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Interest freeze and credit score?
PNebb
Posts: 9 Forumite
in Credit cards
hi,
Just a quick query - if i call my credit card company and ask for an interest freeze because the payments are getting a bit out of hand (£3-400 per month) and the total amount is very high - how much of an impact will that have on my credit score?
Thank you in advance.
Just a quick query - if i call my credit card company and ask for an interest freeze because the payments are getting a bit out of hand (£3-400 per month) and the total amount is very high - how much of an impact will that have on my credit score?
Thank you in advance.
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Comments
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Likelyhood is if they agree it will be marked as an arrangement on your credit file.
Your score is meaningless it the history thats important. An arrangement wont be viewed well but its better than a default.0 -
If you expect the arrangement to go on for more than a few months, you'll be better off with a default.0
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Ok thanks, I'm not really at crippling level of debt at the moment, just close to (enough to cause a limp at least!)
Out of interest, why would a default be better than a longer-term arrangement? Just how it is scored/recorded?
Thanks once again!0 -
It's because any marker will drop off after 6 years. So running an arrangement for a year or so will mean you still have this on your file for 7 years, compared to a default.
An arrangement is just a polite way of saying default.0 -
Smashing, thanks for the enlightenment.
Given that we will hopefully look to move house within 6 years, I'm now stuck between - arrange/default so we can maybe afford to move but have a mortgage refused, or just don't have the money all together... decisions decisions... :money:0 -
Personally, I would protect your credit file.0
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Debt free wannabe page is your friend, statement of affairs and see what you can cut. When you say "we" I assume couple? Can one of you get a balance transfer card perhaps and get rid of some / all of the debt onto a 0% card so you can tackle it more easily? Even if it's a low rate rather than 0% or a small balance it'll all help
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Just a quick query - if i call my credit card company and ask for an interest freeze because the payments are getting a bit out of hand (£3-400 per month) and the total amount is very high -
How much of that is interest, what is your APR?
Have you tried the eligibility checker to see if you can get a balance transfer card?
But don't consider a new card if it will encourage you to spend more...0 -
Remember your score is only seen by you, your history is what lenders can see.0
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