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Hi all,
I’m hoping someone with experience of business credit card guarantees or credit reporting can give me a bit of guidance.
I was guarantor on a Capital on Tap business credit card. Since the business closed, I accept I’m responsible for the balance personally under the guarantee. I’ve been cooperative from the very beginning – I’ve never disputed liability, I’ve been upfront with them, and I’ve done a full income/expenditure breakdown to show what I can realistically afford.
The issue is the repayment structure. Capital on Tap require a minimum of 10% of the balance each month, which is way above what I can manage. I’ve been making payments, but less than this 10%. As a result, they’re reporting me to the credit reference agencies as being in arrears.
From my point of view:
I’ve read mixed things about “arrangement to pay” markers – some say they’re as bad as a default, others say they’re better than endless arrears. I’ve even wondered whether a full and final settlement might be an option down the line, but I’m not sure if it’s too soon.
So I’d really appreciate some advice on:
I’m not trying to avoid it – I just want to handle it responsibly and protect my credit standing as much as possible.
Thanks in advance for any thoughts or experiences.
I’m hoping someone with experience of business credit card guarantees or credit reporting can give me a bit of guidance.
I was guarantor on a Capital on Tap business credit card. Since the business closed, I accept I’m responsible for the balance personally under the guarantee. I’ve been cooperative from the very beginning – I’ve never disputed liability, I’ve been upfront with them, and I’ve done a full income/expenditure breakdown to show what I can realistically afford.
The issue is the repayment structure. Capital on Tap require a minimum of 10% of the balance each month, which is way above what I can manage. I’ve been making payments, but less than this 10%. As a result, they’re reporting me to the credit reference agencies as being in arrears.
From my point of view:
- I accept I’m liable for the balance, and I want to pay it down.
- I’m not ignoring them, I’m trying to do the right thing.
- The problem is simply the scale of the monthly minimums – they don’t match my affordability.
- My biggest worry is my credit file. Rolling arrears every month feels harsh given my will to cooperate and establish a payment plan and I’m worried about how damaging this will be long term.
I’ve read mixed things about “arrangement to pay” markers – some say they’re as bad as a default, others say they’re better than endless arrears. I’ve even wondered whether a full and final settlement might be an option down the line, but I’m not sure if it’s too soon.
So I’d really appreciate some advice on:
- What’s the least damaging option for my credit file if I can’t meet the 10% minimum?
- Is it better to try for an arrangement to pay, or keep paying what I can and accept rolling arrears?
- Are there any other options people have managed in this situation?
I’m not trying to avoid it – I just want to handle it responsibly and protect my credit standing as much as possible.
Thanks in advance for any thoughts or experiences.