advice needed on loan for poor credit rating

deb788

My partner is looking for a loan to consolidate two credit cards with a balance of about £6000 in total

He had a tough time a few years ago and was made redundant twice which resulting in him missing a few payments ,

he is up to date now and has been running his accounts fine for about a year but his credit rating is not great

has anyone got any advice of where to try for a loan to pay off these cards ? at the moment he is paying just the minimum payment on his cards so they are never going to be paid off . at least with a loan after the term of the loan it will be paid


thanks in advance

lynzpower

why a loan?

Surely it would make more sense in paying the cards off qucker, or moving to a low life of balance card?

michael1983l

lynzpower wrote:

why a loan?

Surely it would make more sense in paying the cards off qucker, or moving to a low life of balance card?

i think i can answer this question, talking from my own experiance here if money is a bit tight the first thing i used to do was pay minimum payment on my credit card hence the balance never went down. But when I moved it to a loan it was a set ammount each month that i now saw as an essential payment so it always got paid.

I think moving credit card debts to loans just removes temptation. Providing you close the credit card accounts at time of paying them off.

deb788

exactly ,also you know the date it will be fully paid cos you know how long the loan term is

piggeh

It's more money though. Surely you can just set a DD to take £x amount out of your bank each month, rather than just the minimum cc payment? Transfer to zero-balance card, then less interest and fixed payments, and you will still know when it finishes.

Phoenix79_2

If his credit rating isn't great then he is unlikely to get approved for 0% BT or LOB cards is he?

First place i would ask for a loan is his own bank. They will know his financial habits more than anyone.

Crazychik

My dad told me, yrs ago, in order to help reduce his store card limit and payments, every so often, he would ring the company up, and ask to lower the spending limit, example - if the credit amount was for £1,000, he would get the payment down to £900, and then ring the company and ask to reduce the limit to £900, same again when it got to £800, and so on, apparently everytime you lower your limit, its de-creasing the interest rate also - if you know what I mean.

Ive never had to do this, but my dad is sound on advice.
HTH.

Phoenix79_2

I've never heard that one before. How would lowering the limit reduce the interest?

Crazychik

Phoenix79 wrote:

I've never heard that one before. How would lowering the limit reduce the interest?

Apparently, its something to do with the less you owe. The less the credit limit, the less interest is charged! He did this with his "Dixons" store card.

icklejulez

I believe in changing debts into a loan only if you remeber to cancel the existing credit card. Its so tempting to spend on it and once you've done it you'll do it again. I believe in managing my debts so personally a loan for me is better. Im not sensible enough 24hours a day to be trusted with the cash that should be paying off a CC. which is why we got in amess originallly. I have learnt my lesson and am tying my money down so i know i have none to spend.

in-trouble_3

we got a loan to pay off debts, kept the credit cards has well, and now we have the loan and paying off credit cards has we used the credit cards again stupid i know. , i will never do that again.

if you have a bad credit rating getting a loan with a very loan interest will be impossible, and will probably get a very high interest loan, is it worth it?