How long will it take to rebuild my credit rating?

samantha.b.mcgregor

I got into £1300 debt on a credit card with an ex boyfriend who had no job (silly I know, but I was young and in love!). The card and account have been inactive for almost five years and I was under the impression that I had a Direct Debit set up to take the minimum payment from my account each month, as each month (without fail) an amount of about £50-£60 being taken from my current account each month and being paid on the credit card. In a discussion with my branch about a savings account recently, I discovered that there was no such direct debit and these payments were being taken to cover the costs of CHARGES for NON PAYMENT! As a result I checked my credit rating and it's not good. I have only two other 'debts' - a catalogue (which is active and I pay over the minimum payment each month) and a 0% interest student overdraft from back in the day (which I also pay into each month).

Anyway, I read in my MSE update this morning about the Capital One credit card with 0% interest on balance transfers for 7 months (up to Sept 2012) and was considering transferring the balance of my existing card to that one to try and pay it off. The problem is that I'm not sure if I will be able to pay it all off and the interest rate post-0% transfer is a whopping 34.9% apr!

Would my credit rating be sufficient after 7 months that I could transfer the remaining balance to another card (on 0% interest) to finish paying it?

I'm determined to be debt free asap but at the moment there seems like no way out! Help please?

Tixy

What is on your credit file in relation to this existing credit card debt? Does it show on your file? does it have a default recorded against it.

You might still struggle to get even the subprime captial one 0% card with an unpaid default on your credit file. As to whether your file would be better in 7months it depends on what shows on file and how old the default is (if there is one).

Is the current credit card with your bank? or another bank? Have you been receiving statements in relation to the credit card? how much do you owe on it? are they still charging you interest?

samantha.b.mcgregor

Thanks for replying! It is on my file but it doesn't actually say anything other than the amount (I don't think!) There wasn't a default recorded, but I know from communication with the bank that it's with their Collections Centre.

And yes, it's with my bank (the one I have my current account with but NOT my student account with the overdraft). My current account has an overdraft of £100. I haven't received any statements or letters of any sort as the account is inactive and I don't even have a card for it, although the bank says there are letters recorded by the Collections Centre as having been sent to my current address. They are still charging interest. I wrote and asked to have a payment plan set up (and for them to freeze interest and charges) almost two months ago and have had no communication from them since.