help needed negotiating credit card rates

villarenter30

Sorry again being a newbie not much info on this - i have the majority of my debts on credit cards and am managing to make the minimum, sometimes a little more on each every month - sometimes am a few days late paying but always pay and because of lateness on some of them have lost good rates - as i say making payments but making no dent in the debt - i have rung several and pointed out that i may be late but never miss payments but advisors say no deals available on my account - my question is has anyone managed to negotiate a rate down in the same situation - don't need a plan as can make the payments - are credit card companies willing to altrer rates - surely its better for someone to clear the debt than go for an iva or ankruotcy where the credit card co gets little or nothing / also notice some of you mentioning full and final settlement - if you get one of these - does it affect yuour future credit history - sorry am i being a bit thick there - any advice gladly accepted - seem to be getting no where on the phone

Moggles_2

I notice some of you mentioning full and final settlement. If you get one of these, does it affect your future credit history?

Yes, if you agree a lump sum which is less than the balance you owe, it will be marked on your credit file and that would affect your ability to get credit for 6 years. While you're meeting the minimum payments, your credit rating remains unaffected.

Which credit cards do you have at the mo?

never-in-doubt

unless of course you add text similar to this at the F&F Settlement stages:

I'd consider using a text similar to this so you both know where you stand: Obviously delete/amend the bullets as you see fit.....

To confirm, I am more than happy to make an immediate payment of £XX.XX as full and final settlement of the account in exchange for total account closure with your agreement and, subsequently ensuring, that the following actions will be carried out;

• The Default Notice will be removed
• The Status of the account will change from “Defaulted” to “Settled”
• The Current Balance will appear as £0.00
• The Default / Delinquent Balance will be set to £0.00
• There will be no date in the “Defaulted Date” field (as it will be removed)
• There will be no date in the “Date Last Delinquent” field on the report
• This will apply to all 3 Credit Reference Agencies, namely Experian, Equifax & Call Credit

CLAPTON

difficult to give advice without knowing your total debts, your income, your spending and the reasons for the debts

however, it would seem your main problem is the total level of debt rather than the interest rates

I would suggest you post over on the debt free wannabe board and address the reasons for the debts.

KonkyWonky

villarenter30 wrote: »

i have the majority of my debts on credit cards and am managing to make the minimum, sometimes a little more on each every month - sometimes am a few days late paying but always pay and because of lateness on some of them have lost good rates - as i say making payments but making no dent in the debt - i have rung several and pointed out that i may be late but never miss payments but advisors say no deals available on my account

Unfortunately a late payment is regarded as a missed payment, the lender sets out specific payment dates for you and if you miss that date it is a missed payment. The next payment would be regarded as a stand alone payment within the following payment period. Missed payments are not good for your credit record which make it harder to get good rates, if lenders are willing to lend to you at all.

You are more often than not paying the minimum amount by the sounds of it. The minimum amount will probably only just cover the interest being charged within that statement period, there are even some cards where the minimum payment doesn't cover the interest charged.

Your best bet is probably to try and get a 0% balance card and move your whol balance over there, then you have around 12 months to work on lowering your balance. 0% balance transfer cards can be tricky to get hold of though with defaults on your credit rating......