Any helpful advice greatly appreciated

Eddy2010

Hi,

I am 24 and I have approx 5k on two different credit cards. I have had a tough year due to losing a great job due to the recession. I now earn siginificantly less than I used to. However, I now live like a saint and I have surplus income each month. However, this surplus is being eaten away by approx £160 a month just on interest and overdraft fees.

I have a property which I have maintained the mortgage for over 12 months. I have no missed payments for over 12 months. I also maintain a mobile phone direct debit of approx £30 a month and a car finance loan of approx £360 a month (yes I bought it when times were good).

I want to throw my credit card debt onto one new card and enjoy the 0% so I can stop paying interest and actually address the capital.

Any suggestions as to what my best option is? Should I consider a loan?

Many thanks

E

Jammi

A successful application for a 0% credit card will depend on a number of factors, which from your post are currently unknown. How much of your current credit card limits are you currently using? We know you owe £5000, however what is you monthly income? Does your credit file show any defaults or CCjs. These factors and even more will determine whether you are likely to be considered for the privilege of a period of interest free credit.

Alternatively you could apply for a current account that offers a period of interest free overdrafts, Santander do this and also pay £100 if you switch your present current account to them.

Eddy2010

My monthly salary is £1400.00. I have no CCJs or defaults. Both the credit cards I already have are more or less maxed out at £2500.00 each. I looked at the Barclaycard Platinum card but it says you need to have 4 years history of having credit cards. I only have 3.

I do not want to apply for a card yet until i have read advice on this thread. i do not see the point in applying if people on here think i will get rejected as it will go on my credit file.

Thank you for taking the time to reply last time.

E

chattychappy

From those figures it looks a bit tight but not impossible. But all lenders have their own way of looking at things and on this site people just make educated guesses.

Unless you've had a number of recent searches, I'd stick in 2 or 3 applications in one go. Have a look around - a number of providers do BT deals. If possible avoid those from the same stable as those you've already got.

There's been at least one report of Barclaycard Platinum not being rigid about their qualification criteria.

Jammi

Eddy2010 wrote: »

I do not want to apply for a card yet until i have read advice on this thread. i do not see the point in applying if people on here think i will get rejected as it will go on my credit file.

No one on here can tell what the outcome of a credit card application will be. You may however benefit from their experience and opinion. You are currently maxed out on you current cards. If you make a new application, a card provider will assume that you are seeking to extend your liabilities by obtaining further credit. What they will not know-and there is no way they can tell-is that you are seeking to consolidate your current liabilities and take advantage of an interest free period. At this stage you do not appear to be a good candidate for a 0% credit card offer.

A bank loan or, as previously mentioned, an interest free overdraft may be a cheaper option to your current interest rates.

That said, making an application does not harm your credit files, making numerous applications does that. Numerous applications indicates desperation to get credit.

chattychappy

However many applications you decide to make (2 or 3 should be OK - I've certainly done 2 and had both accepted), the advantage of doing them together is that if you are successful then the extra credit available won't be reported in time to affect the other applications. Having too much credit available can be a problem. Having said that, it could work the other way - if you've got little credit available now, you could look more distressed than if you've got some unused limit.

Personally I'd just get on with it! And do report back the result.

Eddy2010

Thanks for both your responses. I appreciate your comments from your experience.

All I want to do is get things in order for a new year. If I can, and then obtain a good grad job, 2011 could be a good year.

I shall report back soon...