Advice RE: Suspended Credit Cards

jock23

Hi,

I have about 6 credit cards that I am currently paying off, none of which I use anymore. They have balances on the ranging from £900 to £2500. I am comfortable paying just above the minimum payments on them all but despite that my credit rating is absolutely shocking, despite no missed payments in the last 24 months.

4 of the cards are currently suspended at my request due to the card companies wanting to increase the apr on them. This was done at least 18 months ago.

I have just looked and one of them has 2.5k credit space on it, so I was wondering if I would be better seeing if I could get it re-opened and transfer one or more of my other cards onto it. This would mean it wouldn't look like I had 2.5k credit available to me and would completely close my other cards down.

Would this look better on my credit rating, or am I best leaving as it. I am concerned that the amount of cards and the amount of essentially "available credit" is keeping my credit score at such a low mark.

Thanks for any advice!

ppc1

jock23 wrote: »

Hi,

I have about 6 credit cards that I am currently paying off, none of which I use anymore. They have balances on the ranging from £900 to £2500. I am comfortable paying just above the minimum payments on them all but despite that my credit rating is absolutely shocking, despite no missed payments in the last 24 months.

4 of the cards are currently suspended at my request due to the card companies wanting to increase the apr on them. This was done at least 18 months ago.

I have just looked and one of them has 2.5k credit space on it, so I was wondering if I would be better seeing if I could get it re-opened and transfer one or more of my other cards onto it. This would mean it wouldn't look like I had 2.5k credit available to me and would completely close my other cards down.

Would this look better on my credit rating, or am I best leaving as it. I am concerned that the amount of cards and the amount of essentially "available credit" is keeping my credit score at such a low mark.

Thanks for any advice!

If the card in question is one that you had already oted out of the price increase, then it willl not be able to be re-opened. If by some amzing chance the provider said yes, they ould most certainly increase the APR, and they would be unlike to give offers on the card.

When you chose to opt out of the increase, the card provider agreed to maintain the current rates until such times as you pay off the card in full, it is then officially closed.

aleph_0

So, I assume you might have paid experian/equifax for their magic scores. Don't. There is no universal score, each lender have their own criteria (so to answer one of your questions, one lender might care about available credit, others might put more weight on what percentage of your credit you are using). However, do sign up to http://noddle.co.uk/ where you can see your report for free, and make sure it's accurate. Make sure you're on the electoral roll

As to why new lenders might not be interested in you - if you're carrying balances on several cards, and only paying about the minimum repayment, that would suggest to someone looking at your report that you can't afford to service more debt.

I'd suggest working on reducing the debt, by paying more than the minimum payment on the highest APR card might be the best plan, and not to worry about available credit at the moment. It would also be worth using per-eligibility tool to check if it's worth applying for a 0% balance transfer card, just in case.

jock23

No I don't use experian, just noodle and they have me at 1/5 score.

I have applied for and been rejected for loads/0 percent cards so I am not applying for anything else in the next 6 months, but I just feel a bit trapped in a vicious circle. Ideally I want a low rate loan/card to pay everything off and get cleared asap.

YorkshireBoy

jock23 wrote: »

I have applied for and been rejected for loads/0 percent cards so I am not applying for anything else in the next 6 months, but I just feel a bit trapped in a vicious circle. Ideally I want a low rate loan/card to pay everything off and get cleared asap.

Many (most?) lenders now report to the CRAs that you're only making the minimum payments (and hence would appear to be struggling with their debt...of course such customers could also be lazy, in which case they'd be looked upon as very good customers indeed!).

I'd suggest, going forward, you make min plus £1 payments to all cards, and anything extra should be thrown at the card with the highest APR.

jock23

Currently I am round up to the nearest £5 over the minimum payment, but then keeping the highest APR at the same level. Once the payments drop a little bit more I will be looking at setting them at a level and sticking with them.

Is this more likely to help my credit score more than moving stuff about?

aleph_0

jock23 wrote: »

Is this more likely to help my credit score more than moving stuff about?

I agree not applying for any more cards at the moment is a good idea. I still think you're asking the wrong question though. It seems that you can't service more credit, which is why you're getting declined. So your first priority should be working to pay down the high-APR credit cards. I'd suggest you're better off looking at ways to make your income go further, and possibly ask the people on the Debt-free wannabe board for advice.

jock23

The last thing I want is more debt, i just want to pay my debt off as quickly as possible. Ideally that would be with a low rate loan, pay all the cards off and get rid of them, then have the loan paid off in 3 years easy. The way I am going just now is taking too long.

CLAPTON

what exactly do your credit files actually show?

how much is your total debt

how much is your income

are you on the electoral roll

lynz68

As you have already been rejected for 0% cards your likelihood of getting a loan is slim. It may well be best to target the card with the highest interest and make an effort to pay as much extra as you can. Possibly think of ways to make more money specifically with the aim of paying your debt off.

Unfortunately while it may seem simple to you to get a loan to pay of your cards then the loan itself the lenders have a completely different opinion and sometimes we just have to live with that. I have been in a similar position in the past. I had five cards and not making much of a dent in the balances and would probably be still in the same situation if it was not for a sheer stroke of luck. I have learnt from my mistakes though and will never get into that situation again it is soul destroying.

It may not be what you want to hear but unfortunately it is reality it may be more of a lifestyle change you need to make. There is a calculator tool on this sight somewhere that works out how long it will take you to pay of your credit cards have a look at that even small changes can make a difference on how long it will take you to pay back.

Good luck.

jock23

Credit files don't show anything that isn't there.

6 credit cards
1 car finance

Total debt is £13kish, income is 1700 a month after tax. Yes I am on the electoral roll.