What options do i have?

moneysaving_butler

Hello everyone.

I've just read the sticky about shuffling my debt over to better rate cards and as I only have one credit card my first option is I will call up my current card operator and see if they can offer me a lower interest rate. Fingers crossed.

I just wondered what might be the best other option to me, if this is not successful. My credit score is pretty poor but I want to start paying off my debt as I have more money to do so and can afford £150 per month. My current minimum payment is £100 per month.

Would a loan be better? Or apply for a 0% credit card? I've a feeling I'd be declined every decent loan and card offer that is visible on comparison sites. These always make me think i should apply, but then when i check to see if it's likely i will be accepted they all disappear and end up being offered ones with ridiculously high APR, which is no help to me!

I just want to start getting rid of this debt.

Tixy

What debt do you have?
What APRs are you paying currently?

You say your credit score is poor - what actually shows on your credit report? do you have a history of missed payments? defaults? CCJs? or what?

Are you employed and earning?
Have you actually tried to apply for a loan or card or just think you will be declined?

Cycrow

dont bother with a loan, with a poor credit rating, and little extra available each month, its unlikely u'll get one, and if you do, it'll be a pretty high rate.

a balance transfer would be your best option if you can get one.

if you cant, you just need to keep paying as much as you can to reduce the balance.

If your putting more than the minimum payments then the amount of interest will start to go down

moneysaving_butler

Tixy wrote: »

What debt do you have?
What APRs are you paying currently?

You say your credit score is poor - what actually shows on your credit report? do you have a history of missed payments? defaults? CCJs? or what?

Are you employed and earning?
Have you actually tried to apply for a loan or card or just think you will be declined?

Hello.

Thanks for the replies.

Current credit card is £6250. The interest rate is 22.4% APR (variable). I use Noddle to see my credit score. All my regular payments are met every month and I am not behind on any. I have had a couple of late payments over the last 6 months. No CCJ's or missed payments presently show. I have missed payments in the past but I am currently fully up to date on all my commitments.

I am full time employed and on a decent salary. Just got a new job for a higher wage.

I am also utilizing two overdrafts totaling £4000 but not going over their limits and very slowly these are reducing too.

I haven't actually applied to for any. I have used Go compare to check if I am suitable for any, just as a guide. As the good low rate loans cards that I checked vanish when i did this check i assumed the chances are pretty minimal that I would get them so didn't peruse any further.

I had Barclaycard offer through the post for 27 months o% on balance transfers. But I don't really know if my high balance is transferable to any card at all. Is it likely such a high balance is transferable to any new cards?

Cycrow

The amount you can transfer depends on the credit limit of the card you are transfering too.

but you dont have to transfer the compelete balance.

i would say its unlikly to get a card with a high enough limit to transfer it all. But any amount at 0% would help

then just keep up with the minimums and pay any extra to the remaining credit before starting to clear off the 0% credit

moneysaving_butler

Cycrow wrote: »

The amount you can transfer depends on the credit limit of the card you are transfering too.

but you dont have to transfer the compelete balance.

i would say its unlikly to get a card with a high enough limit to transfer it all. But any amount at 0% would help

then just keep up with the minimums and pay any extra to the remaining credit before starting to clear off the 0% credit

Thanks, you're right, I guess if I don't try applying i'll never know, and a small balance at 0% is better than nothing!

moneysaving_butler

So, I applied for the current Barclaycard, thinking I would be declined.

I asked for a balance transfer of £1200 hoping this might be the credit limit on the card to increase my chances of being accepted. I also thought having £1200 of my £6250 at 0% on the new card would be beneficial as i can start paying it off and decreasing my debt.

I was shocked when i was accepted and given a credit limit of £6000. This is great but I just want to ask if it's possible to transfer a larger amount from my current card to the new one, even though i have requested £1200 to be transferred initially.

I know there is a 90% limit on the new card. But having £5400 at 0% is what i wanted and I'd be gutted if i now can't transfer any more on to the new card. Is this possible? I'm just waiting for the card to arrive so i can register it. There is a section on the barclaycard website that says "balance transfer" but it's not active until i register, so i'm hopeful it will be possible.

This also proves that if you don't ask you don't get! I never thought I';d get to be able to transfer so much on my high credit on to a new card. I was wrong (i hope!)

Cheers.

Cycrow

as long as theres room on the card, then you should be able to transfer it over.

also remember to take the fee into account which will also be added to the balance of the new card

You-kip

moneysaving_butler wrote: »

So, I applied for the current Barclaycard, thinking I would be declined.

I asked for a balance transfer of £1200 hoping this might be the credit limit on the card to increase my chances of being accepted. I also thought having £1200 of my £6250 at 0% on the new card would be beneficial as i can start paying it off and decreasing my debt.

I was shocked when i was accepted and given a credit limit of £6000. This is great but I just want to ask if it's possible to transfer a larger amount from my current card to the new one, even though i have requested £1200 to be transferred initially.

I know there is a 90% limit on the new card. But having £5400 at 0% is what i wanted and I'd be gutted if i now can't transfer any more on to the new card. Is this possible? I'm just waiting for the card to arrive so i can register it. There is a section on the barclaycard website that says "balance transfer" but it's not active until i register, so i'm hopeful it will be possible.

This also proves that if you don't ask you don't get! I never thought I';d get to be able to transfer so much on my high credit on to a new card. I was wrong (i hope!)

Cheers.

Barclays are really generous with limits I've got a BC Visa & Mastercard from them and their limits are twice the size as my nationwide card.

moneysaving_butler

Well thay have really helped me out without even realising so thumbs up to them! :-)