Capital One - 2nd Card

Superhoopza

I have payday loans I'm trying to clear with credit cards as the interest on payday loans is of course far greater. Then I'll look to have the credit cards clear in a few months.

[Deleted User]

Pay Day loans will make your application for further credit increasingly difficult.

How much is owing in total?

Superhoopza

About £2,500 to payday loans, 2k overdraft and 2k to mates. 800 to Cap 1

I guess now I have the aqua card pre approval and the hard search I should carry on with this application or should I still look to get the cap 1 card with half the interest rate of aqua but another credit search.

[Deleted User]

It depends on what purpose you need another card for when you're already over £7k in debt

Superhoopza

As I said, I'd use it for monthly spending so I can allocate more of my money in my bank account to paying the payday loans on far higher interest rates than the credit cards would charge.

Again going back to my question, do I take the card I've been offered at 54.9% or do another search for one I've been pre approved for at 29.9% even if it means another credit search on me. I'm trying to clear the payday loans as quickly as possible.

A4445

I don’t see why you can have both? If it’s pre approved then it’s not a waste of a hard search. You won’t know what the credit limit will be on the pre approved card, it may not be enough to clear your loans. I’d put as much on the lower rate card as possible and then use the higher rate card.

Superhoopza

A4445

It's pre approved on the eligiblity checker, only then do they do a hard search after anyway. Your suggestion is I get both cards (so 3 in total)?

[Deleted User]

So you're not going to be paying the new card/s off in full each month?

Superhoopza

No Gary, I've said this a few times.

Superhoopza

I will be paying them off in about 4-6 months time.

But as an example, if I paid £500 on my payday loans and used that for spending in the month instead, I'd save £250 on interest payments of my payday loans and wrack up £85 interest in CC cards presuming it was paid in 4 months.