Any 0% Balance Transfer cards for bad credit?

Jlawson118

My girlfriend opened up to me last night and told me she's in quite a significant amount of credit card debt from silly mistakes she made as a teenager. She is paying these monthly but I can imagine she's paying a hefty amount of interest. I don't think she quite knows herself how much is left to repay as she just pays a monthly direct debit and tries to forget about it.

I'm not sure which credit providers she's got the debt with, but I've suggested we sit down this weekend and figure out a plan on getting her on the right path, which I want to aim to try get her merged onto one 0% BT card and keep an eye on it.

But she's checked her credit reports and her score is relatively low (I know the score isn't as accurate as the report itself) but she's told me she got her brother a phone contract years ago and then ended up missing payments. This isn't the case anymore and she's well away from that, just her own debt to focus on.

She has said she's checked the MSE calculator for a 0% card and not found anything. Now I'm wondering where we can look.

She does bank with HSBC and Natwest so I would try and make those our first point of call (If they're not where she's got the cards already), but if it's not with them, I've seen HSBC do have 0% for 25 months and only a 1.5% fee. But I've also been thinking of looking into providers like Aqua, Capital One or any others dedicated to building credit?

My best 0% cards have been First Direct, Barclaycard and Virgin Money. I did also have one with Halifax last year but not anymore, but I'm not sure if she would be eligible to apply for any of these either?

It's a shame she's got this on her back, because she's really quite clued up with money and budgeting now. But overall I'm just wondering what the best course of action will be for her and where she could get applying for a 0% offer?

Willing2Learn

Your girlfriend should start her own DFW thread for advice, support and guidance on how to deal with the debt.

CapitalOne do a BT card. And they have an eligibility checker too.
https://www.capitalone.co.uk/creditcards/0-balance-transfer-credit-card-12-months.jsf

PRAISETHESUN

https://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards/#poorer

Might be a few options with sub-prime lenders (Capital One, etc) but the time limits on them are substantially shorter. That said, even a few months at 0% is better than nothing and will save a fair bit of money if she can throw as much as she can at the debt during that time.

I'd also recommend that you don't try to get cards in your name to help pay her debt. Not every lender would let you do this anyway, but you would become responsible for the debt and be forced to pay it yourself were she to stop paying.

Jlawson118

PRAISETHESUN wrote: »

https://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards/#poorer

Might be a few options with sub-prime lenders (Capital One, etc) but the time limits on them are substantially shorter. That said, even a few months at 0% is better than nothing and will save a fair bit of money if she can throw as much as she can at the debt during that time.

I'd also recommend that you don't try to get cards in your name to help pay her debt. Not every lender would let you do this anyway, but you would become responsible for the debt and be forced to pay it yourself were she to stop paying.

Yeah I'm definitely not taking her debt in my name don't worry! I couldn't afford to take that risk at all

abc.xyz

Even if she already holds an account with HSBC, don't waste a hard search on HSBC or First Direct. They are known to be very picky lenders, and 1.5% is a good fee, so I'd say she's unlikely to be accepted.

As already suggested, Cap One do a BT card and you can do an eligibility check first. Aqua and Marbles too.

maxximus75

She could always do an eligibility check with both HSBC and Natwest as they will do a soft search to give an indication of acceptance. I believe Natwest will give an indication of credit limit and quite possibly, HSBC too.


It's worth a shot and as they are a soft search, won't affect her credit report.

Ben8282

From what you have written it is not readily apparent that there is anything wrong with her ability to get credit or that she has 'bad' credit. Some missed payments 'years ago' should not be having a devastating effect. Her problem seems to be that she has substantial balances.

Jlawson118

Ben8282 wrote: »

From what you have written it is not readily apparent that there is anything wrong with her ability to get credit or that she has 'bad' credit. Some missed payments 'years ago' should not be having a devastating effect. Her problem seems to be that she has substantial balances.

When I've looked at her report with her, it is quite clear it is the balances holding her back as they're not going down and she is maxing out a few limits. She's also got a few accounts with online stores to which she's tried to help herself from getting in more debt by reducing her limit, unaware reducing her limit would mean she's not utilising her credit limits too well.

The main card she's got is with marbles, and she's holding herself back too with many hard searches to try and get that credit under control. Therefore I think we'll have to wait for these searches to be removed over the next few months, see her report improve and see what her options are there.

Nemodot

Bankruptcy might be an option if very large, or just stop going out, buying clothes and slash all spending and pay it back.

There are no real 0% deals anymore, all charge interest up front in a fee, and are for excellent credit ratings only.

Willing2Learn

Nemodot wrote: »

Bankruptcy might be an option if very large, or just stop going out, buying clothes and slash all spending and pay it back.

There are no real 0% deals anymore, all charge interest up front in a fee, and are for excellent credit ratings only.

Firstly, happy xmas.

Secondly, there are always a number of BT cards that have both a 0% APR promotional window and 0% BT fee.

Thirdly, why do you say bankruptcy is an option when the OPs girlfriend is able to make her contractual payments? We would need to see her monthly budget before we can advise anything so drastic.

jcontest

You could also opt for a 0% spending card. Pay the minimum on that and EVERYTHING extra on your worst interest card.


Personal loans could be a good option too, depending on how much she is paying against the cards. I would opt for something that will allow early repayment without a penalty, and no odd fee structures.



The problem I have found is that many people in bad debt, when they get new credit, they often are overjoyed at the fact that they can spend again and tend to load themselves up with debt and end up worse off. I don't know you or your other half, it is just what I have seen.


Bad stuff from years ago shouldn't be causing issues. If the debt income ratio is bad then your going to struggle getting higher balances or opening new accounts.



First thing being fist, the fact that you say you think she's unsure how much her debt actually stands or what she is paying is quite worrying. Most if not all of the debt should be showing up on the credit report. One of my debit accounts, largeish overdraft, doesn't show up on mine. Nor does two of my phone contracts, both below £10 a month.


She needs to sit down and make a full list of all debts and work out her incoming and outgoing. Insolvency isn't the cure to problems, but as suggested by someone else - that might be the direction she will go if things are too bad.