I'm totally bamboozled - can anyone help?

greyville

I've had a credit card with Egg for a few years. Recently barclaycard took it over.

Interest rate: 29.9 per cent.

My new statement reads like this:
Previous balance: £3,212.49
Payments received: £105.38
New transactions: £96.64
New balance: £3,203.75
Minimum payment: £102.85
Payment due by: February 6

Here are my questions:
1. Why has only £8 been taken off the balance when I paid £105.38 - is it just interest?

2. What is the 'new transactions' referring to. I never ever use this card to pay for things.

3. Is there anything I can do to either lower my monthly payments or ensure my payments take more off the balance?

A little background:
Last January, I struggled to pay the £120 payments to egg so they agreed to let me pay £60 a month for six months and to freeze the interest in the meantime.

I'm trying to get a new card, but a relatively poor credit rating (though my bank told me last week that it has got a lot better over the last few months) means I can't get a new credit card with an interest rate that makes it worthwhile.

Any advice would be gratefully received. Please be as brutal as necessary.

Fruit_and_Nut_Case

greyville wrote: »

2. What is the 'new transactions' referring to. I never ever use this card to pay for things.

These should be itemised over the next page(s). Could be PPI payment, Card Protection, etc. Do you have any Continuous Payment Authorities that you've forgotten about?

Tixy

That looks like just the summary part of the statement - can you not see the detailed breakdown for the month?
If you've not used the card then its likely that the new transactions are probably just the interest for the month. Do you have any PPI on the account? If so it could be that and interest combined.

Can you not afford to increase your payments at all? Even if you just pay a few pound more a month that the minimum it will look better on your credit file and will clear the debt quicker.

Have you checked your credit file to see what shows on there? to see if it shows an arrangement to pay or a default or anything with regards to the egg debt. Do you have other debts?

Who have you applied to for a new card?

greyville

Yes they are

It reads:

Previous balance from last statement: £3,212.49
Payment by direct debit: £105.38
Card Repayment protection: £25.11
Interest on your standard balance (Interest 2.207%) £35.33
Interest on your cash balance (Interest 2:207%) £36.30
New balance: £3.203.75

greyville

Tixy wrote: »

That looks like just the summary part of the statement - can you not see the detailed breakdown for the month?
If you've not used the card then its likely that the new transactions are probably just the interest for the month. Do you have any PPI on the account? If so it could be that and interest combined.

Can you not afford to increase your payments at all? Even if you just pay a few pound more a month that the minimum it will look better on your credit file and will clear the debt quicker.

Have you checked your credit file to see what shows on there? to see if it shows an arrangement to pay or a default or anything with regards to the egg debt. Do you have other debts?

Who have you applied to for a new card?

I've posted the detailed breakdown above.

I can afford to increase the repayments by say £50 to £100 a month. This might seem like a silly question, but, say I paid £100 extra on top of the minimum repayment, how much of the £100 extra will go towards reducing my balamce?

I've not checked my credit file...is that the same as checking your credit rating, like with Experian?

The only other debt I have is a loan with HSBC. The loan was for £1,000. I'm currently in the process of repaying £1,100. I've paid four months off and have seven months left, so it's roughly £600 left to pay at £90 a month.

I applied to HSBC and Santander for credit cards last summer and was refused due to a poor credit score.

I met with an HSBC advisor last week and she said my credit score had improved but she advised me not to apply for an HSBC credit card until my HSBC loan had been fully repaid.

lisyloo

1. Why has only £8 been taken off the balance when I paid £105.38 - is it just interest?

Because although £105 was paid, £97 was spent on interest and insurance.

3. Is there anything I can do to either lower my monthly payments or ensure my payments take more off the balance?

You are paying high interest, can you get a card with a better rate or an overdraft?
Could you pay more off at all?
Do you need the £25 per month insurance?

lisyloo

but, say I paid £100 extra on top of the minimum repayment, how much of the £100 extra will go towards reducing my balamce?

All of it should, because you've already paid the interest and insurance.

I've not checked my credit file...is that the same as checking your credit rating, like with Experian?

It's not the same as checking your credit score which is jsut a made up number.
But it is the same as checking all your data with Experian/Equifax.
I'm not sure whether by "credit rating" you are getting a number or getting a file of data.

but she advised me not to apply for an HSBC credit card until my HSBC loan had been fully repaid.

You may have to wait 7 months until you can get a better card/rate, unless you can get a second or increase your income somehow.

greyville

lisyloo wrote: »

Because although £105 was paid, £97 was spent on interest and insurance.



You are paying high interest, can you get a card with a better rate or an overdraft?
Could you pay more off at all?
Do you need the £25 per month insurance?

I'm not sure about the insurance. If I lost my job, it would leave me with a bill that I wouldn't have the income to pay...but it is something to consider.

greyville

Tixy wrote: »

Have you checked your credit file to see what shows on there? to see if it shows an arrangement to pay or a default or anything with regards to the egg debt. Do you have other debts?

Who have you applied to for a new card?

I've just bitten the bullet and opened up a credit report account with Check My File.

The bayclaycard section shows green in the main but does have orange boxes with AR written in them for the six-month perioud last year when I had the arrangement in place to pay £60 a month.

It says:
Default Date: Not Defaulted

Rupert_Bear

greyville wrote: »

I've had a credit card with Egg for a few years. Recently barclaycard took it over.

Interest rate: 29.9 per cent.

My new statement reads like this:
Previous balance: £3,212.49
Payments received: £105.38
New transactions: £96.64
New balance: £3,203.75
Minimum payment: £102.85
Payment due by: February 6

Here are my questions:
1. Why has only £8 been taken off the balance when I paid £105.38 - is it just interest?

2. What is the 'new transactions' referring to. I never ever use this card to pay for things.

3. Is there anything I can do to either lower my monthly payments or ensure my payments take more off the balance?

A little background:
Last January, I struggled to pay the £120 payments to egg so they agreed to let me pay £60 a month for six months and to freeze the interest in the meantime.

I'm trying to get a new card, but a relatively poor credit rating (though my bank told me last week that it has got a lot better over the last few months) means I can't get a new credit card with an interest rate that makes it worthwhile.

Any advice would be gratefully received. Please be as brutal as necessary.

Wow apr 29.9%. I would be more concerned about the level of interest I was paying. My advice is get a loan or bt to another card.

greyville

Rupert_Bear wrote: »

Wow apr 29.9%. I would be more concerned about the level of interest I was paying. My advice is get a loan or bt to another card.

I agree, Rupert.

The problem is that if I apply for a credit card and am refused, then my credit score may go down and the chance of getting a card next time will go down.

Also, a balance transfer could end up costing me £300 in the short term anyway.