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  1. #1

    Query re: existing credit cards and new bad credit

    Hi all, I wondered if someone can help me with my query.

    I have 3 credit cards with a total of around 9k on - I am managing to pay the minimum on 2 of the 3 (the 3rd I explain a bit further down), plus quarterly lump sums from my work bonus to try and lower this. I also have 2 loans that I am struggling to pay off, and have missed a couple of payments on. I am negotiating directly with the loan providers to freeze the account and hopefully repay the full amount back.

    My question is, will this newly acquired bad credit from the missed loan payments affect my current credit cards? Will my CC providers look to close the accounts once I pay them off, or will they disregard this and just see the fact I've never missed a payment and let me keep the card as normal. I have 1 card that I use for household bills (food shopping, petrol, gas / electric) which I pay off in full every month and really don't want the card closed as I need it to get through the month

  2. #2
    How long is a piece of string?

    Lenders do get regular updates on your credit profile so if they decided to limit their risk they can.

    If you "need" a credit card to get through the month, then you are living in credit. Perhaps you should post an SOA (statement of affairs) so that people can help you lower your costs so you don't live using the banks cash.

  3. #3
    No they shouldn't do, unless they feel you are not keeping up with your agreements with the credit cards.

    At the moment they are making money off you in interest

  4. #4
    There is no definitive answer. Generally, companies have automated screening which will annually review your credit file. This is also used in the decision making process of a credit limit increase.

    Common belief is that once a customer is accepted for a credit card, the lender will not perform regular affordability checks. This is most untrue and in fact, lenders are required to perform them constantly.

    If the lender notices dire changes in your financial health, there a few processes which might be followed. This can range from a credit line amendment to termination of your credit agreement - if the risk of defaulting becomes excessive. More minor interactions can range from an informational alert to a summary of borrowing.

    You are advised not to continue accumulating debt. Even if a lender doesn't change your standing with them, let them know immediately of any significant change in your circumstances.

  5. #5
    OP you don't stay how much your total debt is - there are options - you just need to pluck up the courage to discuss them with a charity such as Stepchange.


 

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