Low rate load for poor credit scorer

Martin_R

I am posting this on behalf of a disabled neighbour, as I have exhausted all ways I can find help for him ...

He has a credit card with a balance of £3500 on it, bug yesterday he got a letter to say the APR was rising from 37.2% to 44.9%.
If you are wondering why he had the card in the first place, I can't answer that, but it's there.
With his permission, I phoned the company and said he had never missed a payment and could the not do the rise, as I was about to contact them to see if they could to a reduction so as he could pay it off quicker.
They said no.
I asked if there was a settlement figure, at first they said no, but then said it would be £3000.

I then set to work seeing if I could find a £3000 loan with a low interest rate for a disabled man with a poor credit history.

Lots of companies were helpful and understanding, but not one would offer an APR of less than 44%.

Can anyone give me some ideas at all please?
He doesn't use the card - I cut it up for him today and said i would help him budget, with no more TV shopping channel buys, so that's the situation.

Can anyone please suggest where i can find a £3000 loan with a low interest rate for a disabled man with a poor credit history.

Thankyou

[Deleted User]

People with poor credit histories don't get loans with low rates.

He will need to look at cutting costs. He should also reject the increase on his card and pay it off at the current rate (while losing the using of the card).

namtaffy

It isn't going to happen unless he is in good standing with his bank and they offer him a loan on his internal credit score.

He should write to the credit card company and explain his situation, request they close his account, freeze all interest and arrange a repayment plan. Include his income and outgoings and stress to them his next step is entering into an IVA (this will focus their mind as it could mean they receive very little and have to write off a large amount of the debt).

It would be a good idea to contact a debt charity or citizens advice if this is causing him hardship

DCFC79

Its not going to happen Im afraid, has he got anything of value he could sell, the stuff he bought from the shopping channels ?

Gambler101

Overpay the card each month, even a £10 or £20 overpay will educe the interest by loads over time!!

poppasmurf_bewdley

If he closes the credit card account, the card company should freeze the rate at it's current level until the amount in the account is paid off.

This will have the added advantage of your neighbour not being able to run up any more debt.

Martin_R

Thankyou everyone for the replies, I will pass this on.
I really feel for him, as he's a decent bloke and sold most of his stuff of value to pay for bedroom tax while waiting to downsize. He has been told that he has about another 8 months on the current Council list, or he could move to Norfolk, which wouldn't be any use as the medical facilities he needs are in London.

He can't use the card, as as I said originally i cut it up, tomorrow i'll go and see him and together we will phone the company to close the account at the current interest rate, and ask if the debt could be a frozen amount without interest and pay it back as he dies aged present, which will be quicker as looking at his last statement it was £118 in interest ��

Then, i'll see if there are any low interest credit cards that do a balance transfer, even if for just half the debt, get him the card, cut it up and just pay that one off.

The reason I feel for him so much is that he became disabled after a vicious attack years ago.

Thankyou again everyone

Martin_R

DCFC79 wrote: »

Its not going to happen Im afraid, has he got anything of value he could sell, the stuff he bought from the shopping channels ?

Trust me, the rubbish he has bought even charity shops would reject

sjbrun

If you think he is a good bet to pay it back, would you be prepared to get a good rate loan in your name or a balance transfer and then he pay you back?

As the banks will have the exact same worry, he has failed to pay back credit before to get the poor credit score / low income to pay back.

Grzegorz_Kowalski

Deleted_User wrote: »

People with poor credit histories don't get loans with low rates.

He will need to look at cutting costs. He should also reject the increase on his card and pay it off at the current rate (while losing the using of the card).

Ditto. Reject the increase and pay off the card at the current rate.

zippygeorgeandben

Also - you sound like a wonderful human being.