Credit Card Confuzzled!!

crazychipolata

Helloooo! I'm a newbie to the site, but was wondering if anyone has any advice..?

My fella has a credit card debt of £10k, and a god-awful interest rate of 27% which he has just been informed is about to rise to 29%

He applied to transfer the whole balance to a MBNA long-life low-interest card but was declined. Would this be because he was trying to transfer the whole amount? He never misses any payments, and is on the electoral role and on a fair wage.

Would it be ok for him to transfer a smaller amount on various cards? or ask barclays to convert the CC to a loan??

Any advice would be very much appreciated!!

Thanks in advance

xxx

grumbler

crazychipolata wrote: »

He applied to transfer the whole balance to a MBNA long-life low-interest card but was declined. Would this be because he was trying to transfer the whole amount?

Unlikely. If it were the case they would have offered him a smaller credit limit.

He never misses any payments, and is on the electoral role and on a fair wage.

There are many other important factors like his income, available credit, used credit, stability.

Would it be ok for him to transfer a smaller amount on various cards?

Yes, it would if he is accepted.

or ask barclays to convert the CC to a loan??

He can ask, but every credit application results in a credit search recorded in his history. See MSE article and pay attention to 'rejection spiral': Credit Ratings

Any advice would be very much appreciated!!

Reject Credit Card Rate Hikes

crazychipolata

Thanks for the reply Grumbler... what do you think is best? to transfer a small amount every few months to a new low (or ideally 0)% card?

We just feel a bit overwhelmed by info

I think his credit score must be good, he had finance on a car not long ago!

BugsyBrowne

Before you do anything check your credit reports from Equifax & Experian and please ignore those scores they try and sell you.

Any adverse would be seen as high risk.

noh

crazychipolata wrote: »

Thanks for the reply Grumbler... what do you think is best? to transfer a small amount every few months to a new low (or ideally 0)% card?

We just feel a bit overwhelmed by info

I think his credit score must be good, he had finance on a car not long ago!

If he has £10K debt on a credit card and a few £K debt on car finance it is probable that his debt to income ratio is too high for many of the credit card providers liking.

crazychipolata

BugsyBrowne wrote: »

Before you do anything check your credit reports from Equifax & Experian and please ignore those scores they try and sell you.

Any adverse would be seen as high risk.

Thanks Bugsy.... think we will request the £2 one?? Used up the free trial ages ago :think: xx

crazychipolata

noh wrote: »

If he has £10K debt on a credit card and a few £K debt on car finance it is probable that his debt to income ratio is too high for many of the credit card providers liking.

@Noh.... ahhh I see what you mean, multiple cards is going to be a big no-no then isn't it? (read the credit card spiral article earlier).

Thank you for your help guys! feel a bit clearer now! :j

xx