Unable to consolidate/get lower interest rates... please help!

helliesin

I have been unsuccessfully trying to either consolidate my credit cards, or switch to lower interest/0% cards. I get refused for EVERY application, despite having an immaculate credit history. I have never missed a payment or made a late payment on anything, I have full-time employment etc, and I have checked my credit file and it is all correct.

Whenever I try to get a better deal or consolidate I am told that I have 'too much borrowing'. Basically, my wage vs my repayments is adding up to me only being able to borrow anymore money with a repayment of £120 a month. But, I will be using any money I can borrow to repay my other borrowing, so that wont be the case! Ideally I want to be able to change my 2 credit cards to 0% cards. Failing that a personal loan to repay them, and reduce the huge interest rate that I am frittering my money away on! My income includes maintenance payments and tax credits, which apparently can't be considered as an income for these applications.

Does anyone understand what I mean?
And how do I 'beat the system' (for want of a better phrase!)?

Thanks for reading

Tixy

Hi

Unfortunately its common problem in the current climate. The issue is that lenders cannot be certain that you would use the new loan or card to consolidate existing debt, you might go out and spend it allm, or might pay off cards but then run the cards up again.

I don't know of anyway round it, other than to work on reducing your debts to a lower level and then possibly trying again for a 0% card in a bit.

Do you have any old credit cards that are still open on your credit files (ones you have previously paid off but not closed)? if so you could see if these would give you a promo balance transfer deal.
What cards and APRs do you currently have? You could also possibly try calling your card providers and asking if they will consider reducing the interest rate (this only works occasionally but might be worth a try), if you do this and they say know there is perhaps a slightly increased chance that they will rate jack your card. If this happens you need to opt out of the increase though this will prevent you from being able to spend on the card anymore.

Is there a big difference between your current card APRs? if so might you be able to slow stooze to move some of the more expensive debt to cheaper rates (depending on the balances and limits).

Aside from those suggestions its really just a case of cutting back where you can and working on paying as much as you towards your debts each month. Have you ever tried posting up a statement of affairs (income & expenditure) on here to see if people can spot places you can save money/get things cheaper etc so that you can pay more to your debts?

helliesin

I don't know of anyway round it, other than to work on reducing your debts to a lower level and then possibly trying again for a 0% card in a bit.

Aside from those suggestions its really just a case of cutting back where you can and working on paying as much as you towards your debts each month.

Thank you for replying Tixy. This is what I have been doing... was just clutching at straws that there may be a secret solution I hadn't thought of!

The advice about the old cards might be worth me looking into though- I think i saw a few that were paid off when i looked at my credit file! Will call Lloyds tsb and nationwide tomorrow and see if the cards are still open. I have already frozen the interest rates on my cards, which blocked me from using them... which is definitely a good thing! The rates were the same on both cards, if i remember rightly.

Thank you for replying! x

tangyfog

I got offered a pre-approved loan, at 20 percent! was that higher than your current apr?

tangyfog

I dont think there is a way to beat the system, when you hit the a limit of what they will lend you based on how much debt you have then your are pretty much stuck. However you could look at peer to peer lending such as zopa, they use to do listing which was pretty cool. but they drop it as the werent making enough money. Try googling for peer to peer lending.