Advice on clearing Creditcards

pilotpete

I'm looking for advice on the best way to clear my credit cards, I have about £6000 on a total of 3 cards, around £2k on each

I had intended getting a low interest loan, clearing the cards and closing the accounts. (5.5% I found in the banking & loans section) however was turned down.

I dont want to try other companies until I find the best solution in case any further companies declining me will affect my credit score.

Calculating on figures I have seen for the lowish interest loans around 5.5% APR I should be able to clear £7000 in 42 months comfortably. (Could do it in 36 at a push)

Any suggestions appreciated

PP

ard123en

clear the highest interst cards first, the quicker you clear your debt the better it is in the long run but dont leave yourself so skint you feel the need to start using the cards

when cards are clear dont see it as a green light not to run then back up

hope this helps

asandwhen

Have you checked with any of the cc companys to see if they will do you a lob rate - I done this recently with citi card and was paying of my credit cards at 4.9%

pilotpete

Thanks for the tip, I have just checked the APR on all 3 cards and am shocked to find that my MBNA card's APR is 24.9% !!!
Would it be wise to try to do a balance transfer, or get a smaller loan to clear it? Which would be easiest?

pp

pilotpete

a "lob rate"? Not heard of this term before, could you explain it so I know what i'm talking about when I phone them?

Looks like our posts crossed there

/pp

johannamse

Life of Balance rate card...basically means a low rate (normally 5/6/7 %) for the entire time you have that balance...be craeful though if you spend on the cards, you will not be able to pay off that amount till the other balance has been paid off... check out the credit card board

Matt83UK_2

Beware of the company offering 5.5% as it seems a scam, a typical APR must be offered to 2/3rds and it doesn't seem the case, granted usually only negative results will complain but compare this to other lenders and there's something a miss. In addition you can't just keep applying until you find one you like, because the more searches you get within 10 months the most likely it is for your case to be deferred and less favourable terms and limits offered. Evaluate what's out there, read testimonial and apply accordingly, on something like 6k a difference of 0.5% isn't worth the hassle of dealing with a shady company.

pilotpete

Taken from this site: (on uninsured loans) "Rates are currently low, and falling. Moneyback Loans* are 5.5% for loans of £1,000 and above. Northern Rock* is 5.6% for all loans above the same amount, while Barclaycard and Abbey* both have a rate of 5.7% "

It was Moneyback Loans (linked to alliance & leicester) who turned me down, and without asking forwarded my details to another loan company (dont know who, but this is what they said in a letter)

/pp

WSO

pilotpete wrote:

It was Moneyback Loans (linked to alliance & leicester) who turned me down, and without asking forwarded my details to another loan company (dont know who, but this is what they said in a letter)

Now more than ever it is important to read the "Important Information" before applying, particularly to find out how they use your data...

For instance, I am an Intelligence Finance customer and thought I could save a little bit by applying for their fixed loan - however, thought twice when I read that that, if I was unsucessful they would forward my details to another loan company for the purposes of obtaining the loan... wouldn't be so bad if you could opt in for this on application, but the way I read it you have to opt out after application in writing!

Just had a look at Moneyback Loans, and the fact that they will forward your details to third party companies who may wish to offer you a loan should you fail is clearly stated in the declaration you are asked to read before applying... you did read it didn't you?