Advice needed please

flipdee

Hey everyone,
Made a really stupid error recently, somehow managed to make the wrong (less than the) minimum payment to a M&S Credit card and only noticed when the most recent statement arrived.
They have given me the warning speel at the bottom of my statement about failing to make a minimum payment and sent a separate letter to demand the overdue amount (paid today) and say they have reduced my credit limit by £3400.
They say they will re-access my credit limit if I make monthly payments ok for the next 6 months.
This is my first ever problem in the minimum payment department (thankfully).
What i'm wondering is, I was going to balance transfer the balance from the M&S card within the next few days, if I do this and get rid of the M&S card am I missing out on repairing the slight glitch in my credit history?
Also, my wife is due to cancel an unused credit card in lui of applying for a new one, is there a time delay on when a cancelled card actually shows up on your credit score, i.e. Should she wait for a while until applying for the new one?

Sorry to bombard with questions but I was also wondering, when applying for the Egg 01/04/2010 0% Balance transfer card, when they price for risk, it mentions a variance in APR, but does this effect the deal/actual card you might get?

Does anyone know who's the kinder from a credit scoring point of view? Egg or Nationwide? - Maybe a stupid question as it's probably totally dependant on your personal circumstances?

Many thanks for your help,

flipdee

cooltt

Hi
Check if late payment has appeared on your credit file, if it has you've had it you will not get another card for at least 12 months.
See if the card your wife is not using will give you a balance transfer deal or low rate for the life of the balance.

Under the current climate CC company's are being super strict with new applicants. One late payment has smashed up your credit file for a while.

Cancelled cards usually take 6-8 weeks to show up as settled on a credit file.

Variance APR on EGG card means depending on your credit score is what interest rate they will offer you.

Egg are easier to get a card from Nationwide are stupidly strict which is laughable since their only a !!!!!! little organisation. I got one of their cards, took 3 weeks to arrive with a silly £1000 limit. I told them don't bother since i only wanted it for holiday and i know my credit file is excellent, so they increased the limit to £4000 there and then.

YorkshireBoy

flipdee wrote: »

What i'm wondering is, I was going to balance transfer the balance from the M&S card within the next few days, if I do this and get rid of the M&S card am I missing out on repairing the slight glitch in my credit history?

Possibly, although one late payment shouldn't be the end of the world. Everyone makes a mistake and if it's an isolated one it shouldn't have any major effect.

I'm 99% certain that if you BT off the card and let it remain idle they'll still report 'green zeros' each month.

Also, my wife is due to cancel an unused credit card in lui of applying for a new one, is there a time delay on when a cancelled card actually shows up on your credit score, i.e. Should she wait for a while until applying for the new one?

Can be anything up to 3 months in my experience, although usually it's done within 2 months.

I was also wondering, when applying for the Egg 01/04/2010 0% Balance transfer card, when they price for risk, it mentions a variance in APR, but does this effect the deal/actual card you might get?

It's usually just the APR that's different. Some lenders, eg Capital One, reserve the right to substitute a different card altogether, but I'm fairly sure Egg aren't one of them.

Does anyone know who's the kinder from a credit scoring point of view? Egg or Nationwide?

If you gave me a free bet, then normally I'd put the money on Egg. However, they're getting some bad press at the moment for what they're doing to the rates for existing customers and that may filter through to new customers as well.

If it's a large BT you're looking for then it's a no-brainer...apply to Egg.

flipdee

Thank you both for your very helpful replies.
The M&S card with the missed payment is in my name and the unused card in my wifes.
Do you think the M&S missed payment situation effect my wifes ability to apply for a new card?

That is good advice against the Nationwide card, I would be needing £2k so would rather not risk getting a card with a low limit.

My wife had enquired about a BT offer on the unused card but all she was told initially was "cancel it and reapply and you'll get the new customer deal" so i'm thinking whoever she spoke to wasn't feeling terribly helpful, as I suspect this isn't an option.

The unused card is a Virgin card, not sure if they are known to offer any BT deals when you threaten to leave?

I know, typical. missed the minimum payment amount by a matter of pounds, can't believe I made such a error especially at this particular economic time.

Appreciate all of your help.

If I was to balance transfer a portion from the M&S card and pay off the rest over the next 6 months might that have a more reliable impact on my rating or maybe just leaving it open for 6 months would have a similar result.
Difficult questions I know, because we all really don't know what kind of mood these Credit Card companies might be in right now.

Many thanks again,

flipdee

YorkshireBoy

flipdee wrote: »

The M&S card with the missed payment is in my name and the unused card in my wifes.
Do you think the M&S missed payment situation effect my wifes ability to apply for a new card?

They'll see it from the search if you're financially associated (through joint current account, mortgage, loan, etc). I didn't think (in isolation) a single late payment will affect you. It'll affect her even less IMHO.

My wife had enquired about a BT offer on the unused card but all she was told initially was "cancel it and reapply and you'll get the new customer deal" so i'm thinking whoever she spoke to wasn't feeling terribly helpful, as I suspect this isn't an option.

The unused card is a Virgin card, not sure if they are known to offer any BT deals when you threaten to leave?

It could be your lucky day. Virgin (in fact, MBNA) are known to give some of the best customer retention offers. I'm coming up to my 4th anniversary with them and have enjoyed an almost continuous stream of 0%/0.9% offers (many of them have been fee free or at least had a capped fee). I bet I've only been without an offer for 4 months out of the 48 month relationship I've had with them. I love 'em!

Your best chance here is to call customer loyalty on 0800 783 1116 (extended office hours). Have to say the advice given by their frontline CSA sounds poor because I thought the 'wait' for the same product, ie Virgin Money, was 12 months?

I know, typical. missed the minimum payment amount by a matter of pounds, can't believe I made such a error especially at this particular economic time.

Have you spoken to M&S and asked them for some leniency? Fair enough, take the £12 hit...but see if they'll remove the late payment marker.

If I was to balance transfer a portion from the M&S card and pay off the rest over the next 6 months might that have a more reliable impact on my rating or maybe just leaving it open for 6 months would have a similar result.

Already answered above (the 'green zero' bit).

flipdee

Many thanks again for all of your help.
I think we'll try the customer loyalty team, although we have requested it to be closed this morning, hopefully we're not too late to seek out a deal.
I'll give M&S a go and see if they will be kind.
Would a typical Virgin BT deal be 0%, with fee for 12months or so?
We got one offered to us from them as an existing customer on a previous occasion and it was 5 or 6 months I think.

Cheers,

flipdee

belfastgirl23

I have grovelled over late payments before and given my generally clean record, CC companies have been kind and waived the fee and not recorded it on my credit history. DH has also managed this even though his record is in no way as spotlessly perfect as mine

Good luck

PS my opening words were, more or less, 'I have been an idiot and am throwing myself on your mercy' which does reduce the likelihood of them from asking questions implying you are an idiot and I think makes them feel sorry for you...