Current Credit Card Debit... best option, pls help!

scar1_2

Hi Money-Savers!

I am starting this thread to find out what my best options are with what I consider to be a very high credit card debt
After a crazy year of renting elsewhere due to work, renting my house out (rent did not cover mortgage) I am now back and in a little more debt than i'd like to be.

I have a Virgin Credit card with approx £8,100 with a limit of £11,000 which I want to clear as soon as possible. Since moving back I have more available cash to pay of debt quicker. I applied for an Alliance & Leister card and was told my credit rating was fine however they could not do a balance transfer as they were underwritten MBNA themselves. I then tried LTSB which was approved (great) received the card and unfortunately credit limit was set at £2000, allowing me to only transfer £1840.00 So I have done this leaving £6324.56 on Virgin Card.

I have since tried to apply for ASDA credit card and Egg, both were rejected and am worried about applying for any others incase I damage my credit rating.

I also have a Capital One credit card with £443.30 which I know i will clear early this year.

Any advice in best way to move this forward as I am keen to pay chunks off this debt monthly, obviously less intrest the better.

Electoral Roll status - Just registered again for current address
Financial associations - None
Total Available credit - £11,000 Capital One, £2,500 on Virgin, £8,000 on HSBC
Total used credit - £6324.56 Virgin, £1840.00 LTSB, £443.30 Capital One
No of active credit accounts - 4
Defaults/CCJs - None
Late payments - Once on virgin due to an admin error in November '08

Any help would be much appreciated.
Thanks
Steve

TheEffect

It may be due to the fact that you have £13500 in available credit...

YorkshireBoy

scar1 wrote: »

I applied for an Alliance & Leister card and was told my credit rating was fine however they could not do a balance transfer as they were underwritten MBNA themselves.

It's not clear whether you were accepted and took the card. Could you clarify?

zerocool237

TheEffect wrote: »

It may be due to the fact that you have £13500 in available credit...

From what i've read, i thought it was better to have available credit rather than lower youre limits and have little credit on each of the cards?

TheEffect

zerocool237 wrote: »

From what i've read, i thought it was better to have available credit rather than lower youre limits and have little credit on each of the cards?

To much available credit is bad.

NickX

scar1 wrote: »

I applied for an Alliance & Leister card and was told my credit rating was fine however they could not do a balance transfer as they were underwritten MBNA themselves.

There is a "get-around" for this using the Super Balance Transfer facility that MBNA cards offer.

I think this is what YorkshireBoy is alluding to in asking if you have actually got the Alliance and Leicester card. If this is the case, you can transfer the debt across from MBNA.

YorkshireBoy

Doesn't look like it though Nick, because A&L doesn't appear on the "total available credit" list (as I've since noticed).

It'd be a shame if the card was declined though.

scar1_2

Hi,

Cheers for the quick responses!
Yes I was accepted with Alliance and Leicester however I did not go through with actually getting the card as I could not take advantage of the 0% on balance transfers due to virgin card already being with MBNA.

Should I clear my capital one and close, also close my HSBC card?

Cheers again
Steve

NickX

scar1 wrote: »

Yes I was accepted with Alliance and Leicester however I did not go through with actually getting the card as I could not take advantage of the 0% on balance transfers due to virgin card already being with MBNA.

But MBNA run cards such as Alliance and Leicester allow you to transfer funds direct to your Bank Account. You can settle the other card from there.

If I were you I would contact Alliance and Leicester and say that you DO want the card after all and request a money transfer to your Bank Account. Then pay MBNA off from there.

scar1_2

Ok - Just so its clear, I should call Alliance and Leicester get the credit card and ask for a cash advance. Then use that to clear my virgin card.

If for any reason I cannot get this (seeing as I have been since declined on 2 other cards) would it make more sense for me to take chunks of the card which I have interest free on LTSB and only pay minimum payment on Virgin until I can move the debt to interest free, then start paying chunks off that.

Once again, thanks for all your advise!
Cheers
Steve

YorkshireBoy

scar1 wrote: »

Ok - Just so its clear, I should call Alliance and Leicester get the credit card and ask for a cash advance. Then use that to clear my virgin card.

Wrong terminology. You ask for a 'money transfer', NOT a cash advance.

If for any reason I cannot get this (seeing as I have been since declined on 2 other cards)

Unlikely they'll ressurrect the old application, meaning a new one is required.

would it make more sense for me to take chunks of the card which I have interest free on LTSB and only pay minimum payment on Virgin until I can move the debt to interest free, then start paying chunks off that.

You should make minimum payments on all cards, and pay any extra off the card with the highest APR. It's called 'snow-balling'.