CC v Repayment Account

Mule

Hi

Just had a call from one of my CC companies offering me a repayment account. Not heard of this before - has anyone else? I am nearing my limit (£6000) on my CC and paying 15.9% purchases and 21% cash advance (have transferred as much as I can onto two low LOB cards and can only make min payments each month i.e. it's a struggle). The account will work as follows:

Current balance of £5700 transferred to repayment account

Current card reduced to limit of £100 (from £6000) - would cut this up anyway.

New interest rate of 11.9%

Have to make a minimum payment every month by s/o but can overpay at any time.


Does anyone else have experience of this type of arrangement? It sounds like a good idea to me. I'm pleasantly surprised they phoned up to offer it - after all it's less interest in their pockets each month.

jay78

You say you're stuggling, have actually missed payments? If the bank know you're stuggling it could be a way of the bank trying to minimise the extent to which you struggle. Bear in mind though 11.9% is quite high for repayment. You could get a lower interest rate LOB card and maybe even a loan with a lower interest rate. which CC company is it?

Mule

Thanks for your reply.

It's a mint card. You're right about the APR - it is still relatively high but compared to what it is at the moment it seems a better deal. I haven't missed payments but have been using one card to pay another.

jay78

Yes the rate is a lot better than most typical cards. It seems like the bank are trying to get there money back. You could try calling them and saying that you're interested but would like a lower apr, say that you could get a better rate with other LOB cards to back your case.

Mule

I did ask if they would do it any lower than 11.9% but they said no - maybe i should try the LOB point as you've mention to strengthen my request.