£5k paid off in 2015, £4k to go in 2016!

mattquk

So,

Finally got my !!!! in gear last year and tackled my debts head on paying off overdrafts//credit cards//payday loans. I have two debts left - one credit card of £1k, which I will pay off at the end of the month and another, a defaulted overdraft. The O/D was originally £2,000, but the balance is £3,208 as they put on that many ridiculous charges. It's been in default for a number of years - what do you think the chances are of Natwest accepting £2,000, the original overdraft amount, are?

Also, one other question, I closed an active Luma credit card a couple of months ago with a credit limit of £1000 (I was using it, responsibly, incurred no charges), because I opened a diff CC with a better rate (Slightly lower initial balance), and the following month my credit score got worse - is that normal?

Thanks!

Sanctioned_Parts_List

mattquk wrote: »

Also, one other question, I closed an active Luma credit card a couple of months ago with a credit limit of £1000 (I was using it, responsibly, incurred no charges), because I opened a diff CC with a better rate (Slightly lower initial balance), and the following month my credit score got worse - is that normal?

Well done on your progress to date. No idea wrt the overdraft, but it's worth asking them.

With respect to this point though, yes it's perfectly normal for your hypothetical (reference agency calculated) score to take a dip after you switch cards. This being because i) you've made a credit application and ii) the average age of your credit accounts is reduced.

Since the credit scores provided the reference agencies are hypothetical at best, it's not worth worrying about.