Credit Cards

mick1234_2

Hi,

I cureently have several credit cards as seen below, not in a great way currently but I have just received some money around £5000 to pay off some of my debt what would be the best way to distribute this? I was thinking highest interest first add it all to that my score will then improve then apply for some more 0% and continue paying off, thoughts ?

BARCLAYCARD Credit Limit £8,400.00 Balance £8,249.00 Available Credit £151.00 Percentage Used 98%

AccountsTESCO BANK Credit Limit £3,200.00 Balance £2,925.00 Available Credit £275.00 Percentage Used 91%

AccountsMBNA LTD Credit Limit £3,600.00 Balance £3,539.00 Available Credit £61.00 Percentage Used 98%

AccountsHALIFAX CREDIT CARD Credit Limit £1,450.00 Balance £1,414.00 Available Credit £36.00 Percentage Used 97%

AccountsBOS CREDIT CARD Credit Limit £2,150.00 Balance £2,109.00 Available Credit £41.00 Percentage Used 98%

Willing2Learn

The best method is to snowball the debt, starting with the card with the highest APR.

If you demonstrate you are managing your credit accounts well, then you could go for a balance transfer card. You should do a 'soft' search first on the MSE eligibility checker. If not now, then in say 9 months time.

easterbunni

I would probably pay off the MBNA in full plus the Halifax, then you have empty cards, which you may be able to get a 0% balance transfers for. MBNA like to give out balance transfers.

mick1234_2

would you pay off the accounts and leave them open ?

shiny76

mick1234 wrote: »

would you pay off the accounts and leave them open ?

Given your high level of utilisation then it may be best to leave them open. See this link for an explanation:
https://www.experian.com/blogs/ask-experian/how-utilization-rate-affects-credit-scores/

However, make sure you don't start using the credit again!

[Deleted User]

Clear them and keep them open

Just when you use them, make sure you pay them off in full each month after the statement

Are any of those cards on 0% promo's or are you paying interest?

Ignore your made up score/rating

18cc

You did not put down at the APR for each card but yes in general I would pay off the highest APR first

onlyfoolsandparking

easterbunni wrote: »

I would probably pay off the MBNA in full plus the Halifax, then you have empty cards, which you may be able to get a 0% balance transfers for. MBNA like to give out balance transfers.

Agree, pay these 2 off in full, leave them open then wait it out, you could get offered deals more or less straightaway or when you cycle through a monthly statement or within a few months?? its a bit of a lottery.


MBNA are usually pretty good at giving deals, Halifax have deals but I,ve always had to ring them to discover them, last time I rang (few weeks ago) 15 months 0%, B/T rate 3%


I always try and have at least 2 cards with very little balance at all times to cash in on deals and keep interest to a minimum.

Dobbibill

Highest APR is usually the best way to go. If there's not much in it then maybe consider paying off the ones more likely to offer you existing customer promo deals - MBNA & BC are well known for this and your limit on BC is the largest.

Make sure you address the reason for the debt - without doing that it may happen again in the future.

Craig1981

Highest APR cards first, but, based on the fact that you have 5 card with over 90% utilisation, are you going to have the willpower not to max them out again?

IMHO, pay off two of the cards if you can, cut the card up so you cannot use them - leaving the accounts open, but no risk of spending

Emily_Joy

Pay off MBNA and Barclaycard, then wait for balance transfer offer from them and move the one with highest APR there.