What is my best option?

bambos

Pepperoni wrote: »

My theory is (how reliable that is I have no idea...) that I will be without the loan which was originally for 8000... Meaning that I have that 'available' again on my credit if that makes sense?!

Yes paying off said loan in full will improve your credit rating but by how much I have no idea. When we paid off our CC in full we only saw a small improvement in our credit ratings but a loan might be different.

Pepperoni

My credit rating is good. I've never defaulted but I don't recall whether our mortgage was taken out before / after the loan / CC so that might impact it. I'm due to go on maternity leave in a few months too. I've taken that into account with the £3000 I said I could add to paying the debts off, and ill be able to keep up with paying £250 towards one of the debts each month during my maternity leave in addition (which keeps up with loan repayment and overpays on CC min payments). I don't know how that will impact an application for CC - I had planned to just apply before my monthly income went down.

[Deleted User]

Pepperoni wrote: »

Thanks. No, won't be able to pay the CC in full. Should be able to put £3000 to it but that's about it by October.

So, when the 0% expires, you will have around £3,250, at an APR of 17.9%.

That sounds like it could get expensive, if you can't get a 0% BT.

With the loan paid off, how much, per month, will you be able to put to the CC?

Pepperoni

Yes, that's right. It's a risk that perhaps is not worth taking.

thefrugaltrial

I meant that a new card will show up on your credit file history. It won't necessarily give you a 'bad mark' but if you already have a lot of credit and your use of it is high, another card is going to make it look like your desperate.

thefrugaltrial

Yeah, not convinced is telling you the truth! Unless your interest rate in savings account outweighs the loan interest?