Loan to pay off credit cards

raffhussain

Hi,


I wanted some advice on a loan, I currently have 2 credit cards which total to around £7600. I make repayments every month on time and pay more than my min payments.


I was wanting to know if taking a loan to pay off these cards would be a good idea? I don't have a very good credit score, I have had 1 default 2 years ago but the balance was settled.


I have done a soft check with Zopa and nationwide and got 14.9% from nationwide and 21% from Zopa. what are my chances?


Thanks

[Deleted User]

And the rates on your cards?

Dobbibill

Instinct says bad idea.

You may be paying off your credit cards but essentially, you are just moving the debt. Although, this would depend on what APR you are paying on your credit cards.

I say 'bad idea' for the reason that many people don't close their credit cards and with all the best intentions in the world, they return approx 12 months later with double the debt.

have you looked at a BT cards to see if you are eligible Even if it is a lower credit limit, some at 0% is better than none.

raffhussain

Hi
Thanks for the replies
I've already cut my cards up and have not used them. My Halifax I haven't used for over a year and my Barclayscard has been 6 months or so. I think both of them are around 18.9%apr

Dobbibill

raffhussain wrote: »

Hi
Thanks for the replies
I've already cut my cards up and have not used them. My Halifax I haven't used for over a year and my Barclayscard has been 6 months or so. I think both of them are around 18.9%apr

Make sure you find out definite APR before thinking about moving anything. 'Think' without fact could cause you problems.

Also be sure to address the reason you got into debt in the first place otherwise nothing is going to change and it will happen all over again in time.