0% credit card question.

little_miss_broke_2

Hi

I'm pretty new here, so i hope i'm posting this question in the right place!

I would like to move some of my current CC debt to a 0% one. I have applied for a post office card (yesterday), but my question is this:

If they refuse me (which is a possibility), should i:

a) Just keep plugging away at my cards as they are, paying off as much as i can each month and forget the interest free option

or

b) Try for a different 0% card?

I'm wary of applying for too much credit as i beleive it could have a negative effect on my credit score - is this correct?

c) Do option 'a', but apply again for a different 0% card in 6 months or so?

Many, many thanks in advance

Clariman

little_miss_broke wrote:

If they [Post Office] refuse me (which is a possibility), should i:

a) Just keep plugging away at my cards as they are, paying off as much as i can each month and forget the interest free option

or

b) Try for a different 0% card?

I'm wary of applying for too much credit as i beleive it could have a negative effect on my credit score - is this correct?

c) Do option 'a', but apply again for a different 0% card in 6 months or so?

Many, many thanks in advance

Hi lmb

It is true that lots of credit searches on your credit file in a short space of time does have a negative effect on your credit rating. This is because it could give future lenders the impression that you are in financial difficulty and desperately searching around for credit. However applying for one or two more cards in the next month or two should not have too much of an effect.

If you credit history is pretty good (no defaults, max of one late payment etc) then I would consider another application if you are rejected by PO. The other thing you could look at if it is going to take you a while to pay off your debts is a card that has a low Lifetime of Balance interest fee on BTs (e.g. 5.9% p.a.).

Clariman

little_miss_broke_2

Hi Clariman

Many thanks for your help. I will see what the post office say to my application and if they refuse i will try anther 0% card then. If that gets refused i'll probably leave it for a few months.

Thanks again :T

must_stop_digging

hi little miss broke
first off was very moved by your other thread in the debt free wanabee, you are now taking control :T
from what you have outlined i would work on the assumption that you wont get the p/o card or if you do it might be a very low limit.

If that is the case you should look to snowball payments.
basically start paying any extra however small to the highest apr store cards first as soon as the first is repaid then add that repayment into the next highest. as you don’t owe to much on these the snowballing payment will not be very much to start with but you will get an early emotional boost from paying off a debt. this strategy has really helped me.

If you are ok with computers you could try this to play about with repayment amounts
http://www.geocities.com/schizeckinosy/Snowball.html
good luck

little_miss_broke_2

must_stop_digging wrote:

hi little miss broke
first off was very moved by your other thread in the debt free wanabee, you are now taking control :T
from what you have outlined i would work on the assumption that you wont get the p/o card or if you do it might be a very low limit.

If that is the case you should look to snowball payments.
basically start paying any extra however small to the highest apr store cards first as soon as the first is repaid then add that repayment into the next highest. as you don’t owe to much on these the snowballing payment will not be very much to start with but you will get an early emotional boost from paying off a debt. this strategy has really helped me.

If you are ok with computers you could try this to play about with repayment amounts
http://www.geocities.com/schizeckinosy/Snowball.html
good luck

Aw, thank you. It was quite an emotional thread

I'll have a look at that 'snowballing' link, thank you very much. If it looks too complicated i'll get H to have a look for me, he's the computer expert of the house!!

:beer: