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Will staggered credit card repayments effect credit rating?
shizaster
Posts: 3 Newbie
in Credit cards
I owe money on 4 separate credit cards totaling £14000.
Although placing the debt on the cards was my only option at the time, the monthly interest is becoming increasingly heavy and I am not getting them paid off as fast as i would like.
I've spent the last 12 months paying approximately double the minimum payment on each card.
Two of the cards belong to my mother and one to my partner so it is also important to me to get this debt out of their names and into my own.
I just secured a flexible low interest loan in order to completely clear the debt from the cards.
In regards to credit ratings, is it advisable to immediately clear the debt on each card with a single payment or to stagger the payments out and pay say £500 per week off each of them until the balance is cleared.
Is there any benefit to doing this?
Any advice on the best way to proceed would be appreciated.
Although placing the debt on the cards was my only option at the time, the monthly interest is becoming increasingly heavy and I am not getting them paid off as fast as i would like.
I've spent the last 12 months paying approximately double the minimum payment on each card.
Two of the cards belong to my mother and one to my partner so it is also important to me to get this debt out of their names and into my own.
I just secured a flexible low interest loan in order to completely clear the debt from the cards.
In regards to credit ratings, is it advisable to immediately clear the debt on each card with a single payment or to stagger the payments out and pay say £500 per week off each of them until the balance is cleared.
Is there any benefit to doing this?
Any advice on the best way to proceed would be appreciated.
0
Comments
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Lenders will view you more positively if you clear the balance. Then use the card(s) regularly and clear in full each month.
This applies to the respective debts of you, your partner and mother. Get your debts cleared ASAP.
It's particularly important for you, as you've now increased your debt with the consolidation loan.0 -
Just pay the lot ASAP - to not do so incurs unnecessary interest and affects the cardholder's ability to apply for credit for themselves if it was needed.I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
Thank you both for your quick and unambiguous replies.
This is was the answer i was hoping for... it is so much simpler!
Will holding so much debt on those cards for 12+ months have had much negative effect on their respective credit ratings?0 -
They don't have credit ratings - just credit files.
It will be up to each lender to decide how they rate someone who carried a debt for a year, but is now clear.
If payments were made on time, it shouldn't be too disastrous.0
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