Credit Rating

Sagebush

Hi,
I have two large credit card debits which I am managing to pay off slowly by meeting the monthly minimum payments. They are slowly coming down but it feels like an endless battle. What would happen if I tried speaking to the companies involved to arrange either a better rate of interest or something to try and keep on top of it without falling behind with payments? Would it affect my credit rating as soon as I make the call? And will it affect my mortgage?

[Deleted User]

as soon as you agree a repayment program then it will affect your rating probably for years,it shouldnt affect a current mortgage but would a remortgage or new mortgage

Curr946

Basically, your credit file will show an arrangement to pay, rather that satisfactory. This WILL have an issue on any new applications, and can effect existing borrowings IF a current lender decides you now pose a risk. IE they may increase rates, closures account and remove / reduce limits.

If your a home owner etc, could you not try and get a 0% card? If your struggling you may want to get some debit advice from CAB etc

Tixy

Worth phoning them up to ask 'can you improve my APR', that alone won't affect your file and they may make a commercial decision to reduce your interest rate.

If they you a period of say 6months interest free, or if you ask to pay less than the minimum then that will affect your file, as it most likely be will be marked as an arrangment to pay.

Can you not afford to increase your repayments at all? even just paying £20 or so more than the minimum will significantly reduce the amount of time it will take you to clear the cards.

Sagebush

Thanks, that all makes sense. Will try and pay off a bit more each month for a while and see how things go. Do want to try and remortgage soon so don't want to make things harder with getting a mortgage.

Thanks for all the advice.