how does freezing credit card affect credit score?

ehelps

My OH has £7000 of credit card debt which he is struggling to repay - he just about makes the minimum payment so the interest just mounts up and the capital never reduces.


I want him to negotiate freezing the interest but he is worried this will affect his credit rating - does anyone know how long for? his preferred way of dealing with it is for me to get out an interest free credit card to transfer the balance onto so he can pay it off over time - but presumably that could affect my credit score? (esp if he failed to make the repayments leaving me to pay it off!) any advice appreciated!

PeacefulWaters

Freezing interest would, most likely, show negatively on his credit file.

Negotiating a lower rate as a "loyal customer" would look better. But expect 12% or more.

I'm sure he'd love to transfer the debt into your name. Don't!

chattychappy

ehelps wrote: »

My OH has £7000 of credit card debt which he is struggling to repay - he just about makes the minimum payment so the interest just mounts up and the capital never reduces.


I want him to negotiate freezing the interest but he is worried this will affect his credit rating - does anyone know how long for?

I believe it will be for 6 years... it will be an arrangement to pay. Others will know more about this. For the particular lender concerned, they might keep the information for longer.

ehelps wrote: »

his preferred way of dealing with it is for me to get out an interest free credit card to transfer the balance onto so he can pay it off over time - but presumably that could affect my credit score? (esp if he failed to make the repayments leaving me to pay it off!) any advice appreciated!

There is no real score as such. Taking on more credit (if you can get it) may or may not be detrimental in the eyes of other lenders. I wouldn't let the "credit rating" tail wag the "credit rating" dog in this regard. However it will be your debt. Doesn't matter whether you make the payments or he does, if you miss them then your record will be impacted. If you do this, there some "health warnings":

1) the debt WILL be yours. So you will have no recourse to OH, though it is possible to sign a legal agreement which COULD mean you could sue OH, assuming OH is worthing suing.

2) by clearing OH's debts, will OH simply run up more debts?

3) will this affect your relationship?

But if you can get past the health risks... well this could be the most sensible way of dealing with the matter.

ehelps

Thanks both. I do worry he will'll fail to pay me back, and I worry with acces to credit again I'll come home one day & find a new sofa cos the minimum payment is only £20 a month.....but paying all that money in interest is equally a total waste. Lesser of 2 evils (assuming I want to spend the rest of my life with someone who can't make sensible financial decisions!)

nicholaswitchell

ehelps wrote: »

(assuming I want to spend the rest of my life with someone who can't make sensible financial decisions!)

He sounds like a loser.

Get rid.

Candyapple

What card does your partner have the debt with?

Does he have any other cards he could use to do a 0% balance transfer to? If he has a poor credit rating, he could look at getting one of the cards recommended here: Easier-to-get balance transfer cards for poorer credit scorers