Strike while the Credit Score 'Iron' is hot?

Candyapple

Thanks for the info.

You mention that the loan is your OH's - are you two financially linked? As in do you have any bank accounts/mortgages/joint loans together? If so, your OH's debts and credit history will also be taken into consideration when you apply for any credit products as their files will be searched also.

Based on the info you gave, and I have included the loan in this amount, you have access to £26,800. Out of this, you currently owe £17,092. Your credit utilisation is roughly 64%.

You also owe an additional £4,550 in overdrafts.

So from a lender's point of view they are going to look at how much money do you have access to (just shy of £10k available balance on your cards/loan) and then they'd be thinking you want to take out an additional card/loan but given you owe in total £21,642, if they gave you a new card with even a £5k limit, they are at risk of you defaulting because you are too close to the breadline in regards of maintaining your payments hence why you would fail on affordability by the looks of it. You are too risky a prospect at this point in time.


Credit Card 3:
- Balance £0 (25.9% APR)
- Limit £5,000
- The balance was BT to MBNA 0% (needs to be closed)

Does this card have any balance transfer offers available on it as an existing customer? If yes, try and move as much as possible from credit card 2's balance onto it.

If it doesn't have any offers, I would close it and then spend 3-6 next couple of months trying to throw as much money as possible in paying down the balance on the highest interest debt and then try and apply for a new card then.

That way all 3 credit reference agencies will have had ample opportunity to update your files with the closed card account and also the new MBNA card impact of having a new account will be lessened also.

MrsTinks

CC3 - any chance they might offer you a 0% transfer offer? If it's Barclay card I'd sight tight as they're fairly likely to do that likewise the others... as you shift it all round you may find they will give you transfer offers without you needing to take more credit out

Bird.Heart.Mouse

Hey Candyapple

Candyapple wrote: »

You mention that the loan is your OH's - are you two financially linked? As in do you have any bank accounts/mortgages/joint loans together?

Yes we do have a Joint Account together, so it makes sense my OH will be considered

Candyapple wrote: »

Thanks for the info.
Credit Card 3:
- Balance £0 (25.9% APR)
- Limit £5,000
- The balance was BT to MBNA 0% (needs to be closed)

Does this card have any balance transfer offers available on it as an existing customer? If yes, try and move as much as possible from credit card 2's balance onto it.

If it doesn't have any offers, I would close it and then spend 3-6 next couple of months trying to throw as much money as possible in paying down the balance on the highest interest debt and then try and apply for a new card then.

That way all 3 credit reference agencies will have had ample opportunity to update your files with the closed card account and also the new MBNA card impact of having a new account will be lessened also.

Sadly MBNA (CC3) and Barclaycard (CC2) don't have any offers so I'm taking your advice and focusing on paying off the most expensive debt for the next 3/6 months.

Thanks so much for taking the time to review my finances!

Much appreciated - Bird x

Bird.Heart.Mouse

MrsTinks wrote: »

CC3 - any chance they might offer you a 0% transfer offer? If it's Barclay card I'd sight tight as they're fairly likely to do that likewise the others... as you shift it all round you may find they will give you transfer offers without you needing to take more credit out

Thanks Mrs Tinks! Sadly having spoken to MBNA (CC3) there are no offers on the table right now. I had a look at the MSE Credit Card Shuffle website which has given me some great ideas to try this year - moving debt around without taking more credit out sounds like a plan to me!

All the very best,

Bird x