Interest rate upto 24.9% can't get new Bal Transfer

adam24122004

I need some serious advice.

I currently have an MBNA platinum card owing just over £4500. I have recently noticed they are now charging me 24.9% interest. I'm sure it was 16.9% when i actually got the card.

My problem is that i have recently got a mortgage with my partner and have tried to apply for a new card to balance transfer to but cannot get accepted by anyone. I think this is probably due to taking out tthe mortgage.

I do own a MINT card that has a limit of £5000 and £0 balance but everytime i contact them they don't seem to have any offers. Will closing this account improve my chances of getting another card elsewhere or possibly pursuade them into offering me a deal.

I could transfer the balance to them and drop to 16.9% but incurr a charge of 3%. Not sure if that would be of any help.

Repaying the amount asked is not a problem but obviously my balance is only falling by £5 per month even tho repaying approx £90 inc. interest.

I need to find a solution as each day its constantly on my mind and would love one day to be debt free. Would love to hear your advice.

Many thanks

TFD_2

If you can't get a BT deal from Mint, then I'd recommend to just transfer the balance to them anyway. The 3% fee will be paid for in the saving in interest in just a few months.

Once your MBNA card is cleared, there's a good chance they'll offer you either a 0% deal or a reduced APR for LOB, so then you can transfer it back over.

You'll incur a few % in fees this way, but you'll still be better off than paying 24.9% interest on the balance.

Also try increasing your repayments just slightly. Paying £100 a month rather than £90 will pay it off at 3 times the rate! Get your payments up to £150, and with a lower interest rate you can start clearing £100+ a month off the balance - before you know it you'll be making real headway on it.

izools

Adam - the reason you won't be getting accepted elsewhere will be due to multiple reasons:

1. You've recently moved - short time at address = sign of instability (as far as a creditor is concerned)

2. Your registration on the electoral roll may not be reflecting on your credit file yet = no proof of residency

3. You have a new account (mortgage) which creditors would like to see open at least a year - any less and you've yet to prove you can handle the obligation

4. Some of your credit accounts may be reflecting at your old address, some can take upto three months to transfer.

5. Multiple credit searches - utilities, mortgage, several credit cards, we're probably talking over half a dozen credit searches in all - which is a LOT in a six month period and will hurt your score even more

I would reccomend waiting another six months, or waiting until you've lived at your property for a year, which ever is further in the future, otherwise you will get stuck in the "Decline spiral".

As TFD suggests, transfer the balance to Mint anyway, MBNA often offer balance transfer offers if you clear your account and don't earn them so much interest for a while. If they don't before the six months / a year is up, you can then apply for a new card with much greater confidence.

Good luck! And don't get apply happy! You'll never get out of the spiral of being declined for credit due to too many recent applications if you do!

Keep us posted

jonesMUFCforever

The only thing I can suggest is a loan - try the bank where your wages go into to see what they can offer.

izools

The bank will still credit score OP even if he banks with them they will perform a credit search, yes they will be more lenient, but they will still consider the same points mentioned above.

It is my opinion (totally unprofessional opinion of course) that further applications will only hurt OP's credit score further!

TFD_2

izools wrote: »

The bank will still credit score OP even if he banks with them they will perform a credit search, yes they will be more lenient, but they will still consider the same points mentioned above.

It is my opinion (totally unprofessional opinion of course) that further applications will only hurt OP's credit score further!

I'm with you, the OP should do what I said and ignore any other advice.

adam24122004

Thanks for your replys :beer:

Sod's law i suppose but things turned out great.

Just contacted mint to transfer balance and had an offer for the 1st time.

Managed to get 3.9% for 6 months at 2.5% fee. :j

Hopefully as you say MBNA may offer another deal in future but this will do fine for moment. Big saving that at least will go towards paying my balance rather than lineing their pockets.

Thanks again you have been a big help:T:T:rotfl:

binaryuniverse

It's a good start. And worth phoning up MBNA in a 6 months to see what they will offer you. At 3.9% your £4500 should attract around £15 interest per month (I'm calculating you were getting around £95 interest per month before?) So immediately thats £80 that goes straight onto the debt rather than servicing the interest. Just make sure you keep paying what you were before each month (or more if you can) rather than the minimum.
And if you still can't get new credit after 6 months. A stable LOB offer is certainly worth a go. I have 2 cards myself at 6.9% LOB which is quite a decent deal imo.