Credit Card - loans

loulouloulou_2

Can anyone help?!?!?

I have two credit cards, which are my only debts, but these are both really high.... i rang my bank and said about the credit cards, what was left on them and how much my balance was.

I explained i wanted to shut the cards (which were with my bank) and take out a loan to cov er them as i couldn't afford the interest rates - 1 had gone up to 24%!!!!!!!

The bank wouldnt help me as they said i had enought credit out already, even though the loan would close my credit cards - but i guess they get more money from my card interest rates as they would do from a loan - the interest rate for a loan from my bank is around 6.6%.

Surely this isnt right?? Has anyone else experianced it? is there anything i can do??

Thanks

Gordon_the_Moron

Depends how bad your credit rating is, if it is OK you could try for a lower rate card/loan elsewhere. Just about any card you apply for would be less than 24% apart from store cards which can be in the high 30s. Also do you have an overdraft on your current account as they tend to be lower than 24% (I have never heard of one which is higher)

If you have a decent overdraft with your current account and earn at least £500 per month try getting a current account with Alliance and Leicester, they offer an overdraft which will match your current one (provided you've been in credit for 2 days in the last month) at 0% for a year than a market leading 5.9% afterwards. You need to be able to pay in £500/month to Alliance and Leicester but if you can't you can cheat by withdrawing the cash then redepositing it.

loulouloulou_2

thats really helpful, thanks.

I argued with the bank that the 24% had gone up without my knowing of it, and they said they had sent a letter which i hadnt recieved.

They said they can understand i dont want it at 24% so they have moved it down to 19%!!!! How can they justify changing it then???

My overdraft is only £100 at the moment and my credit rating is fine, i have checked with credit expert. But the banks are saying as i have the most i can take of credit out, i cant get a loan to cover it as i wouldnt be able to afford the repayments - i'm paying a lot more every month now than i would be with a loan......!

In a way i can understand what they say, but feel a little cheated, as they'll give me the credit in cards, but not in a loan, if you see what i mean.

I'll try your tips though, thats great, thanks!!

loulouloulou_2

How can i go about maybe getting a loan to debt consolidate if the banks are saying i have too much credit out already... im willing to get them to pay the money off my card and shut my accounts, but they say they cant do this.

I dont want to borrow anymore than i already owe, just borrow to cover my debt at the moment at a lower rate?

Can i get the credit card issuers to lower the rates any more??

thanks for all your help:

Moggles_2

Hi there

You don't say which two credit cards you have at the mo.

Can i get the credit card issuers to lower the rates any more?

It's a Catch 22 I'm afraid. The lenders will lower the interest rates only after you clear the balance.

Have you considered a life-of-balance card? The new Marks & Spencer 3.9% LOB deal is popular with MSEs. For more suggestions, have a look at the *Best Balance Transfers* sticky above.

Obviously, the success of this approach depends upon getting a good credit limit. For tips to improve your chances, click on *Credit Rating* in the black box at the top of this board. Then select Martin's *Check and Improve your credit score* article near the top of the page.

Very best
M