0% 'No chance' on eligibilty checker...

sheff71

Just looking for a little advice...

I've been using 0% Bank Transfer Credit Cards to try to get on top of debt over last few years - and as a couple are coming towards the end of the interest free period and still have money owing, I was looking at the possibility of putting the whole lot together in one personal loan, so it's just one payment covering it each month, and so i'm not constantly moving from one to another.

I've been with Yorkshire Bank almost 25 years, and in the same address longer, and have made payments on time on all but a couple of occasions since i've been with the bank - however two of these were in December, when payments to 2 Credit Cards were a day late or paid on the due date, as i'd missed the expected date over christmas - one of the two is now completely paid off, the other is still at 0% (though they did say to be careful not to miss payment again). Payments since have been extra early for this.

So, I tried the eligibility tool, looking at 25k over 5 years as first option - YB have a 3% offer on currently, which would mean i'd be paying significantly less overall than i currently am now on just the two cards that will be paid off this year. However, they all came back as -0% - No Chance or could not get an eligibility rating - I tried again for 15k at 4 years on the checker - same results.

I still have interest free on the largest amount for another 18 months so the amount of the loan could potentially be anywhere from 10k to 25k, depending on what to pull into the loan... though it would've been preferable payments wise to be able to spread over a longer time if possible.

It has shocked me a little, as I was looking at this as a way to really take full and fixed control of my finances, with one manageable monthly payment - now i'm wary of trying to apply with Yorkshire Bank at all, and potentially have credit affected further...

Is that just meaning 0% chance of getting 3% rate they offer, or of being offered any rate at all?

Any guidance appreciated!

Ben8282

Unfortunately with your current levels of debt and the recent late payments it probably means no at any rate at all.
Why don't you set up a direct debit or schedule payments from your bank account in advance to prevent late payments occurring again.

maas

Also, pop over to the 'Debt-Free Wannabe' forum and post a full SOA (Pick MSE option at the end).

Caz3121

You need to consider that the lender will consider this loan as additional borrowing on top of your current debt (there is no guarantee you will use the loan to pay of the existing debts)
If you currently owe £25k and are looking for a loan of £25k, you would need to have a salary that will support debt of £50k (£100k+?)

Dobbibill

This may be good news in disguise as consolidation doesn't work. There are plenty of stories all over the forum of people who have tried and failed this route.

You have a considerable amount of debt so keep chipping away at it - paying more to the interest bearing debt first.

In a few months try for a 0% BT card - even if it's a lesser credit limit than the interest bearing debt you can move some of the debt to 0% and again keep chipping away more at the interest bearing debt.

The deals that are coming to and end, if moved may free up existing customer deals with that provider meaning you can shuffle again. Barclaycard are known for this.

Also, as said, head over to the DFW board with a SOA and see if they can see any other ways you can save on your monthly outgoings to throw more at the debt.

jonesMUFCforever

OP are you paying just the minimum every month?
If so do you have any scope for paying more to bring the debt down before the 0% runs out?