From Credit Card to Bank Loan

loveandlight

I have a friend who has a credit card debt of £15k with Lloyds Advance and she wants to ask Lloyds who she banks with if they will put it into a loan instead so she will have a specific date when the loan will be paid off in full and her interest rate will then be much lower. Her credit card interest rate is 20.9% . It was originally at 11.9% but the bank kept increasing the rate.

Do you think Lloyds will agree to it considering she has a credit card with them already with no history of missed or late payments at all?

Tixy

They might convert it into a loan - although the APR might not be much lower than the card (as they'll just be costing themselves in interest they could make by refusing her).
Probably wouldn't hurt to ask and she goes into the branch they may be able to give her an indication without even doing a credit search.

If they refuse a loan and threaten to rate rise the card again is she now aware she can opt out of any rate rise? Have you checked with her that her last rate rise wasn't within the last 60days - and so still time for her to opt out?