Declined by MBNA

Steameh

stephane wrote: »

Well, your chances of getting a credit card with a limit of at least £10,000 are nil. Before giving credit they will consider your financial commitment. Just with the loan you are already around 45% ratio debt to income. Even if you decide to pay off the loan, lenders have no guarantee that you will. I think you need to forget that route but instead put more towards the loan to repay it quicker.

That's the problem. I don't have that option. They are fixed monthly payments so I can't over pay.

I will just have to save the extra I would pay off if I had the option. It would just be nice to see the balance go down so quickly.

I already have £1000 in savings so I'm off to a half decent start I guess.

Thanks for the replies

stephane_2

Steameh wrote: »

That's the problem. I don't have that option. They are fixed monthly payments so I can't over pay.

I will just have to save the extra I would pay off if I had the option. It would just be nice to see the balance go down so quickly.

I already have £1000 in savings so I'm off to a half decent start I guess.

Thanks for the replies

Are you sure? have you checked with the loan company that you cannot make extra payments on top of the monthly one? If not, then put the money in a high interest saving account until you can pay balance of the loan off.

Steameh

stephane wrote: »

Are you sure? have you checked with the loan company that you cannot make extra payments on top of the monthly one? If not, then put the money in a high interest saving account until you can pay balance of the loan off.

Well no I haven't asked them. I just assumed.

I'll give them a call.

Thanks again.

Steameh

Stephane,

Thankyou so much for the suggestion. I've just gave them a call and I can over pay so long as it isn't on a regular monthly basis. Every 6 months would be fine.

I have a balance transfer card at 0% with £1000 free on it for 15 months. Would it be beneficial to do a transfer and pay it off my loan along with my £1000 savings?

izools

The best option, as most loans have fixed repayments on loans, is to put the overpayments into a high interest savings account along side the loan. Then at some point in the future you will have enough in the savings account to cover an early settlement figure of the loan

stephane_2

Steameh wrote: »

Stephane,

Thankyou so much for the suggestion. I've just gave them a call and I can over pay so long as it isn't on a regular monthly basis. Every 6 months would be fine.

I have a balance transfer card at 0% with £1000 free on it for 15 months. Would it be beneficial to do a transfer and pay it off my loan along with my £1000 savings?

Well you have to take into consideration the fee you will pay for the transfer...which card is it? Also, you'll have to repay the £1000 from your credit card within 15 months to avoid paying interest at the end of offer. It might be better to put whatever you can on a saving account, then make over-payment every 6 month or even 12 months

Steameh

stephane wrote: »

Well you have to take into consideration the fee you will pay for the transfer...which card is it? Also, you'll have to repay the £1000 from your credit card within 15 months to avoid paying interest at the end of offer. It might be better to put whatever you can on a saving account, then make over-payment every 6 month or even 12 months

It is the Santander card. The fee would be 3% / £30 on £1000.

Repaying the £1000 will be no problem at all. I can afford to pay £280 a month off that if I really wanted too. I was thinking wack £1000 balance transfer and £1000 savings off the loan now then every 6 months i'll potentially have £1500 in savings to pay off aswell.

stephane_2

Steameh wrote: »

It is the Santander card. The free would be 3% / £30 on £1000.

Repaying the £1000 will be no problem at all. I can afford to pay £280 a month off that if I really wanted too. I was thinking wack £1000 balance transfer and £1000 savings off the loan now then every 6 months i'll potentially have £1500 in savings to pay off aswell.

You'll be better off putting everything you can on a high interest rate saving account, it will earn you a bit of money instead of paying a fee, and the result will be the same, you will pay off the loan quicker. I don't think that in your case a balance transfer of £1000 is the best solution.

Steameh

stephane wrote: »

You'll be better off putting everything you can on a high interest rate saving account, it will earn you a bit of money instead of paying a fee, and the result will be the same, you will pay off the loan quicker. I don't think that in your case a balance transfer of £1000 is the best solution.

I guess so if I'm having to pay a fee for the privilege.

I'd much rather see my loan decrease than making a few quid on savings though. Interest rates are pathetic these days. Plus the fact that seeing £5k in savings disappear into thin air will be pretty upsetting. I'd rather just pay the odd £1k off as often as I can and see progress on my loan.

Would it be worth doing if I could get a 0% fee balance transfer card and a half decent credit limit?

stephane_2

Steameh wrote: »

I guess so if I'm having to pay a fee for the privilege.

I'd much rather see my loan decrease than making a few quid on savings though. Interest rates are pathetic these days. Plus the fact that seeing £5k in savings disappear into thin air will be pretty upsetting. I'd rather just pay the odd £1k off as often as I can and see progress on my loan.

Would it be worth doing if I could get a 0% fee balance transfer card and a half decent credit limit?

It's up to you but to be honest, you should concentrate paying whatever you can towards the loan so you concentrate at repaying it quicker, instead of by doing a balance transfer, you have to put aside for the loan but as well into repaying the credit card within the time frame of the offer. I know that you said it would be upsetting to see £5k going but have you thought that I the same time you would get this amazing feeling of your loan disappearing...