How is best to repay my cc amex?

Hi I have an AMEX BA with a credit of 6k and an APR of ~18.5%. My debt to salary ratio is aroun 32% ( mortgage + minimum payments in this card ).

What is best option for me?

1. Transfer that into a 0% credit card?
2. Get a personal loan with APR of 4.2% that was proposed to me?

I prefer option 2 since my salary is good enough and I prefer repaying that in once rather than having my limit transferred. But I tried getting a personal loan last year and got rejected ( but it was a month after my mortgage started ) so wondering should I try and re-apply? If I am rejected again that would look badly on my credit record right?

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242
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    Only the search is recorded - not the result.

    I would try a BT card.
  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320
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    Your best option is to transfer to a 0% card ... IF you get accepted, and IF you are offered a high enough credit limit. Why would you want to pay 4.2% interest if you can pay 0% ?

    That aside, debt consolidation loans are generally a bad idea. The temptation is to clear the credit card, then start spending on it again, and ultimately end up with double the debt.

    Another point to consider - if you can transfer to a 0% card, put money aside to pay the remaining balance off once the 0% deal comes to an end. Otherwise you're stuck with paying their standard APR, and no guarantee of being able to shift it to another 0% card.
  • Agree with Ebe Scrooge.
  • MallyGirl
    MallyGirl Posts: 6,513
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    if trying for a BT card do a bit of research as some cards will not transfer balances from Amex - I think I saw a thread about Sainsburys not working yesterday
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