Combining credit card & c/u loan

Play Bunny

Guys need advice, (crap when it comes to money well working out what to do).

I have a credit union loan for my car 4,500e (10% apr for each yr, approx 4 yrs left on it)

Have a credit card loan of 3,500 (Cash -1.53 % & Retail 1.46 % per mth),

I was thinking of asking the c/u for a "personal loan, i.e top up), would it be advisable with those interest rates, I know MBNA/ADVANT are the dearest for rates and tbh id like to do away with a credit card,

Any advice???, btw I am paying the credit union off no probs per mth, and working on credit card BUT I want to cut down on finance charges, interest etc trying to get the cheapest way if possible

byronbay2

Yeah, good idea - if the CU will give you the extra money. Credit card debt is extremely expensive and the card should not really be used for debt at all i.e it should only be used strictly for credit, with the full bill paid off each month. Once you fall behind on your CC repayments it becomes very hard to catch up, with the interest being added each month.

I'd say if you go to the CU and explain the situation, they will give you the loan, based on your good repayment record and assuming you have some savings in there as well. However, you need to make sure that you don't fall into the same trap again with the credit card - you MUST pay the full amount of the bill each month.

wmpdd3

The credit union week usually ask you to close the credit card account in my experience.

Play Bunny

byronbay2 wrote: »

Yeah, good idea - if the CU will give you the extra money. Credit card debt is extremely expensive and the card should not really be used for debt at all i.e it should only be used strictly for credit, with the full bill paid off each month. Once you fall behind on your CC repayments it becomes very hard to catch up, with the interest being added each month.

I'd say if you go to the CU and explain the situation, they will give you the loan, based on your good repayment record and assuming you have some savings in there as well. However, you need to make sure that you don't fall into the same trap again with the credit card - you MUST pay the full amount of the bill each month.

Yea the interest is a pain don't worry I'd be putting the credit card into retirement for sure, we bought a new bed/Suite of furniture etc so kinda got carried away normally I pay it as I use it, I've never missed a repayment the girl in the c/u actually said I was very good for repaying.

@wmpdd3 - I was going to say it was for home improvements which it is well on the c/c I won't be mentioning credit card to them, wouldn't mind I will be able to up my repayments per month providing I get the loan, wasn't sure whether it was worth applying but think I will....

Thanks

Anyone

Play Bunny wrote: »

Yea the interest is a pain don't worry I'd be putting the credit card into retirement for sure, we bought a new bed/Suite of furniture etc so kinda got carried away normally I pay it as I use it, I've never missed a repayment the girl in the c/u actually said I was very good for repaying.

@wmpdd3 - I was going to say it was for home improvements which it is well on the c/c I won't be mentioning credit card to them, wouldn't mind I will be able to up my repayments per month providing I get the loan, wasn't sure whether it was worth applying but think I will....

Thanks

So you plan to close the credit card anyway, but you will lie to the credit union to get the loan? Tell them the truth why you want the loan is my opinion.

byronbay2

Play Bunny wrote: »

Yea the interest is a pain don't worry I'd be putting the credit card into retirement for sure, we bought a new bed/Suite of furniture etc so kinda got carried away normally I pay it as I use it, I've never missed a repayment the girl in the c/u actually said I was very good for repaying.

@wmpdd3 - I was going to say it was for home improvements which it is well on the c/c I won't be mentioning credit card to them, wouldn't mind I will be able to up my repayments per month providing I get the loan, wasn't sure whether it was worth applying but think I will....

Thanks

You sound like you're in a reasonably good position financially so, if I were you, I'd be honest with the CU and just explain the situation and tell them what you want to do and your rationale behind the decision. I don't think it will be a problem.

However, I don't think you should "retire" the credit card, unless you have another one that you can use instead or you think that you can't control your spending, which doesn't seem likely. A CC is a wonderful facility for short-term credit (unlike these "Payday Loans" BS some people use) and is a boon when used properly i.e getting up to 54 days free credit. Also, a CC is vital for booking flights, hotels, car hire etc.

Play Bunny

byronbay2 wrote: »

You sound like you're in a reasonably good position financially so, if I were you, I'd be honest with the CU and just explain the situation and tell them what you want to do and your rationale behind the decision. I don't think it will be a problem.

However, I don't think you should "retire" the credit card, unless you have another one that you can use instead or you think that you can't control your spending, which doesn't seem likely. A CC is a wonderful facility for short-term credit (unlike these "Payday Loans" BS some people use) and is a boon when used properly i.e getting up to 54 days free credit. Also, a CC is vital for booking flights, hotels, car hire etc.

Well financially we would incl the cu in the monthly bills so it gets paid & I've never defaulted,credit card gets money allocated 2, the last spends where a last min thing hense no saving for them. I will hang on2 card but I'm strong willed to say enough is enough so will put it away and if I use it pay it, any big items will now get saved for 1st....

I will have a chat to them and see, so financially it makes sense to have the 1 loan, just wanted to be sure, hate owing money but so does every1 else

wmpdd3

You will have to tell the CU about the CC as they will see it when they check your ICB report. Best to show them the repayment you are making to the CC and tell them that will be going to the CU.