A little advice please :)

Slayerx

So as of the 1st Feb my 5k loan will be paid off.

Along with the loan I also have 3 credit cards.

The combined total is about £2800.

Given I've paid off the loan with no missed payments, will this help me obtain a credit card with a large limit to allow me to BT the 3 cards to one?

I was hoping to move them all to one or worst case have 2 cards running both with 0% on BT's.

I'm also going to make sure I ask the loan provider to update my credit file asap.

YorkshireBoy

Should help, but what are the individual limits and balances on each card?

Slayerx

Card one limit it 750 balance is around 600
Card two limit is 750 balance is around 700
Card three limit is 2k balance is around 1500

Halifax the 3rd card, do try to keep increasing my credit limit not sure if this is a good sign or not.

YorkshireBoy

Your utilisation is very high. You've maxed out 2 of the cards and your lowest utilisation, on your highest limit card, is 75% (you could increase the Halifax limit, but this may be fruitless if lenders score on individual credit utilisation as well as total credit utilisation).


This won't look good to prospective lenders, even with the loan paid off, but the impact may be lessened if you have a good salary, manage your bank account well and keep it in credit, and have other plus points such as stability in job/at address/with bank?

Slayerx

My Salary is only 16k, I've been with my bank for 10 + years have an overdraft of £500 but its there for emergencies only and I haven't used it for at least 3 years maybe longer.

I've in full time employment and have been with my current employer 2 years but I've only lived where I am now for 13 months.

[Deleted User]

Have you run the 3 cards through the Snowball Calculator, to see how quickly you can clear them, by adding the amount you were paying to the loan?

Slayerx

Thanks I'll have a look at that tomorrow.

[Deleted User]

Here you go.

http://www.whatsthecost.com/snowball.aspx

Slayerx

Thanks looks like it would take about 20 months to pay them off if I snowball the money from the loan.

Slayerx

Looking at my figure I can think I can get it paid off a little quicker.

Once I pay off the two cards with the lower balance, would if then make sense to try balance transfer at least some of the larger balance to reduce the amount of interest paid overall?

[Deleted User]

Where would you balance transfer it to?