Capital One Repayment Plan Offer

Nwad

I have been offered 3 options of repayment plans for persistant debt by Capital One. I have some defaults/DRO due to come off my credit files in the next month or so. My plan was to apply for a balance transfer card once they had. Capital One have stated I need to contact them before 7th April. My question is I am currently paying the minimum. Do I need to set up a payment plan? I am not in breach of my contract. I am trying to clear all debts by Feb next year and improve my credit score. Will this cause problems with my credit score if I do or don't take them up on their offer? Many thanks 😊

[Deleted User]

You're almost certainly not going to get a BT card if you're in persistent debt.  

You need to increase your payments as much as possible to get the debt cleared.  Whether it makes your score go up or down doesn't matter - it will show lenders that you're starting to do something about the debt.  Once you've lowered it, you may be able to get a BT offer.

Go to the DFW boards for advice on cutting costs and repaying faster.

Nwad

Believe me there are no more costs I can cut. My question is simply what impact will this have on my credit score? If I do or don't take on a repayment plan. I have spent six years waiting for DRO/Defaults to clear so I can apply for a small mortgage next Feb when I am due a lump sum. I am merely trying to establish if this will end up causing me another nightmare six years....do I take a repayment plan or continue as I am? The amount is under £800

[Deleted User]

As I say it simply doesn't matter, as the score isn't used or seen by anyone but you. Paying only the minimum  is interpreted poorly by lenders. 

So anything above that, will improve how lenders see you, even if it drop your score because you're paying more than before. 

Dandytf

OP I'de be interested to know what effect this has on your credit rating.
I'm due to pay another one off payment to Aqua who recently re posted their Boost payments option or total balance over 48 months- I have almost 2 months to decide, though I'm making a medium one off payment from start off April which I hope buys me more time.
I have dmp due to complete late 2021 and would not be happy with myself if Aqua re start another few years of negative info, though only myself to blame if that happens.
Good luck OP -you could give Cap1 a call and ask if you could make a one off payment to allow some more time or temporarily remove persistent debt flag -though no guarantees with this info.

Nwad

Thanks guys. Perhaps I haven't worded this well. I am wanting to know what impact taking on a repayment plan will have on my credit report? I'm not even sure it is persistent debt.....what does that mean? It's just a card I took out in time of need and have never spent on since and have been paying the minimum on for a few years. The repayment plan is £1 more then my current payment with a 1% cut in interest. Thanks

[Deleted User]

The minimum payment marker should stopped appearing, which improves how you are viewed.

the_big_al

I think Capital One will tell you if this has any effect on your credit rating. Interesting that they've dropped your interest rate.
I rejected a couple of their plans and am contemplating staying with the original minimum payment  or going for another one that they've come up with, The latter plan they've offered allows continued use of the card for purchases only but the others
'suspend' use of the card. I wasn't offered an interest rate drop, I may have a chat with them about that. 

Persistent debt is a phrase that seems to have been dreamt up by the FCA and basically is them trying to ensure that people
are paying more off the loan than they are paying in interest and in a reasoable time (47 months seems to be the norm
according to the plans they've offered me).

2e0arr

Nwad how much do you owe and why ?
how long will it take you to clear it ? 
have you stopped spending on stuff you don't need ?