BT card for a Low Income?

Little_John

I am trying to help my sister sort out her credit card debt, its a Lloyds TSB gold card that built up a few years ago due to un employment and other problems she used up all her saveings and hit the card.

She has been paying more than the minimum each month and the cards have been cut up each time TSB send another and any payments from the cards changed or canceled so the ballance shouldnt be getting worse. But even with paying more off each month the ballance isnt dropping. She isnt missing payments or anything and is paying 50% more than the minimum each month.

A few month ago we applied for a new card for a BT and were refused, I expect that she was refused to to her ~£7000 income, we applied for a capital one card last week and the same again she has been refused.
Her credit rateing should be pretty strong, she just this month made her final payment on her car mobile phone bill is paid ontime everytime by DD never goes over drawn.

What do they want or does anyone know a card that we can get for her so she can reduce how much TSB are makeing out of her.

Thanks
John

bank_insider

What does your sister owe on her card?

Sadly her income will be a factor, as a bank they will weigh up her outstandings against her income. Regardless if she pays a1, debt to income will prove criticial, sorry!

Milarky

A 'Life of balance' (LOB) card looks the better bet for a balance transfer in the longer run. Even if you were the one to obtain such a card in your name (assuming your sister can't) it will give the stability of lower rates and the chance of reducing the debt affordably.

In the alternative could she not ask LTSB about a personal loan? Rates vary but it could reduce the interest somewhat (but not as low as a LOB card would) It doesn't hurt to ask.

(Do you have a Barclaycard with a nill(ish) balance? They offer existing customers 6.9% still. I believe)

GeorgeUK

Not having much luck finding anything.

There are some cards that take into account the household income rather than the individual. Is this an option?

The postoffice have a 0% card but say

A gross annual income of £8,000 a year may qualify you for our Classic card.

Was wondering if the ~£7000 meant roughly - and was that the lower estimate?

I'll keep my eye out, but it doesn't look good. She may be able to call up some of the card companies and ask outright if it's possible to get a card with an income of £7000 - hopefully that way she'll know before any more credit checks are done.

She may be better applting to one of the mbna card banks such as Virgin - but too many applications may damage her rating as you know.

Longshot since it's LTSB, but has she asked them if they can reduce the rate?
I'm sure i read a few articles about doing that and a few posts on some that had managed to get this done.

George

Little_John

The income is a guess, when she bought her car she was happy to pay 1 weeks wage a month and I think her payments were about £140.

The ballance is £3600 over the last 6 month she has paid off about £200 of the debt the intrest is ust killing anything she pays back.

A personal loan, we have looked at that, we were in the bank last week and they offered her a loan but she doesnt like the idea of borrowing to pay it off. and the rate wasnt much better than the CC anyway she would just be forced to pay an amount each month. I know the banks give lower rates if you borrow more, so whould it work out better to borrow say £5000 to get the lower intrest rate use £3600 to pay the card then pay the rest back to the bank as part of paying back the loan?

I will get her to contact the bank to see if they can do anything about reduced rate for her.

Thanks for the ideas.