Ineligible for money transfer card - what next?

jackcos

Hi all,
recently tried following this article: https://www.moneysavingexpert.com/credit-cards/money-transfers/

I tried all 3 credit cards, I tried registering with MBNA, Tesco Bank and Virgin Money and was rejected by all 3.

I've got a £2,000 overdraft with Lloyds Bank I'm looking to clear. I'm earning over £20,000 a year in a newish job, but my takehome pay each month is not enough to clear the overdraft in one fell swoop. I was hoping to clear it with a money transfer card, avoid the overdraft interest, and pay off the credit card whilst it was on 0%. This overdraft has been a huge burden on my life for the longest time and I just want it rid, but Lloyds make it exceptionally difficult with daily fees.

Clearly the credit card option is out of bounds to me due to my credit rating (I have been out of work/in my overdraft for a while) so is there any other option I can take? 

Many thanks. Apologies if this is posted in the wrong place.

bigadaj

You need to direct your efforts to pay down the overdraft as much as you can what interest rate are you paying?
One option if you cant get a decent money transfer card is to get a normal card with a 0% purchases card, put your normal spending on that and use the money from that to pay down your overdraft, but that does require disciplined spending and agin your credit file may not be good enough to qualify.
It may be worth posting on the debt free board and fill out a statement of affairs where others can suggest areas of saving in spending so freeing up cash to pay the overdraft down more quickly.

jackcos

Just to underline how dire my credit rating is, I was ineligble for the Amazon credit card listed on the 'Credit Cards For Bad Credit'
as the top card to rebuild poor credit score.

Is this because I'm deep into an overdraft? Have my bank put this on my history?

bradders1983

Banks do report overdraft history, nothing wrong with that.

jackcos

bigadaj said:

It may be worth posting on the debt free board and fill out a statement of affairs where others can suggest areas of saving in spending so freeing up cash to pay the overdraft down more quickly.

Okay, I'll have a look there, thank you.

kaMelo

Your bank will certainly have added your overdraft history to your credit report. Continually being in an overdraft will put off many mainstream lenders from lending to you.
Overdrafts, whilst easy to access, have always been one of the most expensive ways to borrow money, it's just that the way fees were charged made it difficult to compare sometimes.
Now you're in work pay it off as fast as possible and things will improve.

Thrugelmir

Speak to the bank and see if they'll agree to convert the overdraft into an affordable loan. 

jackcos

kaMelo - I'll aim to clear it asap.

Thrugelmir - I'll give them a ring tomorrow, definitely worth a shot.

Thanks!

D3xt3r5L4b

Earn more. Spend less. The usual advice. 

cymruchris

How many cards have you actually submitted a FULL application for versus just completing eligibility checkers?

jackcos said:

I tried all 3 credit cards, I tried registering with MBNA, Tesco Bank and Virgin Money and was rejected by all 3.

If they were full applications followed by a decline - then STOP applying for more cards NOW.