0% card for very catalogue debt and future loan advice please

Alising

Hi all. I'm new here and feel a bit embarrassed to not know the answer to this, but I'm going to carry on regardless. I've never had a credit card, but I do have both a Very and a Next catalogue account. I will give a bit of background and hopefully someone will be able to advise if it's a good idea/doable.
Firstly, I have around £500 outstanding on my Next account and about £900 on my Very. I have no idea what sort of credit limit I would get on a 0% card - my credit file isn't terrible but there have been a few occasions in the last 3 years where I've accidentally not transferred money to the correct account for payment, so I may have a couple of late payments on there. Ideally, I would like to pay the whole thing off on a 0% card and then pay the balance off in the remaining 0% interest period, potentially having to extend this to pay off in time, dependent on the original interest free period offered. Phew. I hope that makes sense?
Secondly, due to some personal medical issues, I will be looking to borrow around 5k at the beginning of next year (Well 10 in all, but half will be my partner borrowing). This is a time sensitive matter so we can't really wait much past this time, so whilst I would love to save a much bigger % of the amount needed, it's not really an option.
Ok, essay over, I apologise. My question therefore is twofold...firstly, is it worth getting the credit card to clear the larger catalogue debt and secondly, will it have a big effect on borrowing at the beginning of next year, meaning I would be better to leave the catalogue debts as they are and just take out the loan? Technically, if I'm accepted for the credit card the amount of debt outstanding early next year would be better, as it will be 6 months of interest free payments rather than 6 months of them skimming about a third off for interest. However, of course that will be another credit application within 6 months of a reasonably large loan request which I imagine would impact my lendability?
I apologise if these are really stupid questions but I just want to do the best thing financially and I'm really not sure what that is! Thanks in advance

[Deleted User]

Check whether they accept card payments or whether you need a money transfer option.

You may find that your options are limited if these small balances are causing repayment difficulties, alongside your missed payments.

Alising

I have checked and they do offer card payments.
Sorry, could you explain what you mean about small balances causing repayment difficulties please? I'm not struggling to make repayments if that's what you meant, I just want to stop paying a third of my repayment on interest and use the entire payment on clearing it down. Is that not a good idea? I am actually a bit clueless when it comes to the best option, hence asking on here haha

Nasqueron

Alising wrote: »

I have checked and they do offer card payments.
Sorry, could you explain what you mean about small balances causing repayment difficulties please? I'm not struggling to make repayments if that's what you meant, I just want to stop paying a third of my repayment on interest and use the entire payment on clearing it down. Is that not a good idea? I am actually a bit clueless when it comes to the best option, hence asking on here haha

If you can't pay off your balance in full on the shopping account then you are clearly struggling financially and lenders will see that and be less willing to either lend or will give smaller credit limits. You may well be able to get a card from the low credit rating companies but don't expect a huge limit and you'd still be paying interest on it - possibly more than now!


Look for a money transfer card from someone like MNBA - they do one at 4.9% for 48 months with a 0.5% fee or the 28 months at 0% with 2.99% fee, borrow what you need and pay off the account in full. Then work on clearing the card.


Do realise with a poor credit history you may struggle to get loans at affordable rates - clearly if you cannot pay these debts you will have problems paying a loan as well. Do you really need to get 10K in debt on top of your other issues for a medical reason? Can it be done on the NHS or after a period where you can save?



https://www.moneysavingexpert.com/credit-cards/money-transfers/

Alising

Ok thanks for clearing that up. Surely everyone who is balance transferring etc has debt that they cannot clear though? Admittedly potentially larger debts, but that wouldn't put me in a worse situation I'm sure? £900 isn't a huge amount but still a reasonable chunk to find in one month for a lot of people. I do understand what you are saying about being unable to clear it though.

I am also with it enough to know that with a less than ideal credit file I won't get the best rates on loans and may struggle to an extent. If it was possible to do on the bus or wait longer I would, I think I mentioned that in my original post. I'm far from thrilled about taking out a huge loan but in the circumstances, it is what it is.

I appreciate the time you guys took to answer the questions although I do feel it was quite judgemental! Not what I expected but I have taken on board the advice. Thanks

[Deleted User]

Alising wrote: »

I appreciate the time you guys took to answer the questions although I do feel it was quite judgemental! Not what I expected but I have taken on board the advice. Thanks

Not judgemental. Just factual and honest.

It's more important that that you have the correct information than tea, biscuits and a hug.

john1002

I suggest you sign up for the MSE credit club and see what your file says and use the credit card checker that won!!!8217;t impab your credit file and see what is offered, at least that way you can see if you can get a 0% money transfer Card to help pay down your debts.

Let us know how you get on, oh another option would be to try MBNA eligibility checker and possibly creations one as well.

John

Nasqueron

Alising wrote: »

Ok thanks for clearing that up. Surely everyone who is balance transferring etc has debt that they cannot clear though? Admittedly potentially larger debts, but that wouldn't put me in a worse situation I'm sure? £900 isn't a huge amount but still a reasonable chunk to find in one month for a lot of people. I do understand what you are saying about being unable to clear it though.

Not at all. I have frequently used a BT card to allow me to have the money in savings earning interest while paying off over an extended period. As with most stuff in life, those who can afford it get the offers they don't need but can use, those who can't afford it can't get the offers they do need.