Interest freeze and credit score?

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PNebb
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.

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  • kwame41
    kwame41 Posts: 168 Forumite
    edited 16 October 2018 at 3:05PM
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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.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    If you expect the arrangement to go on for more than a few months, you'll be better off with a default.
  • PNebb
    PNebb Posts: 9 Forumite
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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!
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    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.
  • PNebb
    PNebb Posts: 9 Forumite
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    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:
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Personally, I would protect your credit file.
  • Nasqueron
    Nasqueron Posts: 8,827 Forumite
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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
  • chattychappy
    chattychappy Posts: 7,302 Forumite
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    PNebb wrote: »
    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...
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    Remember your score is only seen by you, your history is what lenders can see.
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