Effect of Lender freezing interest on credit file

SLK10

Hello,


I really need some advise from people who have had their credit card interest frozen and entered a repayment program directly with the lender. I have never missed any payments so haven't defaulted. But I am in lots of debt and need to get it cleared as it causing me anxiety. So I called MBNA with whom I have 3 credit cards totalling approx. £8k to explain this. They immeditaly froze the cards even although I haven't used the cards for spending in a very long time. I usually just balance transfer when they offer a good deal, so now that won't be available anymore which isn't helpful. They also offered a repayment program so that interest would stop but I need to understand how this affects my credit score as I am desperate not to spoil it. Has anyone done this before and how has it affected your ability to get credit. I am NOT looking to obtain more credit but I need my other cards to offer good balance transfer rates in the future. I'm just trying to get out of this mess and will NEVER borrow anymore money! I have enough money to make all my payments and just want t get out of this mess I got myself into when I was on unpaid maternity leave. Thank you very much for any advise.

[Deleted User]

Quite badly.

It will be marked as an arrangement. Avoid it if you possibly can.

Candyapple

If you don't want to affect your credit history then you need to either increase your income and pay whatever extra you can towards your debts or reduce your outgoings and do the same.

http://www.whatsthecost.com/snowball.aspx

Some threads about AR here:
https://forums.moneysavingexpert.com/discussion/4751002
https://forums.moneysavingexpert.com/discussion/3449001

System

SLK10 wrote: »

They immeditaly froze the cards even although I haven't used the cards for spending in a very long time. I usually just balance transfer when they offer a good deal, so now that won't be available anymore which isn't helpful.

Quite the contrary. Balance transferring is what has got you in this mess in the first place as you did the balance transfer and spent the spare credit on the new card and the freed up credit available on the old one so now preventing you doing this prevents you digging a deeper hole. They're not adding interest so from a money point of view you're no worse off.

You say you're not looking for more credit in the future but want to be able to get balance transfer cards which is looking for more credit. I bet when you applied for the cards you currently have to do balance transfers from other ones you convinced yourself you weren't applying for more credit then didn't you?

Use this as an opportunity to break the addiction to credit you have clearly got to anyone outside looking at your situation.

dumpyboy

If you go for this with mbna make sure you get it in writing what mbna are going to do and what they report, in my experience when I was in trouble mbna come across the most helpful , three years down the line it proved that in fact they were the worse

phillw

SLK10 wrote: »

I have enough money to make all my payments and just want t get out of this mess I got myself into when I was on unpaid maternity leave. Thank you very much for any advise.

What mess are you in exactly? Are you only able to pay the minimum payment every month? Or are you able to make significant payments to clear the debt?

The advice will depend on your exact circumstances. Anything other than paying your debts normally will mess up your credit file.