Reduce interest rates?

spi

Hi

I have two credit cards, both with MBNA (one used to be Abbey). One has £5600, the £3400.
The interst free period has now run out on both so im paying >£150 interest every month. I havent spent on either card in ages, i know ive made some bad financial decisions in the past but i really want to get them sorted now. Ive applied for some 0% balance transfer cards but have always been declined.
My credit rating is good.
Any advise on how i can reduce the amount of interest im paying?
Thanks in advance

jd87

If you keep getting declined then probably your credit rating isn't good. Your credit rating is made up of lots of different factors.

Exactly which cards have you applied and been declined for?

Do you know what the APR % is on the two cards you mentioned? Are they the only cards you have?

spi

Im sure my credit score is good - ive never missed any payments etc.

Ive applied for Lloyds, Citi and Barclays cards at various points over the last few months but have been refused for all of them.

I'll check my APR when i get home. Would it be worth asking MBNA to lower this - is this something they do?

On another note, on my credit report it shows old cards as been 'settled'. Is this the same as been closed?

Thanks for your help.

jd87

If you ask them to lower the APR they will probably laugh in your face.

Settled is the same as closed.

Like I said, credit "score" depends on lots of different factors. It might be that you simply already have too much debt. Even people earning six figure salaries who never miss payments still get declined for cards; in that case it's because card companies can't make any profit from them.

I think you might have to consider applying for a loan to consolidate your debts, and you might even get declined for that. A loan is worth a try because the APR will only be 7-10% whereas at the moment you are probably paying 15-25%.

Whatever you do, don't get applying for any more cards. Every application you make damages your credit file.

CannyJock

spi wrote: »

Ive applied for Lloyds, Citi and Barclays cards at various points over the last few months but have been refused for all of them.

Not the most generous companies with their limits.

I'd have gone for a Halifax and maybe a Natwest card.

Moggles_2

CannyJock wrote: »

Not the most generous companies with their limits. I'd have gone for a Halifax and maybe a Natwest card.

Absolutely.

13 months at 0% is currently available to new customers from Halifax on balance transfers made in the first 90 days. There's a 3% BT fee.
IME and from feedback here, credit limits are generous and the minimum monthly payment is just 1% of the balance shifted

http://www.halifax.co.uk/creditcards/pluscard136.asp