gone over my limit, and according to Aqua its a decision from the powers that be and affecting a lot of customers.

Thanks in advance.

[Deleted User] · 30 September 2017 at 12:48PM

It will just show as a balance, and then closed once you have cleared it.

Never carry a balance on a high interest card - or anything that's not 0% for that matter. Consider getting a new card that will allow you to put regular spend on a card and clear in full each month.

Rate increases are done by customer segment - it's not personal.

nic_c · 30 September 2017 at 2:22PM

I assume it will be marked as defaulted, but hopefully they will freeze interest rates if you tell them you are in financial difficulty. If you can't pay it off or transfer it, then no other real option

sammie28 · 30 September 2017 at 3:19PM

Thanks for the replies. I have spoken to Aqua again. They said they won't put any adverse info on credit file as long as the minimum payments are received, but the account will be closed with a balance showing.

What I'm worried about is how that looks. Will it look like I have defaulted even though it's my legal right to decline the hike and pay off over a reasonable amount of time.

stevenhp1987 · 30 September 2017 at 3:27PM

sammie28 wrote: »

Thanks for the replies. I have spoken to Aqua again. They said they won't put any adverse info on credit file as long as the minimum payments are received, but the account will be closed with a balance showing.

What I'm worried about is how that looks. Will it look like I have defaulted even though it's my legal right to decline the hike and pay off over a reasonable amount of time.

No, it won't show as defaulted unless you miss a payment.

Just pay as much off as you can and avoid keeping money on high-interest spending as you'll pay much more in interest than you borrowed!

JuicyJesus · 30 September 2017 at 4:37PM

I was in this exact situation several years ago. The account will show as open on your credit file with the balance reporting. You will not get any adverse information/missed payments/anything else negative unless you actually start missing payments.

sammie28 · 30 September 2017 at 7:42PM

Thanks everyone.

Juicy Jesus - the guy I spoke to said they would close the accoun on my credit file. Think I need to ring them back and ask someone else.

Thanks for your help.

[Deleted User] · 30 September 2017 at 8:49PM

It cannot show as closed until the balance is zero.

nic_c · 30 September 2017 at 9:20PM

I guess they mean the account is closed to new debits, so effectively its like having a card with a balance and paying it off over time. They could close it with a balance, but only if it's in default. So long as at least minimum payments are made it won't get that far. I assume they are still charging the old interest rate so its probably a matter of paying off as soon as you can

forgotmyname · 1 October 2017 at 1:53AM

Yep, account closed for new spends. The balance can only go down unless you miss a payment.

Candyapple · 1 October 2017 at 11:08AM

It won't have an effect on your credit hisgtory, like JJ said, your balance will just go down every month but you won't be able to spend on the account.

In the meantime, have you looked to see if you can get a balance transfer card elsewhere?

https://creditcards.moneysavingexpert.com/?balance-transfer&_ga=2.62289132.1114837492.1506852133-488172084.1506852133

Effect on credit file if I reject Aqua interest hike

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free