Eligibility when unemployed

Raych77

Hello All

I would be grateful for some advice. I am currently unemployed (through sickness) but I do receive an "income" (critical illness insurance). I have two credit cards, one attracting interest per month of c£60. I pay off the balance in full on one and make in excess of the minimum payment on the other but, ideally, would like to move to a 0% so I can pay the latter off quicker.

The issue I have, I think, is my unemployed status. My credit rating varies from good to excellent with all the major credit reference agencies. I tried the eligibility calculator and got nothing so I am loathed to do a "hard" search as it will affect my credit rating. 

Does anyone have any advice on how I might be able to switch successfullly?

Thanks!

CliveOfIndia

You can ignore your "excellent" credit rating that the CRAs give you, it's how an individual lender views you that's important.

It's worth doing an eligibility check on a lender's own website, rather than a generic third-party checker.  Although it is still only a rough indication (not a guarantee), it tends to be slightly more accurate as it will factor in some of that lender's specific criteria.

When it asks for your income, just make sure you answer truthfully.  Any form of regular income is usually acceptable (it doesn't have to be wages), but some lenders will have different policies as to what they're prepared to accept.

If you're still unable to shift the debt to 0%, then you'll need to take an alternative approach, i.e. do all you can to pay off the debt.  Make sure you prioritise the card that has the highest APR first, and pay minimum plus a fiver to the other card each month.

If you head over to the Debt-Free Wannabe board and post an SOA, you'll receive plenty of helpful and non-judgmental advice.

Brie

I think your best bet would be to write to the card companies and ask to be put on interest free status for a while (12 months?) so that you can clear your debt rather than pay them extra.  

I think any CC is going to be difficult to get when you are unemployed even if there is an income.  And whatever you income might be before a card is going to be offered you would have to evidence that you could afford that amount of credit plus all the credit you currently have.  You might be sure that you will use the new card to clear the old ones but the CC co can't be sure that will happen.  

You might want to post on the dealing with debt forum as there are lots of people that could advise on your budget and how to help clear your cards quicker without trying to take more credit.

Raych77

@CliveOfIndia, thanks for the advice. Sorry for my ignorance but what is an SOA???

CliveOfIndia

Raych77 said:

@CliveOfIndia, thanks for the advice. Sorry for my ignorance but what is an SOA???

Statement of Affairs: https://www.lemonfool.co.uk/financecalculators/soa.php

Basically it's a detailed breakdown of your income and expenditure, it allows you (and others) to see where money is going and where savings can be made.

Complete it as accurately as possible, select the "Format for MSE" option and copy & paste the results on the DFW board.  It's a great first step in getting a handle on your cashflow, and can often reveal unnecessary expenses which can be trimmed.

Raych77

@CliveOfIndia, that's amazing, thank you!

Grumpy_chap

When considering the OP's income being critical illness insurance, any lender is likely to consider how long the policy will continue to pay.