Fair credit score but can't get loan/0% balance transfer

Diamond66

Can anyone advise me?
I have a large credit card debt with MBNA who for the last six months have been charging me 19.5% (an increase from the previous 1.9% I had). Six months ago I tried to get a balance transfer credit card at a lower rate or a personal loan but was refused. I had been out of the country for a few months so thought this was going against me. Now I have been in my current address for 11 months, in a permanent job for 6 months I thought I'd apply again for the HSBC 0% transfer card. No luck even though Experian has me as a "Fair", I can provide address details for the past 3 years, I'm on the electoral role, I have a landline phone, I earn enough to easily afford repayments (I just object to having to pay such a high rate that it will take me years to pay off the debt rather than the 18mths it would take me with a good rate personal loan or 0% balance transfer card).

I don't need my credit card as I can get by (as long as no emergency surfaces) without it. Should I contact MBNA and say I want to close my account, they should stop charging me interest and agree to pay them, say £500 per month? Or would this affect my credit score in the future?

What other options do I have?

While I realise my circumstances might not be so bad as others who are struggling and are having to use their card just to live each week, I don't think this situation should be allowed to happen where a company can charge me 19.5% and I'm deemed able to afford it (and I can if I don't mind them sucking up my money for the next x yeas) yet I can't get credit/loan anywhere else??

B

The_Boss

Dont be silly - how can you close your account when YOU owe THEM money? The guy on the other end will laugh at you. There isnt much in your favour except waiting for your report to right itself and applying for another card. For the record, Halifax gave me a 0% deal a week after being turned down by M&S so give that a try. Or maybe Barclaycard will be happy for you to get a life of balance 5.9% card with them and pay them the debt, albeit with a third as much interest.

Diamond66

Ok, maybe I used the wrong words. I know you can for instance, tell a credit card compay you can't afford to keep paying at the minimum rate (I can) and therefore they will stop the account and accept what an agreed monthly payment that you can afford - so I thought I might be able to do something like that. Maybe I am being silly.

YorkshireBoy

Diamond66 wrote:

Ok, maybe I used the wrong words. I know you can for instance, tell a credit card compay you can't afford to keep paying at the minimum rate (I can) and therefore they will stop the account and accept what an agreed monthly payment that you can afford - so I thought I might be able to do something like that. Maybe I am being silly.

That would completely ruin your credit history, as the lender would mark your CRA file with an 'arrangement to pay'.

This would prevent you from obtaining cheap credit for the foreseeable future.

Send for your £2 statutory credit reports from Experian & Equifax to see if there are any problems recorded (perhaps there are some that you were unaware of?).

Diamond66

I'v seen my credit score with Credit Expert/Experian - nothing wrong with it - I've never missed a payment on anything, no CCJ's or anything. Think it is because I don't stay in one place too long - although that doesn't mean I'm a vagrant! Thanks for your reply though. I'll try a life of balance transfer.

Bokken_2

Diamond66 wrote:

Think it is because I don't stay in one place too long - although that doesn't mean I'm a vagrant! .

You may have identified the problem.
Have you tried using your parents/sister/brothers address as your permanant address,instead of using a new temperary address for each credit card application.

jonesMUFCforever

Bokken wrote:

You may have identified the problem.
Have you tried using your parents/sister/brothers address as your permanant address,instead of using a new temperary address for each credit card application.

Sorry but this is plain stupid advice!

$17mma

Have you called MBNA and asked them for a reduction in the rate...when i had an Abbey card managed by MBNA there was not a month that went by that I did not ask for a rate reduction and they didnt give it to me.. worth a try they can only say no! My rate was reduced from 21 something down to 12. something

Bokken_2

ejones999 wrote:

Sorry but this is plain stupid advice!

That is where you are wrong it is Plain advice but not stupid.
This is used by numerous personel in the Armed forces to generate a good credit score simply because they are constantly moving from one base to another.
Have used it and it worked perfectly well for twenty years.

Diamond66

Well for my situation it doesn't make any difference anyway as all my family lives overseas. I have asked MBNA a couple of times to reduce my interest rate. I'll do that again incase I have no luck with my application for a life of balance card.

jonesMUFCforever

Bokken wrote:

That is where you are wrong it is Plain advice but not stupid.
This is used by numerous personel in the Armed forces to generate a good credit score simply because they are constantly moving from one base to another.
Have used it and it worked perfectly well for twenty years.

It may well have worked well for you but in fact is fraud!
There are special processes in place for overseas services personnel.