Clearing debt - reasonable plan?

TonyHoyle

I just got knocked back for a new current account on credit scoring (and I didn't even ask for an overdraft!) so I need to improve my credit score... I reckon clearing my debts is doable as they aren't large.

My credit report looks clean.. as it should be. My total debt is £4,600. Total available credit is only 30% of income (some of that is cards I don't use any more I think so could probably go around cancelling those.. if I can find the account details after all this time).

My thought was get a 0% purchase card, load purchases onto that and use the money saved to clear the debt completely (given that getting a 0% balance transfer for that much would be unlikely in the current climate).

My problem is that clearly there's something that lenders don't like about my credit report already (I'm damned if I can see it though) and if I start making applications for 0% cards and they get turned down they end up on the file and make it even less likely the next one will say yes!* I don't trust the recommendations on the experian site either even if they do say you're much more likely to be accepted by cards recommended by them.

So.. I want to maximise the chance that I get the (ideally) 0% card so I can get started on this.. any ideas? Or is it just a stupid plan and there's a better way?

* There is currently 1 in April 2009, 4 in december 2009 (the last time I tried this.. and got turned down all 4 times hence my reluctance now), and the bank I tried to join made one.

tez_c

I don't a have very good credit score and I was approached by a company who said that they could clear all defaults from my credit score for a fee - perhaps you could try this but I'm not sure how it works - surely thats illegal?

TonyHoyle

Well.. I have no defaults.. not even any late payments.

But such services are essentially useless. They can do nothing you can't do yourself - and they charge you for the privilege!

stephy110288

sorry but you cant pay to clear your credit file
are u on the electoral roll? i think thats the only thing i got checked on when opening a basic current account

TonyHoyle

Yes. Same place for 12 years too. The only thing that could possibly be wrong is the level of debt which means I need to pay it off.

JA1000

Why do you need to change bank account? Who was it with, I recently had a similar experience with Nationwide and they just offered a cashcard not debit card, again I didn't want any overdraft facility.

TonyHoyle

Long story. I was with halifax, but wanted to move, which I did in late December. Very unfortunately picked Alliance and Leicester, who have been a total disaster, leaving me with no ability even to find out my balance let alone manage the account properly.. so I need to move, and fast before I miss something and it gets messy.

So, based on reputation I picked First Direct.. who turned be down on 'credit' basis for a basic current account. That means there's something nasty on my credit record and the only thing it could possibly be is the level of debt - totals a little over 1 months salary - which I need to pay off.

DGJsaver

I would say mate , its probably the available credit thats holding you back , if as you say you are on the ER , and have no defaulst , missed payments etc....i wouldnt say your level of debt is scaring creditors off...

bargainbetty

If you have other cards, why not call those providers and ask for the best life of balance transfer rate (you are much more likely to get that than a 0% right now.

Use that, close the other accounts and cut up the cards. No temptation. Low life-of-balance means you can pay a set amount (more than the minimum) every month till it is gone. Just don't add to the debt, ever!

Good luck x