Help with juggling finance and sorting loan

Whitti_uk

Hi everyone,

I currently have credit card debt of £15,500. I used to juggle between 0% but a new engine in my race car last year after it blew before final meant I loaded card to a point they couldn't switch around due to varying limits on the 3 cards.

I've now sold the 2nd car and have cash to clear all my debt but want to refinance sensibly to then jump in a new car I have my eye on.

I have an MBNA CC with £6,500 on and an £8k limit. Interest will be 19% but currently offering me 0% on transfers

I have a Barclaycard with £5,700 and a £11,100 limit. Interest is 29% and usually offer 0% but haven't in alittle while.

Finally I have a Natwest card with £3,300 and £3,500 limit. Interest is 19% but again 0% offered alot.


What I was planning to do is pay the MBNA card off, and throw all of Barclaycard and some of Natwest card to it at 0%... £8,000 in total. I was then hoping to get a loan for £8,000. I could pay the Natwest one off but then loan would have to go up.

Now I've checked on Noodle and I'm rated at 3/5. Only defaults were admin errors.. 2 of them late back in 2010 and other in early 2011. Perfect since though. I am also not on electoral roll as I HD a business go down and a bank tried to screw me over being a guarantee when I was limited... Long story but they chased, we fought back and then heard nothing but don't want them to randomly have a last ditch attempt to chase when I have under 2 years to be clear of the 6years. I live with my finance and we have a house although we sorted it in her name.

I have tried the two peer-to-peer lenders and one refused and the other come back with 18% interest. So no good. I'm worried that once I clear cards I will have no way of sourcing a fairly low rate loan. I have a store card I don't use but will cancel tomorrow and I could ask for Barclaycard loan to be reduced or maybe I could even cancel it but it is useful for that to stay there so in a years time the £8k can move to that with 0%.

Which companies are best to apply for loans in my position? I was thinking to speak to my bank Barclays as I have a personal and business account with them, see if they could check my eligibility and forecast best move to make to be more attractive to lenders. I also have a business account with Santandar and could see about a business loan? As I could make out car is an advertising part of business?

Any thoughts from you guys? New car I am eyeing up should be ready January-February

retepetsir

Could you not pay off all your debt and then NOT buy a new car, i.e. no further debt? It sounds like you want an 8k limit plus an 8k loan - 16k???

Whitti_uk

I could do but I am comfortable paying the money and have an asset that will pick up in value sat in garage.

heartbreak_star

Become debt-free, then buy car. More debt is not the way forward, especially as you've maxed out your cards by the sounds of it...

Sorry if that's not what you wanted to hear.

HBS x

Whitti_uk

Not sure where the 'more debt' and 'maxed out' has come from. I have £7,500 available on credit limits although ofcourse would be silly to use up that.

I'm not looking to have more debt?? It will be the same as I owe now but £8k on 0% credit card with the other zero'd card ready to take on 0% in a years time. And I would hopefully have an £8k loan. I've got the £16k now to clear all debts but want another car which I will make money on when I come to sell.

mcpitman

If Natwest offered 0% for 12 months and you shifted 8k into that account, why would you want to clear this with an interest bearing loan?

Also on a side note, what car and what racing (I'm not a naysayer, just a motorsport enthusiast).

Whitti_uk

I just want £8kbto be structured payments as a loan at a low rate and then £8k left to flick between cards at 0%. The Natwest card is £3,500 limit so wasn't sure if just clearing that and leaving that and Barclaycard open is best to get loan. Maybe cancel Barclaycard? I just want to make myself more attractive for the loan

I had an Evo 6 TME but fully forged engine; £4.5k 2 way JRZ race suspension and loads of other goodies. Used to do the MLRSS sprint series. Now looking at a Porsche Cayman S... A friend of mine works at porsche and has one in mind that is at a steal of a deal to make alittle money on when I come to sell it. Want to climb porsche ladder. My businesses are coming on well

mcpitman

Sounds like an expensive hobby... lol.

RE Finances;
What capital will be used to pay off the MBNA Card?

Whitti_uk

Just paid off MBNA with some cash from car sale. So I'm now going to shift the other cards debt over to it... So I then have £8k on MBNA at 0%, will have Barclaycard clear and will have a small amount left to pay on Natwest to clear it which I can do with car money still.

I'm then left with £8k nearly in cash left and £8k in credit card. That's where the £8k loans comes in... Or possibly just £7k. So I can get the Porsche I want at £15-16k at a steal. With me no longer sprinting I should save a fair amount of money from entry fees, fuel, breakages etc and hopefully sourcing funding for the car correctly will mean monthly payments are down also

Not sure whether to cancel any credit cards I clear to help with loan? Although ideally want to keep them to switch between and save the Natwest for emergencies. Maybe I could ring Barclaycard and have the £11k limit brought down to £8k

Would all this help get a loan?

TriathNanEilean

Surprised no one else has mentioned it so far - not being on the electoral roll is likely to be a barrier to you getting new loans. Your existing lenders know about you so they should be fine but new lenders might either decline or else offer a higher rate than otherwise.