Bank of Scotland loan, £1K needed to pay off a credit card

rootdown

My account is with BOS - Ultimate Reward - for which I pay £12 a month for some reason, and £1 per day my account is overdrawn by more than £300. I also have a credit card with them for just under £1000. They've twice offered me a loan at the till to pay off my card, however have then told me that I don't qualify due to poor credit. (From having been late with a few card payments.)

Are there any alternatives out there? I'm paying both PPI and a hefty interest rate, so would like to move onto a lower interest rate as soon as possible.

Tixy

If your own bank are not prepared to lend to you you may well find it hard to get another bank to.

If you are in your overdraft regularly and have missed credit card payments then its quite likely your bank think you might struggle to afford the repayments on a loan.
And even if they accepted you the APR might not be any lower than on your credit card.

What do your credit files show? how many late payments do you have?
Are you in your overdraft every month?
Do you have any other debts?

What is the APR on your credit card? do you need the PPI? have you considered cancelling this (or cancelling it and looking for cheaper insurance from an independant provider).

Do you use any of the reward that the reward account gives you that you are paying £12 a month for? if not you could consider downgrading to a regular current account and paying that £12 towards your card each month.

How much have you worked out you could afford to pay a month towards this debt (if you could get a loan)?

rootdown

Tixy wrote: »

What do your credit files show? how many late payments do you have?
Are you in your overdraft every month?
Do you have any other debts?

What is the APR on your credit card? do you need the PPI? have you considered cancelling this (or cancelling it and looking for cheaper insurance from an independant provider).

Do you use any of the reward that the reward account gives you that you are paying £12 a month for? if not you could consider downgrading to a regular current account and paying that £12 towards your card each month.

How much have you worked out you could afford to pay a month towards this debt (if you could get a loan)?

I think I'll downgrade to a regular current account. That makes sense, as I don't use any of the benefits. Good advice, thanks.

Can I just cancel my PPI with the cards? Is that simple to do?

jason1231972

Even if you qualified, £1,000 loans generally come with reasonably high APRs (20%-ish not being uncommon). The APRs you may see advertised for around 12% and under are generally for loans over (and under) a certain amount - often in the mid-thousands.

So, any money you could potentially save may be realtively little. Concentrate on hitting the card as hard as you can with increased monthly payments.