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5k debt and cant get credit
kafino
Posts: 15 Forumite
Hello
I was hoping someone could give me any advice on my current situation. About 2 years ago I had an overdraft facility with Natwest of about £4.400 which was reached to the maximum and stopped paying into that account. Clearly that was a mistake as they eventually froze the account and threatened action against me. Since then I worked a deal with them to repay a certain amount back per month until it clears. This is interest free although even when i pay it off i cant get credit for awhile apparently, so they explained.
What i am asking is how can I get some kind of finance to buy a car for example? What is the best way to build up my credit again as quickly as possible? Even if i clear the debt why does my credit not become good again?
Many thanks in advance.
I was hoping someone could give me any advice on my current situation. About 2 years ago I had an overdraft facility with Natwest of about £4.400 which was reached to the maximum and stopped paying into that account. Clearly that was a mistake as they eventually froze the account and threatened action against me. Since then I worked a deal with them to repay a certain amount back per month until it clears. This is interest free although even when i pay it off i cant get credit for awhile apparently, so they explained.
What i am asking is how can I get some kind of finance to buy a car for example? What is the best way to build up my credit again as quickly as possible? Even if i clear the debt why does my credit not become good again?
Many thanks in advance.
0
Comments
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Because a default will show on your files for 6 years0
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Basically, for the next 6 years it will show that you borrowed money and did not pay it back. This is to warn lenders that you did not honor your end of the deal/arrangement.
Having this on your credit file will make people you are trying to borrow money off in the future realise that you have a high risk of not paying it back based on your previous history.
Typically, the only way to borrow while in this situation is to borrow at an extremely high rate from a shady lender, which I personally would not recommend.0
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