Credit Card query - what should I do with Balance?

AJ84

Hi All

Just a quick one -

I have a Halifax One credit card @ £5000 limit - pretty much maxed out.

Wanted to Bal Xfer it but can't seem to get a card. Credit Rating ranged from 750 (current) to 900 (before I applied for a Nationwide card 2 weeks ago) from Credit Expert. I pay their annual fee so I know if my file is bad/been checked etc.

While I know I pay out a lot, my income accomodates this and I don't feel I am in debt at all. As a break down:

Grad account overdraft = £1500
Halifax Limit = £5000
Car HP = £25,000


As mentioned, I am more than on top of all this and while some will say the money is not "mine"...I have assets that I could chop in (for instance the car which has been valued at more than the loan currently) so it's not debt as far as I am concerned.

My query is - what do I do with the credit card? The interest rate was at 19% but I got a letter on Friday that it is being increased to 25%.
On questioning it, they could not explain as I have never missed a payment and generally paid more than minimum.

From what I hear, I could close the account and just pay my usual monthly amounts which I don't mind but wanted to hear thoughts.

Credit History: few searches here and there in the last year - the last one being Capital One which I got last week but this is one of their stupidly high 35% cards with £100 limit :- )

No missed payments in the last 6 years apart from the first year which is due to come off - this was a car that I was late on 3 occassions but that was 5.5 years ago.

Not struggling at all but just feel I shouldn't just pay them the increased interest.

Cheers

YorkshireBoy

Two main things are working against you:

You only have the one credit card and it's maxed out; "applicant has spent everything given and now wants more" (is what your report is saying to prospective lenders), and

£25,000 is one heck of a loan/HP agreement! :eek:

It doesn't look like you have a choice regarding the credit card debt, being as you've been declined by Nationwide and the Capital One offer says it all really!

Who do you bank with? Maybe try for one of their cards.

AJ84

Nah 25k is fine :- )
Luxury afterall!

My colleague made a point that everytime I went for a new card (nationwide etc) I went for a Bal Xfer @ £5000 which probably made them thing "hang on, this guy just wants a 0% bal xfer"

With Cap One, I said half the value and sure enough it went through - though not for the one I wanted.

Bank with Barclays - My worry with them is they have access to how my banking has been and given that my OD is £1500 interest free, I've made use of it (shoving as much of my salary into a savings account that I keep seperate from all the above).

Worth trying I guess but I'll leave it until Jan where I should potentially have my score back in the 980's.

Strangely, when I applied for Cap one last Jan, I got declined and at that point, I had less "debt" and more points -

Thanks for the advice/questions that I have now asked myself!