Asking for help...

Rover77

Any help grateful received.

I earn 32.5K pa,

I’ve got about 18 months to run with a loan at £295 per month (6K left to pay) and 1 credit card maxed at £4K (Vanquis, high interest),

I’ve got a very good credit score according to Experian and equifax.

As you expect I like to get the £4K off the Vanquis card, so I applied for a £4K loan from AA to clear the amount and start again (predicted 80% chance of acceptance with MSE), however I was refused. This was about 2 months ago.

I did some research and was told by equifax that this was due to me have used 95% of my overall credit card limit. Apparently the flag triggers when you get over 50%. I never knew that this would be an issue, but because I only got the one credit card, this one amount has effected my score.

I’m left with the scenario of having to find £2k to pay off half of my credit card before I can rejig my finances and get away from the high percentages of Vanquis.

Very grateful of any suggestions of other options go forward.

[Deleted User]

We’ll step 1 is to ignore the made up scores and ratings.

Why on earth would you take a loan out to clear a CC debt?

Can you not apply for a BT card?

Try some eligibility checkers

Rover77

Thanks for the Gary, very much appreciated.

Thought Id go for a short loan to reduce the interest percentage on the 4K, intend the loan to be over 2 years

[Deleted User]

Head over to the DFW boards for help. You need to cut costs and pay back faster. Further credit is unlikely to be the answer when you're carrying a balance on a Vanquis card.

T-G-C

Rover77 wrote: »

Any help grateful received.

I earn 32.5K pa,

I’ve got about 18 months to run with a loan at £295 per month (6K left to pay) and 1 credit card maxed at £4K (Vanquis, high interest),

I’ve got a very good credit score according to Experian and equifax.

As you expect I like to get the £4K off the Vanquis card, so I applied for a £4K loan from AA to clear the amount and start again (predicted 80% chance of acceptance with MSE), however I was refused. This was about 2 months ago.

I did some research and was told by equifax that this was due to me have used 95% of my overall credit card limit. Apparently the flag triggers when you get over 50%. I never knew that this would be an issue, but because I only got the one credit card, this one amount has effected my score.

I’m left with the scenario of having to find £2k to pay off half of my credit card before I can rejig my finances and get away from the high percentages of Vanquis.

Very grateful of any suggestions of other options go forward.

Even £2000 on a Vanquis card will be a bomb in interest per month. You shouldn't take out more debt to repay debt, however consolidation can sometimes be a useful practice, if it is calculated correctly.


The loan interest should be considerably lower than what Vanquis would charge, based on the loan term. For example, if the loan is for 12 months and the total interest is £400 but Vanquis' would be £700 over 12 months, then the loan could be a better alternative for you. This is provided ALL of the loan amount is directed at paying your debt (some people are tempted to spend some) and you're confident in being able to meet the monthly repayments without predicted risk of defaulting.


Unless you can lower your utilization through other means, it may be difficult to take out a debt consolidation loan at the moment. You should dedicate some of your monthly salary to paying off your credit accounts, thereby lowering the overall percentage each time.

Dobbibill

Try the elibigibility checker to see if you can get a Balance Transfer card.

https://creditcards.moneysavingexpert.com/?balance-transfer&_ga=2.98949851.453622211.1528313673-1295540533.1519380617


Check out how they work here https://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards-variant2?utm_expid=.3ZTzu7HkRa-EIfv248Dt7A.1&utm_referrer=https%3A%2F%2Fwww.moneysavingexpert.com%2Fcredit-cards%2F


Head over to the DFW board, post a SOA and the good members will see if there is anywhere you can make savings to overpay the debt ASAP.