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Ex- Credit Analyst - Throw your Credit & Underwriting Q's at me.
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gaelicgirl wrote: »Hi, I have two CCJ's, and have been told by Equifax that they will disappear off my credit file in Dec this year - should I pay them back or shall I just bide my time and let them go off my file?? Please advise, not sure what is best as I don't know how to go about these things!!)
Its your choice wether to clear them or not, Im not too sure on the law on the amount owed and what happens after the 6 years. However once they are off your file in December, they are off for good. They wont reappear even if you start or stop paying the CCJ.0 -
SirSaverOBE wrote: »URGENT MORTGAGE QUESTION
When you apply for a mortage, is it generally true that debts that are due to be cleared in the next 6 months are not taken into account?
Also - if I have debts (which I do!) but am not paying a pension at the moment, will that help as it will not be part of my outgoings? I was hoping my not paying a pension right now would off-set my personal loan payment.
Any advice gratefully received!
Sir Saver
When I used to have a Mort with Abbey they didnt take balances of loans that were due to end in the next 6 months.
I only used to lend unsecured so Im not too sure what they will and wont allow. perhaps take a look at the mortgage board threads ?0 -
My sister in law has a large amount of debt on two cards (approx 9,000). She is paying a horrendous amount of interest (19%) on these. Is there an easy way of transferring the debt to other cards/loans, seeing that she is now out of work, in order to reduce the interest rate she has now.
Hi,
I very much doubt another lender would give her a credit facility whilst not working, so her chances of gettong a card or loan with a lower rate are very slim. The only options really are siply to try her luck and apply to a lender.. see how they bite, to contact the lender and simply ask to reduce the interest rate. If the account is in arrears she can speak with them about stopping fees and interest alltogether, but the account more than liklety would have to be in quite serious arrears for them to do this.
Hope that helps.
Mike0 -
~evanesco~ wrote: »I've got a quick Q for you Mike.
I had an administration order, which to obtain I had to have a CCJ. That was in Oct 2002. Last Oct (2006) the Judge deemed it settled, would the CCJ still remain on my file? I have been doing some damage limitation (and damage casuing:rolleyes:) in the meantime. I've got a couple of catalogues, a CC and a mobile phone contract. I know that I have only missed 1 payment on 2 of these, should my credit file be repairing itself? However, I have recently been rejected for a lower APR CC, so that's damaging, right? I only want it repaired for piece of mind, not so I can go destroying it again, I'm well and truely a DFW.
Evans. xox
Howdy !
The CCJ will be on your file for the full 6 years, regardless of if it is settled or not. Once the 6 years is up, the CCJ will drop off your file.
The odds and sods with the odd missed payment are not really a concern, as long as they are one offs then you should have no problems there. Your issue is with the CCj, Most lenders will decline on this alone, especially if its a great amount.
There are odd lenders who will offer you cards etc... but you will pay for them in relation to the interest rate, or indeed offer a very low credit limit.
But banks are what we know.. very unpredictable. I have known Bankrupt people to be given £10k cards before now !!!
Sorry I cant help more....0 -
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Hi Mike,
First I'd like to say that I think it 's really great of you to offer advice in this way. :T
My question, if you can help, is this ; I have quite a lot of debt on credit cards, which is just about manageable for me at the moment, as I transfer the balances where possible to maintain an overall low-ish interest rate. Regarding my credit rating, I wondered if it's worthwhile reducing the credit limits on the Fixed-for-life-of-balance-cards I have so I have less credit available in total- would this improve my credit score for when I need to apply for another card? Also, does it improve the credit score to cancel cards which have a zero balance? I don't think my credit score is particularly bad but I'd like to optimise it! Many thanks
Hi there...
Good question. Now some lenders will approve you on having good credit, then they will play 'match or beat' in essence this means they look for your highest limit and try to match or beat it, in order for you to favour them.
Oter lenders will approve up to the amount you need to transfer. All lenders vary massivley in what they will or wont lend yuou amount wise.... Its good to not have a massive amount in availible credit, some lenders may decline you simply because you have enough availible credit to spend. Id say no more than 2x your incom,e if you have good limits. And 1x your income on the balances ( ie the debt ) is a no no...
Mike0 -
hey mike nice to see you back not seen you around for a while i miss the afternoon drinks0
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Mike_St_Helens wrote: »:eek: :eek:
I truly had no idea this thread had surfaced again...
I shall go through the last questions this weekend and promise to get back to everyone who needs somethng.
Mike
Hey Mike,
It's the weekend yipeeeeee!!!
Looks you might not get much time off with all these questions to answer; you could do with a secretary :rotfl:
Rich0 -
Bit embarrassed to ask this, as it's a really dim question, but where else will I get a chance to ask an expert without blushing?
What exactly is a default? I sort of assumed it was an unpaid debt that looked like the person had no intention of paying (the moonlight flit scenario, if you like).
I almost always pay the full balance of my credit card bill each month, but sometimes - mainly due to moving around the country with my job & not always logging on to view my bill online (because I'm not at home to receive a paper one) or forgetting that online banking payments take forever to clear, I have paid the bill a few days late.
I recognise that this means I pay interest, and penalty charges, but is this kind of "oversight" late payment also called a default?
If so, I guess it would affect my credit score if I wanted a mortgage, wouldn't it?
Hi there.... Welcome !
Ok. A default is where you have missed the contractual payments on a loan or other credit facility. Some lenders will default you immidiatly after missing payments, some will let you go up to 8 months into arrears. The default means as you have breached the agreement, you have forefitted the right to pay in installments as per the agreement, so the whole balance becomes due.
I very much doubt your lender will punish you for paying a few days late, indeed I doubt it even appears on your credit file, as most klenders dont report stright away, you have the 'chance' to pay fairky quickly. It certainly isnt a default in the moral term, factually I guess it is a default as you havent stuck to the letter of the agreement. But I really really wouldnt worry. Youir lender will hold you in good regard if you clear balances monthly and let them charge you the £15 or so fee... Set up a Direct Debit or something.... Cost you much less.
There is no need to worry as long as it is only a couple of days.
Mike0 -
Georgecarol wrote: »Hi Mike
Great thread. I have what may seem like a silly question, not sure. I'm trying to find out info for someone and as I've never had a credit card, I've been trawling this site and haven't come up with the answer. For the 6 year rule to apply on a debt, when does that 6 years start? Is it the date the card is issued, the date of the last payment, or is there a default date other than that? If it's a default date, how does she find out what that date is????
It is generally the last date of contact, which usually is the last payment date.
The default date is on your friends credit file.
EVERY time your friend contacts the lender, technically the 6 years starts again unless they specifically state that they do not acknowlege the debt on correspondance.
Mike0
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