Want to escape from high-interest credit card

jameshw13 · 6 January 2011 at 7:29PM

Hi all,

Long time reader but new poster. I got myself into financial difficulties a few years back and defaulted on some credit agreements - all of which I later settled (and 6 years is up next year so they'll come off my history - woohoo!)

A while later I got a Vanquis credit card to begin rebuilding my credit rating. I was disciplined and didn't use it for credit - just paid for things on it and paid the balance in full every month like you should.

Unfortunately last year I ran into problems and ended up spending quite a lot on the card. Current balance is approx £2400 and the interest rate is high. I am paying off £150 each month but it's a slow process because a lot of that is interest and therefore money down the drain and I can't really afford to pay much more than that. It's 2 steps forward, one back, month after month.

I have tried applying for a balance transfer credit card - no joy (I know, I probably shouldn't have bothered based on my credit history, I realise that now). According to Experian my credit score is 'good' but I'm sure still affected by the black marks in the form of 'settled' defaulted accounts.

Do I have any other option? Would a loan be better? Or can I do nothing other than tighten my belt and pay as much as possible off the card each month?

MFWannabe · 6 January 2011 at 7:51PM

Hi
What is the interest rate on the card? It may; in this case be worth talking to your bank to see if you can get a loan at a lower rate than the card. Also another option is do you have any overdraft on your bank account?

Robert_Roberston · 6 January 2011 at 8:50PM

Credit score is irrelevant according to many on here, it's each indvidual lender that her their own criteria, a 'score' won't come into it - that's decided by the agency - yours is good.

Perhaps check your credit file with each agency and ensure that things are closed off that should be and there are no errors?