Experian report.....very confused......

wannabedebtfree_2

Just applied online for the Tesco credit card, it says it was acceped for a £2400 credit limit, and I have just switched £2200 of the littlewoods card onto it, am going to pop upstairs and switch the other few hundred on it onto my nationwide card.............then I can sit down and work out what to do next.........is it worth applying for a Natwest card too? or is 2 searches in one day going to start a problem??? I feel massive relief...........thanks for the advice everyone, I truly appreciate it........

GeorgeUK

All companies have their own method for working out the credit score - that's why it is advised not to bother purchasing from CRA's what your credit score may be. They wouldn't know your salary so how could they say whether you had too much credit or not?

The amount of credit you have available may count against you but you may still be accepted for a new card or two. Just remember that you should only have about 3 credit checks in a 6 month period or your credit score will be affected.

GeorgeUK

I applied for 2 cards quite close together, but it depends on the total amount of credit checks you have had. If you seem desperate for credit, this may count against you, but you can always try again in 6 months.

Just make sure that you don't spend on these cards and that you always pay the minimum - possibly set up a direct debit. If you miss a payment you may lose the promotional rate.

Have you decided against trying the virgin card?

wannabedebtfree_2

Well, I have an A&L card, so I thought I was unlikely to get it, as they are both MBNA.

I will not be spending on any of my cards, in fact I am going to chop them up, just need to make a decision as to which one goes first!! Although the Littlewoods card has a high interest rate you get 2 months interest free on purchases so I might keep that at home for emergencies, I have worked out I will be making payments to Tesco for £68.04, which is £132 less than the least I was paying the Littlewoods (was paying over the minimum to get it down quicker), so if I pay £82 more off the Nationwide card each month that gives me a £50 pcm buffer zone, which is £11.53 more per week, which doesn't sound much but it will really take the pressure off for a while, I will then decide what to do next!

In fact...........I am having a brainwave.........I should in fact clear the A&L card next, which wouldn't take long if I only pay the bare minimum on everything else and just whack that £132 off it............I need to sit down and re-jiggle my finances.

I checked my Equifax records this morning as well (got the 30 day free trial) and its pretty similar to the Experian report, but easier to read! This application for the Tesco Card is the only credit check I will have had in a year, so I think I should be ok for a while........so is it worth seeing if I can get another card???

TotallyBroke

Income:
My wages = 221 monthly =958
Partner wage = 66
Child benefit = 33.20
Child Tax Credit = 84.00
So weekly = £404 monthly = £1750


Outgoings: Monthly = 958

Phone = 13
TV Licence = 13
Water = 30
Car ins. = 27
House ins = 8.50
Sky = 16
Broadband = 16
Car Servicing etc = 40

Total = £163.50 Put car servicing and water money into a savings account until needed.

DEBTS:
Nationwide CC £6400 (17.9%) = £200
Littlewoods CC £2633 (27.9%) = £200
A&L CC £454 (21.9) = £25
My Egg CC £2200 (17.9%) = £55
Joint Egg CC £3400 (17.9%) = £90
Partners NWest CC £4100 (5.9%) = £105

Total = £ 675

So monthly wage £958-163.50-675 = £119.50 Put £50 of this into savings account to be used when needed. For presents each month & Christmas & clothing.

Outgoings: Weekly = 183.20

Rent = 78.00
Council Tax = 31.00
Gas = £10
Electric = £14
Petrol = £30

Total = £163

So weekly wage £183.20-163 = £20.20

So in week1 of the month you will have £20.20+£69.50 = £89.70 for food
Week 2 £20.20
Week 3 £20.20
Week 4 £20.20 Total for food per month = £150.30

Might not seem a lot but with careful meal planning and using less washing powder and using up cleaning products. Restricting what you then buy (vinegar instead of window cleaner as a suggestion) It can be plenty.
Plus you do have the spare £50 in savings as an emergency.

You can now change your cards in the debt section and edit the amounts you will be paying. You can then up your shopping amount or use it to pay off another card. Also you said that the CTC will also be increasing. I would suggest you either add that to savings or use it to overpay. But do not use it in day to day.

TotallyBroke

As you have now transferred the littlewoods to a cheaper card. Then yes the next one to go would be the A&L one. I would actually transfer £200 of that onto the Tesco card. It would mean the A&L one would be gone in a few months. Then it would be the Nationwide one, then the joint Egg one. By that time your egg one will have reduced a bit so it would be next and then lastly the toss up between the tesco and Natwest.

GeorgeUK

Instead of closing or chopping up any cards that you manage to clear, wait for a nil balance statement to come through and then contact them to see if they have any balance transfer promotions on.

That's what i do and the highest APR i pay on my cards is 7.92%

wannabedebtfree_2

Thats good advice George, I think I made that mistake before, I used to have 2 other credit cards many moons ago that I used to BT onto, then when I paid them off I closed the account feeling very pleased with myself.....what a fool.....if I hadn't I might not have ended up in this mess again!

Thanks to totallybroke too, I will definately sit down and sort out next months money again as there will have been some changes now, but already I am saving about £50 per month in interest payments, so I am feeling much happier......

wannabedebtfree_2

I am going to use my nationwide bank account (which has no overdraft) to put the car/clothes/pressies etc money into, I think I will start with £50 per month and then when I have a few hundred I will stop for a while and pay the extra £50 off the credit cards.......I will sit down tonight (after my root filling at the dentist....aaarrgghhhh).......with my little whiteboard and sort this mess out!

TotallyBroke

wannabedebtfree wrote: »

I am going to use my nationwide bank account (which has no overdraft) to put the car/clothes/pressies etc money into, I think I will start with £50 per month and then when I have a few hundred I will stop for a while and pay the extra £50 off the credit cards.......I will sit down tonight (after my root filling at the dentist....aaarrgghhhh).......with my little whiteboard and sort this mess out!

Will a few hundred be enough to cover birthday presents and christmas presents until next year? Will it be enough to cover a service on the car? I suggest you do not stop it totally but maybe halve it. Then on 1st January 2010 have a look at what is in there and decide whether you can pay a lump sum off one of the cards.
Look at what you spent last year on the car, clothes and presents. Add it all up and divide by 10 (seeing as we are in Feb) that is what you should be putting away each month. I know it is not always easy to do but it is what you should be aiming for.