Credit Card Chances

debtfreeby2013

Hi all,

I have recently been looking at my credit report and it is currently 'fair' due to several searches on my report about 2 months ago. When using the experian tool for using your credit report to match cards I had a list of several 0% cards that offer (typically) £1200. Problem is, I currently have £2973 left to pay on a credit card at 27.9% APR so £1200 would definitely not be enough plus, I don't want to risk more credit checks.

Anyone have any ideas of how I can sort this? Card balance at £2973 and the minimum payment is £67.70 but I am paying £150 a month but I calculate that to mean that it will take 2 years to get to £1200 balance where as if I could get a 0% card I could, in theory, have pretty much paid of the card within that 2 years.

It's slightly complicated as the card is in my dads name with me as a named card holder and all the debt on it is mine so it doesn't actually show on my credit report (I did say to my dad about changing it over but, to be fair, when I was struggling I anhialated his credit rating so it's about time he reaped some benefits of me being more sorted financially, lol).

debtfreeby2013

Or, is at all possible, if my dad phones the CC company they may lower the interest or is this just stupid question?

Do CC companies change interest rates if the customer does not pay on time or does not pay the full amount each month? I could have sworn the interest rate used to be 17.5% although I may be mistaken by this.

Tixy

The £1200 is usually just the figure that they use to base representative calculations on - not the amount you might be accepted for.

EVen if you do get a card for a lower limit than your current balance you could still transfer some of the debt over, some at 0% is better than none.

You can't change the existing card to go on your credit file - he is legally responsible for that debt so its correct to be on his file.

Make sure you don't apply for a card with the same issuer as the existing card, as if you do you won't be able to do a balance transfer.

Tixy

Interest rates are increased for various reasons - the account holder is always notified in advance and has the option to opt out of the increase (though that stops any further spending on the card).

It can be due to them perceiving the holder to be higher risk or can be just general economic climate.

It can be worth a call to see if they may consider a small reduction - occasional people report being offered a slightly reduced apr.

debtfreeby2013

Tixy wrote: »

The £1200 is usually just the figure that they use to base representative calculations on - not the amount you might be accepted for.

EVen if you do get a card for a lower limit than your current balance you could still transfer some of the debt over, some at 0% is better than none.

You can't change the existing card to go on your credit file - he is legally responsible for that debt so its correct to be on his file.

Make sure you don't apply for a card with the same issuer as the existing card, as if you do you won't be able to do a balance transfer.

I did wonder about doing a smaller amount at 0% but wasn't sure if that would benefit me (in terms of paying to 2 different credit cards, if that makes sense).

Also, thanks for the note on not getting it with the same company. I didn't know that. I currently have a barclaycard do they run any other cards? If they do run other cards then does this mean I couldn't get a different card that was run by Barclays (if that makes sense as well, lol)

debtfreeby2013

Tixy wrote: »

Interest rates are increased for various reasons - the account holder is always notified in advance and has the option to opt out of the increase (though that stops any further spending on the card).

It can be due to them perceiving the holder to be higher risk or can be just general economic climate.

It can be worth a call to see if they may consider a small reduction - occasional people report being offered a slightly reduced apr.

Thanks again. you are my fount of knowledge. On the basis of asking for a lower APR (doesn't matter if they stop the spending, haven't used the card for 3 years) as my hands are technically tied I (or rather my dad) surely doesn't have any leverage to ask them to, it's not like haggling with digital tv providers surely?

Tixy

Barclaycard only do barclaycard (but it was a sensible question, some issuers do have other branded cards).

debtfreeby2013

Tixy wrote: »

Barclaycard only do barclaycard (but it was a sensible question, some issuers do have other branded cards).

Ok, great thanks.

And one more question (sorry!) how reliable is the experian match thingy? If it tells me my report and information could get me a card with so-and-so at 0% typical how likely is that to be the case or would that vary from bank to bank?

Tixy

Well sometimes some lenders will reduce the APR, if they want to keep you (dad) as a customer and think he would likely to be able to get a balance transfer elsewhere. Whether they particuarly want to keep him as a customer, even at a slightly lower APR is hard to guess.

Tixy

Not sure about the experian match thing - haven't heard great things about it, but haven't used it personally.

Worth a shot to try somewhere at least.

debtfreeby2013

Thank you for all your replies Tixy. I really do appreciate it.