Can unemployed apply for 0% cc ?

fantastiyk

I have some cc debt £2400 and £400 on 2 cards. Both are charged interest. My partner lost his job and my self employed work has almost dried up. Is it possible to apply for a new card with 0% interest while receiving benefits?
I didn't think it was which is why we haven't looked into it before. But we are paying a lot in interest and I've been wondering if there is any way of getting the debt cheaper.
We haven't had any defaults or late payments, but are finding it getting tighter financially to live.

tomsco

Yes, you can apply......





.....but you will most likely be declined.

fantastiyk

That's what I thought.
but better to ask a question rather than pay interest I mightn't have had to.
Thank you for your reply.

BugsyBrowne

You haven't got defaults just yet but getting a credit card with no income you might just end up with them.

Anthorn

I think probably a better way would be to look into the near future and decide whether you will be defaulting because you cannot afford to pay. It's better to ask for lower interest and lower payments according to your circumstances while you are still making the payments than later after you have missed one or more payments.

fantastiyk

BugsyBrowne wrote: »

You haven't got defaults just yet but getting a credit card with no income you might just end up with them.

Perhaps you misunderstood my post - I had a very good income when I got my credit cards. I wasn't looking for one to spend on. We just want to reduce the money we're paying on interest. We weren't planning on spending.

fantastiyk

Anthorn wrote: »

I think probably a better way would be to look into the near future and decide whether you will be defaulting because you cannot afford to pay. It's better to ask for lower interest and lower payments according to your circumstances while you are still making the payments than later after you have missed one or more payments.

thank you Anthorn. That sounds like very good advice. I didn't realise I could ask for lower interest and lower payments. I'll look into that.

CLAPTON

fantastiyk wrote: »

thank you Anthorn. That sounds like very good advice. I didn't realise I could ask for lower interest and lower payments. I'll look into that.

be very very careful

asking for lower payments and lower interest because you are struggling to pay may well be seen as a default or an 'arrangement to pay' and will trash your credit file.

unless you are really about to default I would not go along that path.

one really needs to know the full details of income and spending to offer advice.

bengal-stripe

fantastiyk wrote: »

I wasn't looking for one to spend on. We just want to reduce the money we're paying on interest. We weren't planning on spending.

That might be your intention today, but whether or not you will stick to it, is something nobody can be certain about.

In your current situation with existing debts and virtually no income, there is a possibility that you will run up more debts, just to make ends meet. After all, you cannot know, for how long your current financial low will go-on for.

No lender is likely to take that risk.

guesswho2000

You can apply, worst that can happen is they say no, a search on your report will only have a minor negative impact and only for the short term.

However, think very carefully before taking more credit on (if offered it), if you miss a payment on a new 0% offer you'll lose it, but if you're sure you won't, and you're sure you won't be tempted to spend extra on these if you get them, it's worth an application.

Acceptance is a big question mark on benefits, but benefits are income so some lenders may accept these.

Also bear CLAPTON's advice in mind, AP markers will stay on your record for years if you head down that route, although they're better than a default or, god forbid, a CCJ!

Anthorn

CLAPTON wrote: »

be very very careful

asking for lower payments and lower interest because you are struggling to pay may well be seen as a default or an 'arrangement to pay' and will trash your credit file.

unless you are really about to default I would not go along that path.

one really needs to know the full details of income and spending to offer advice.

My point was "... decide whether you will be defaulting ..." As earthquakes give early warning signals in the form of tremors, so does defaulting. We can either pre-empt the missed payments, demands and final demands with an arrangement or we can go the whole hog. Lastly an arrangement to pay on a credit report is vastly better than a default! It screams out that you've hit on hard times but you're dealing with it.