Advice on approved Credit Union loan to clear credit cards

paulam

Hi

Looking for a bit of advice please? I recently applied for a Credit Union loan to clear off my credit card debt. I have been approved for the loan. At the time of application I was asked if I would be willing to close the credit card accounts. I said that I would be. To progress with the loan application I have to sign authorisation letters to close the accounts. The Credit Union will then send the letter with a cheque to clear to cards to the relevant companies.

I was just wondering if these authorisation letters would affect my credit rating in any way in terms of future loan applications for example a mortgage?

Any advice appreciated.

thanks

chris85

paulam wrote: »

Hi

Looking for a bit of advice please? I recently applied for a Credit Union loan to clear off my credit card debt. I have been approved for the loan. At the time of application I was asked if I would be willing to close the credit card accounts. I said that I would be. To progress with the loan application I have to sign authorisation letters to close the accounts. The Credit Union will then send the letter with a cheque to clear to cards to the relevant companies.

I was just wondering if these authorisation letters would affect my credit rating in any way in terms of future loan applications for example a mortgage?

Any advice appreciated.

thanks

The letter has no effect on your credit rating. Your ICB will just have shown the credit card cleared and then you have a loan from CU showing which is normal.

The CU just dont want you paying off the credit card balance and then run it up again and be in more trouble.

alivia.smither

Do u have a local money matters office or a citizens advice, what they do is write to all your creditors and agree to them stopping all interest on the bills and u send them token payments each month of what u can afford. they work out your current income and outgoings and work out what u have left at the end of each month,