How do you get % C Card when have Bad Credit

archos591

It's a chicken and egg situation.
I have 10k on a credit card and need to get it over to a 0% balance transfer card, as the interest is crippling me.
But I cannot get a 0% new card, because I have issues on my Credit rating from around 5 years ago.
Can I get a any such card or is there a better way can I manage this account? (what loan would accept me, shall I put onto Mortgage etc)
Many Thanks.

lisyloo

But I cannot get a 0% new card

How do you now?
Have you tried? If so how many applications recently? (lots of applications on your credit report can be bad).

Have you tried applying for lower rate cards?
Have you asked your current lender if there is any better deal they can offer you for the debt?

is there a better way can I manage this account?

There are 2 issues here.
One is that it appears that you have overspent.
Have you addressed this issue yet?

If yes then it's a case of sorting out the debt.
Do you have a mortgage that you could put it on?
Have you called them to see if that's a possibility?

bear in mind that if you pay for debt over 25 yeatrs it can actually be MORE expensive even though the rate is lower, so you still want to aim to get it paid of ASAP (by either making overpayments or savings).
It shouldn't be used as an excuse to not pay back the debt or get into even more debt.

I think we need a few answers to the questions above before people can offer more advice.

archos591

Lisyloo

Yep, I have tried to get 0% cards and been turned down to to Credit Score -only tried twice as I know it affects the Credit Score even more with more applications.
I have just asked my lender for a lower rate and they have bought it from 15.9 to 4.5% - and backdated for 2 months!!!!!!

I have addressed the overspending - it was a one off to purchase another property (the deposit). So I could put iot onto a mortgage but, as you say, it's over the next 21 years then isn't it and lowering the equity in that property?!

chappers

If you've got it down to 4.5% then i doubt you'll find it any better on your mortgage anyway.

lisyloo

I have just asked my lender for a lower rate and they have bought it from 15.9 to 4.5% - and backdated for 2 months!!!!!!

That's fantastic !!

So I could put iot onto a mortgage but, as you say, it's over the next 21 years then isn't it and lowering the equity in that property?!

Well you can borrow money off a mortgage and pay it off in 3 years if you like (provided you don't penalties of course).
You don't have to just stick to the monthly payments.
You can voluntarily overpay.
Yes a mortgage over 25 (or 21) years is probably more expensive that a 3 year loan at a higher rate, but the ideal sitaution is mortgage rate for 3 years.
A few mortgages charge you penalties so you would need to check this situation but many allow at least 10% of the capital to be repaid per year penalty free.

You are right about lowering the equity but that should be only temporary as you raise it ech month with oevrpayments.

O course there can be fees with mortgages (legal, valuation, application etc.) so you have to weigh that up too.

At the moment I don't think you'll beat that 4.5%, so that's a great result, well done.