Loan to consolodate credit card debt

Thrugelmir

Jamesie1 wrote: »

I have no issue with them paying the lenders however what can they do to force me to close the accounts after they have been paid? I would close two of the cards but I am looking to get a mortgage in a year or two and closing all lines of credit will have a negative impact on my scoring.

There's nothing positive in having lines of credit available. What matters is how your manage your finances. Lenders will work it out for themselves from your credit history. Well the data sets that they receive from the CRA's that they can can analyse.

If you wish to obtain a mortgage. Focus on saving rather than debt. As the outcome is bound to be better all round.

Nasqueron

Jamesie1 wrote: »

What a stupid comment to make, firstly not clearing in full if I was I wouldn't need a bt card?? Read the post again, yes I can't get the bt card I want but the loan is at a good rate and would pool it and save me money on a monthly basis. I'm not in some spiral of debt as I stated in my first post I am asking if I have to close my credit cards or if I can leave them open to keep a good credit line. Why is there always one on every forum that thinks they need to make silly comments. I always try and be objective not patronising. Thank you to all that have brought sensible comments to the table, keep up the good work..

I think you perhaps misunderstand what I wrote - I said "if you are not clearing in full every month" as part of a longer sentence. Perhaps "as you are not clearing" would make more sense to you?

You have errors in your post:

1) Closing unused cards and reducing credit exposure makes your credit record look better, not worse - less chance of running up lots more debt
2) No-one has a credit score as they don't exist, so you can't have a negative impact on it
3) Even if the scores did exist (which they don't), paying a minimum every month would harm your record as it indicates you have a poor handle on money and you spend more than you can pay for

The reason I posted was that instead of a loan running up more debt and being on your record for 6 years (following a period of minimum payments on the credit card which also harms the way lenders will look at you in terms of lending) if you paid off the higher APR cards and closed them (or closed unused ones) you would have a greater chance of getting a BT card to transfer the interest earning balances, allowing you to close the cards and further improve your credit history by not having so much credit exposure.

If anything, your bank is doing you a favour by suggesting the cards be closed as it reduces the temptation to run up cards again (a common occurrence following consolidation if other credit is suddenly clear and available).

It seems prudent to suggest ways to improve your credit rating to help you get a mortgage - paying minimum on CCs, not being able to clear balances in full and wanting to take out more debt while at the same time booking holidays is not the way to get a good mortgage. How are you going to afford a mortgage and all the associated household bills on top based on your current spending?

Still, feel free to ignore the advice and maybe see you again in a few years posting the same, I hope not but it's common enough on the DFW and bankruptcy boards.

Jamesie1

Nasqueron wrote: »

I think you perhaps misunderstand what I wrote - I said "if you are not clearing in full every month" as part of a longer sentence. Perhaps "as you are not clearing" would make more sense to you?

You have errors in your post:

1) Closing unused cards and reducing credit exposure makes your credit record look better, not worse - less chance of running up lots more debt
2) No-one has a credit score as they don't exist, so you can't have a negative impact on it
3) Even if the scores did exist (which they don't), paying a minimum every month would harm your record as it indicates you have a poor handle on money and you spend more than you can pay for

The reason I posted was that instead of a loan running up more debt and being on your record for 6 years (following a period of minimum payments on the credit card which also harms the way lenders will look at you in terms of lending) if you paid off the higher APR cards and closed them (or closed unused ones) you would have a greater chance of getting a BT card to transfer the interest earning balances, allowing you to close the cards and further improve your credit history by not having so much credit exposure.

If anything, your bank is doing you a favour by suggesting the cards be closed as it reduces the temptation to run up cards again (a common occurrence following consolidation if other credit is suddenly clear and available).

It seems prudent to suggest ways to improve your credit rating to help you get a mortgage - paying minimum on CCs, not being able to clear balances in full and wanting to take out more debt while at the same time booking holidays is not the way to get a good mortgage. How are you going to afford a mortgage and all the associated household bills on top based on your current spending?

Still, feel free to ignore the advice and maybe see you again in a few years posting the same, I hope not but it's common enough on the DFW and bankruptcy boards.

Appreciate the advice but my god you do like to end your posts with a little patronising comment. As a 35 year old with a decent income I would hope that bankruptcy is not on the cards but you never know what's around the corner, who knows might even strike the oh so wise, let's hope not, what would the forum do without a patronising !!!!!! like your good self! Got to love the bravery behind a computer!

jonesMUFCforever

Jamesie1 wrote: »

Appreciate the advice but my god you do like to end your posts with a little patronising comment. As a 35 year old with a decent income I would hope that bankruptcy is not on the cards but you never know what's around the corner, who knows might even strike the oh so wise, let's hope not, what would the forum do without a patronising !!!!!! like your good self! Got to love the bravery behind a computer!

James it is YOU who has the debt and YOU who came on here asking for advice.
This is a free public board where anybody can say anything - perhaps next time you could pay an IFA to sort out your finances?

Jamesie1

jonesMUFCforever wrote: »

James it is YOU who has the debt and YOU who came on here asking for advice.
This is a free public board where anybody can say anything - perhaps next time you could pay an IFA to sort out your finances?

Yes I did ask for advice but I asked for advice on whether a bank can make me close my credit card accounts I didn't ask for advice on whether or not it's responsible to book a holiday or whether or not I may or may not be bankrupt or on the debt forum in a couple of years! Again read the posts before making stupid comments. Another memeber asked for more details on my situation which I gave and then cue the patronising comments. Please admin close this thread it's becoming very boring.

andyfromotley

Jamsie,
trying to get back on track. Closing your CC accounts will have a minimal impact on your credit history and is just as likely to be viewed positively by as many lenders as those who view it negatively.
As the bank have asked for this as part of the deal (and i wish that many more banks did this to prevent people running up the debt again, been there, done that) i wonder if they could demand repayment in full if you didn't? I doubt it, and even if technically they could, i reckon the chances of doing this would be nil.

So all in all i think either way you are fretting about nothing on the closing the cards issue.

jonesMUFCforever

Jamesie1 wrote: »

Yes I did ask for advice but I asked for advice on whether a bank can make me close my credit card accounts I didn't ask for advice on whether or not it's responsible to book a holiday or whether or not I may or may not be bankrupt or on the debt forum in a couple of years! Again read the posts before making stupid comments. Another memeber asked for more details on my situation which I gave and then cue the patronising comments. Please admin close this thread it's becoming very boring.

I am not stupid but.........................;)