Just a wee question

kaz0705

Hi,

I became a DFW in January and, thanks to the snowball calculator hope to be debt free at the end of 2011 which I'm very excited about! And, as many people say, I've started down the right path due to the enormous wealth of information of these forums and website.

*copy and pasted the questions to the top as had quite a ramble getting there!*:o

SO... should I apply for a credit card and potentially reduce my snowball calculator by quite some time or should I just wait it out?

What, in real terms, will a bad credit score mean for me when the only financial products I intend to have in a couple of years will be a bank account and renting somewhere (which is credit checked, of course)?

What Would You Do?

*full information*

Anyway, in November I tried to consolidate my debts with a loan from my bank, HSBC and got declined so I thought i'd try with my loan company, A&L and got declined.

Having checked my credit score previously, I assumed it was down to banks not really lending. And then the realisation that even though I'd filled in my new electoral roll details, they weren't updated til Dec.

However, now, more realistically, I think its because I have 3 credit cards and a loan! :rotfl:

I have already 'written off' my credit score until I get my debts paid off which is fine because I then intend to never have debt again and am a looooong way off ever having a mortgage (although I have recently taken advantage of A&L £100 switch offer with TCB £45 on top and passed their scoring :T).

However, using the 'soft search' credit card tool, I might qualify (6/10 in my position do) for a capital one card which might offer me a 0% balance transfer or, if not, is still 5% less APR than my cheapest card and almost 10% less than my highest interest card.

Is it worth trying for it? The worst case scenario, as I can see it, is that I get rejected and another search is put on my card... But as I don't intend to use debt ever again, once I'm paid off, I'm not so bothered about getting rejected.

Tixy

Are you on a DMP kaz or paying more than the minimums on your cards?

Have you looked into the bt fee on the capital one card? Is the 5% less rate a 'typical' rate or a definite rate.

I think do some sums - so supposing they gave you a £1k limit on a new card, and you BT your most expensive debt, how much would that save you in interest overall in the next 2years? That might give you an idea as to whether its worth trying to do.

You had 2 applications in November? Do you expect to have any more in the next few months for anything (phone contracts etc)? Did the A&L new bank account record a search?

I'd say you could chance 1 application providing you accept that it'll the only application you do until summer.

kaz0705

No, I'm not on a DMP, just paying as much as I can off each month.

My credit card rates are hopefully static. As I'm no longer using them, if any of the companies try to increase the rate I'll just ask them to freeze my account at the current rate (thanks to the advice from Martin!)

There is a BT charge of 3%... Maths was never my strong point; think i'll get my boyfriend to look at it tonight!

I've got no more contracts coming up for the time being- switch to SIM only with mobile recently, am happy in my flat (and contracted until July anyway) and can't think of anything else I might need a credit search for...

Haven't checked my credit score since Nov- can I get another 'free trial' with the same company or is there a limit to the number of times you can?

Thanks!

Tixy

Just one free trial with each I believe. Might be worth getting the £2 statutory report though.