Credit Cards and Rating

[FlippedOut]

Morning all,

My wife has just got of the phone to out Credit Card company as we have a 15K debt with them, and like most due to our current economic times, our cash flow has dried up due to cut backs in work, etc etc. She asked them if they would be able to reduce the interest for a while so that we can catch up with ourselves. There was a flay NO from the kind person on the other end. They then said we could request for it to be sent to the debt collectors section where interest will be stopped and my credit rating will be affected.

I wanted to ask if Credit Rating will be affected, as I thought the only way it was effected was if a debt went through courts? We are Southern Ireland BTW.

We have also tried moving the balance over to other cards, and so far only one has said yes, and they would only take 2500 of the debt.

Look forward to your replies,

Flip

 

[moneyhoney]

Morning all,

My wife has just got of the phone to out Credit Card company as we have a 15K debt with them, and like most due to our current economic times, our cash flow has dried up due to cut backs in work, etc etc. She asked them if they would be able to reduce the interest for a while so that we can catch up with ourselves. There was a flay NO from the kind person on the other end. They then said we could request for it to be sent to the debt collectors section where interest will be stopped and my credit rating will be affected.

I wanted to ask if Credit Rating will be affected, as I thought the only way it was effected was if a debt went through courts? We are Southern Ireland BTW.

We have also tried moving the balance over to other cards, and so far only one has said yes, and they would only take 2500 of the debt.

Look forward to your replies,

Flip

Is this MBNA by any chance?

I was advised to try to reduce interest rate with them once & they were having none of it, so I switched to Halifax.

Anyway, your credit card is recorded on your credit file with the Irish credit Bureau www.icb.ie. Your cc company (and any other lender) reports details of balances, payments etc. to the ICB. If you get interest frozen & your debt moves to another dept. this would be recorded on your credit history - I'm not sure as what as the ICB site doesn't give a whole lot of detail. It says:

Your credit report includes: your name, date of birth, address(es) used by you in relation to financial transactions
the names of lenders and account numbers of loans you currently hold, or that were active within the last five years;
repayments made or missed for each month on each loan;
the failure to clear off any loan;
loans that were settled for less than you owed; and
legal actions your lender took against you

So, the ICB reflects a full picture of your credit history, good and/or bad.