Trying to sort myself out with card debt

Digi59

Hi, I was unemployed for over two years, and have a Virgin mastercard with just under £3000 on it. Since losing my job, I have only been able to pay the minimum amount off, which is set up as a direct debit.

A few months ago, I rang Virgin, having received a letter saying that if I was having problems with monthly payments, I could discuss it them and they would try to help. The help was a payment plan that would affect my credit rating for 6 years. I refused, as I was just starting to run my own business and did not want any negatives on my credit file, and I said that I would do what I could to continue the payments, which had never been missed. A couple of weeks later, I received a letter saying that my card had been restricted and I was to cut it up and not use it again. Would this have put a negative on my credit file?

Anyway, I am pleased to say that I recently started a new job, and I am looking into ways of getting this paid off as quickly as possible. To avoid the huge amount of interest on this balance, I have considered getting a balance transfer to a 0% card, but what is the usual limit you are given on these cards?

Thanks for any advice.

jonesMUFCforever

Check your credit files - I suspect that they have put an arrangement to pay on there - which if so will affect your credit score.

Digi59

I have now requested a copy of my credit file, the £2 one, from experian, so we'll see, but I did decline the arrangement to pay that Virgin offered, so as not to put a negative on my file, and said I would continue to pay the minimum till I could sort out paying more. The guy I spoke to must have reported my situation to someone, who then decided to restrict the card, even though it had not been used since losing my job.

I have taken out some insurance for my business, since the card was restricted, which has been approved to pay in installments, so I am thinking that if I did have some bad report on my credit file, this would have been declined. Possibly...

We'll see what the report says. The possibilities are a 0 percent new card, if the limit offered is high enough, but I won't know until I've applied, or a lower rate for life of balance if I can get one of those, or my own bank approving a credit limit increase and balance transfer on their card, on which I have no balance, but the limit was cut to £1500 a while ago due to having not used it for some months, being unemployed. The question in the latter case would be the interest rate they would offer, but I read the credit card shuffle info here and I have asked the question of them and await their reply.

happy_bunny_2

If the have put an arrangement on there make a complaint to get it removed.

Digi59

I will certainly do that if there is anything negative on the report! I am thinking of calling them to have a word. Can't wait to get my hands on that credit report, which should be in a couple of days - just waiting for the pass code to be posted. I made it clear to Virgin that I did not want a payment plan with the resulting negative placing on my credit file.

Digi59

Decided to call Virgin, and they report that the card restriction has not put any mark on my credit report, and as I have continued to make the minimum payment without defaulting this has also worked in my favour. He could also see that as soon as I got my first payday, I made an extra payment, over and above the minimum that had been taken via DD.

If I don't get a good BT rate from my bank to the credit card I have with them, and an increase in the credit limit, I will have to try the new card route, but what is the likely credit limit I will be offered? I have tried the 'soft search' tools and it appears from the brief questioning they do that my credit rating is very good, which is a surprise.

The other stumbling block is which card, as the Virgin one I have is also MBNA! I don't earn enough for the Barclaycard.

Digi59

Tried Nationwide to see if I could get a 0% BT card there, as we have our mortgage with them, and my husband's personal account and a joint account. From the phone call, I was told that I would be eligible for a 'select' card with 20 months BT at 0% APR, along with 12 months 0% for purchases, and a host of other benefits, and that the amount I needed to transfer would not be a problem, so it looks like I will be going with that option. Just need to make sure that this is not going to change once I accept the offer.

Digi59

Update: Received the credit report, and couldn't really make out anything untoward on it, so that was a good start. Didn't hear back from my own bank regarding a BT on a low rate to my existing credit card (with zero balance), so put that on the fail pile. Continuing on the new 0% card trail, I did manage to get the Nationwide Select card, with 20 months at 0% balance transfer, and a high enough credit limit to take the balance transfer from the Virgin card and have some spare to take account of the fee and some extra for spending (not that I will be, even with 12 months 0% on that). Result!

Card arrived yesterday - just about to get that horrendous balance transferred, saving me hundreds in interest. Happy Bunny!!