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Paying old debt in new credit card

5 replies

rasberi · 26/04/2021 09:59

Hi all I wondered if I could get some money advice.
I have a payment plan on an old credit card I defaulted on. I'm paying about ten pounds a month and the balance is around 1000.
I am trying to improve my credit score so I want to pay this off ASAP.
I have another credit card that I have been using to rebuild my credit. I pay this off mostly in full monthly and the balance is low.
Would it be worth paying off my old credit card with my new credit card? Least then I won't be defaulting although i know it will stay on my credit rating for years
Thanks

OP posts:
MamboVipi · 26/04/2021 23:30

Its not advised to pay off existing debt with a credit card. In fact I'm 99% sure a credit card company won't let you.

Reiningitin · 27/04/2021 22:21

Well I took out a 0% money transfer on one credit card to pay off existing debt that was costing me far more than the repayments for the money transfer. Obviously there was a fee to pay but that was negligible considering. Look out for 0% money transfer offers on your new credit card.

BarbaraofSeville · 28/04/2021 03:00

@MamboVipi

Its not advised to pay off existing debt with a credit card. In fact I'm 99% sure a credit card company won't let you.
Total rubbish. Moving a balance from one account to another can be the best way to get out of debt if you reduce the amount of interest you are paying.

OP as you will have a poor credit history, you probably won't qualify for any new offers but it's probably worth looking online or phoning your provider to see if there's any balance transfer offers on your other card.

If you do this, you won't be able to use the card for spending any more as any new spend will have interest charged because there's a running balance on the card but you might be able to use your other card that was in default again once the balance is cleared unless the bank cancelled this due to the default. Or you might be able to get another credit builder card to use. Read about all the ins and outs on moneysavingexpert.

If you take up a balance transfer offer, set up a standing order to pay a fraction of the balance each month so it's paid off by the end of the offer, eg if they give you 18 months at a low rate or 0% pay at least £50 a month. If you can't afford that, pay the minimum payment plus at least £1 as that will remove the minimum payment marker from your credit file.

MamboVipi · 30/04/2021 02:52

Er no you cannot pay a debt that has been defaulted on and has a payment plan with a credit card.

Of course you can transfer debt from an existing credit card to another 0% card. But that's not what the op was asking.

MamboVipi · 30/04/2021 10:27

^If the debt has been sold to a debt collection agency you can't do it.

Unless you used the new credit card to withdraw cash but that is a bad idea as the interest on cash withdrawals is high.

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