Payment Arrangement with CC will it affect my credit score?

skintchicken

Hi

First post so please bear with me!

In summer of 2010 I was struggling with cc repayments to Lloyds as I had not had steady work and was earning less so I called them and they put me on reduced payments for 6 months. After 6 months I was still not quite back on track so they let me do it for another 6 months, this will end in June and I will have to start making the full minimum payment.

How badly would this have affected my credit score?

I've moved banks so that my debt is not with the place where I bank and am really trying to keep on track with everything. Eventually I want to apply for 0% balance transfer card for my credit cards but not sure how long I need to wait after this agreement ends.

Any advice appreciated

Thanks!:undecided

izools

This will adversely affect your credit score. It will be recorded as an "Arrangement to Pay". You'll have no chance of getting mainstream credit whilst the card is in the arrangement, slim-to-nil within six months of coming out of the arrangement, mediocre chances 6+ months after coming out of the arrangement, and it should have little effect after 1 year of maintaining proper payments so long as you pay on time, regularly, above the minimum, and keep your accounts WELL under their limits.

Arrangement to Pay isn't likely to affect your ability to get things like a Biritsh Gas account or mobile contract, might have a small effect on your ability to get a bigger overdraft, but a much bigger impact on your ability to get a credit card, loan, or mortgage, unless you go to a sub prime lender.

But like I say, maintain payments well over the minimum on all your accounts, keep their balances well under their limits, and never be late, and after a year of doing this you shouldn't see any grave impact on your credit worthiness.

skintchicken

Thanks izools

That's a bit worse than I had anticipated I thought 6 months would see me right... oh well will have to stick with it.

Thanks

izools

But then again why would you be considering applications for more credit so soon after digging yourself out of a hole created by it?

skintchicken

I'm in a lot of debt and was thinking that if I could at least consolidate my credit cards onto a 0% balance transfer card I could make more of a dent in paying off the balance rather than 3 lots of interest at different rates

izools

That's fair enough and TBH it's not my place to judge or comment either so sorry :P

Lol but yeah, try for a Sygma Creation card six months after coming out of the Arrangement to Pay and you could be fine - they actually accepted my mother for a £2,000 limit 15 months 0% whilst her barclaycard was still IN an arrangement to pay - but then again she had a plethora of other accounts dating back to 1981 which she'd literally never missed a payment on, Barclaycard AP was a bit of bad amisdst a sea of perfection

Good luck!

skintchicken

No apology needed!

Thanks for that may be worth looking into