Advice needed

ash1_2

In Jan 2004 I made my last payment to a collection company and was debt free.
I had paid off £9000 worth of debt after defaulting on a loan, credit card and overdraft, whilst young and in college.

Due to unforseen circunstances I have since had to get a £7000 loan(after a relationship breakdown) and could only do this by getting two loans from Black Horse Finance. Both loans have a apr of over 20%!!

I can cope with the repayments without any problem but I want to know if there is a better rate loan I can get to cut down how much i'll pay back and possibly pay it back quiker than the 4yrs it will currently take.

Since I was debt free I have had a Capital one credit card & CITI Bank credit card both which have high apr but both balances are kept low.

I have a cash card bank account with Nationwide for 1yr and have never missed a dd with them. In fact I have never missed a dd at my bank or a payment on my loan since i was debt free.

Can anyone give me any advice & help me answer these questions?

How long will I have a poor credit rating for?
When will I be able to approach 'high street lenders' again?
What are my chances of getting a mortgage?
Does anyone know of any credit cards I could get a 0% balance transfer on, that accept people with poor credit?
When will a bank give me a noramal current account?

Thanks
Ash

southernscouser

ash1 wrote:

Can anyone give me any advice & help me answer these questions?

How long will I have a poor credit rating for?
When will I be able to approach 'high street lenders' again?
What are my chances of getting a mortgage?
Does anyone know of any credit cards I could get a 0% balance transfer on, that accept people with poor credit?
When will a bank give me a noramal current account?

Thanks
Ash

Firstly welcome to MSE Ash.

OK, your defaults will remain on your credit file for 6 years after the were isssued. Get a copy of your report from both Equifax and Experian to check they are settled.

Alot of people say your rating is shot to pieces for the 6 years but I have read that people are obtaining credit after a couple of years.

Mortgage. I don't really know to be honest. Not brilliant I would have said but I'm don't know mortgages to well.

Have a look at https://www.moneysupermarket.com for the best deals on 0% cards or post on the credit card board for advice on cards best suited to those with defaults.

Don't know about the account either I'm afraid. Have you asked them?

Hope some of this helps.

SS

Little_Miss_Winner

HIya,

"I can cope with the repayments without any problem but I want to know if there is a better rate loan I can get to cut down how much i'll pay back and possibly pay it back quiker than the 4yrs it will currently take."

HOw much do you repay each month, and how much more can you afford?

ash1_2

Hi I pay £200 per month, £97 on one and £109 on the other. This is fine for me as I live at home with my parents but I'd like to have it paid off quicker if poss and have more money to help me save for a house deposit.

The 2nd laon PPI on it and i've been reading other threads which say I could cancel this? Do you think I should try to cancel this as I dont think I need it?

southernscouser

ash1 wrote:

The 2nd laon PPI on it and i've been reading other threads which say I could cancel this? Do you think I should try to cancel this as I dont think I need it?

Is your job secure? If so then I would. The problem is that you are only meant to cancel it within 30 days, however their seems to be a loophole, think it's got something to do with it being mis-sold to you or something.

Have a look at this thread for more info. I think you might need to PM the OP (original poster) for a template letter though.

bluekp

Have you tried applying for a Virgin credit card - they offer a 0% balance transfer (including loan transfers) for 9 months from opening?

ash1_2

I havent tried applying for any other cards yet as i have poor credit i will get refused which will go against me.

I'm looking for a company that will specialise in people with past credit problems.

skintchick

ash1 wrote:

Hi I pay £200 per month, £97 on one and £109 on the other. This is fine for me as I live at home with my parents but I'd like to have it paid off quicker if poss and have more money to help me save for a house deposit.

The 2nd laon PPI on it and i've been reading other threads which say I could cancel this? Do you think I should try to cancel this as I dont think I need it?

What are your other outgoings, and your wage? Perhaps we can 'find' you some more money!!

ash1_2

Ok here goes.

I bring home £950 a month.

I pay my dad £100 (that i owe him for a car loan - only 9 payments left)
I pay my mum £100 rent.
I pay Black Horse Finance £90.57 on one loan
And Black Horse £107.98 on a 2nd loan (this is made up of £86 loan payment & £22 PPI -which i'm looking into canceling after reading other threads on here)
I pay £60 car insurance
I have to use £100 per month fuel costs( for work)
I have £1150 on CITI card apr 22% min payment £35 + what ever else I can afford (credit limit 1500)
I have £497 on a Capital one card at apr 24% min payment £15 + wat else i can afford (credit limit £600)
I have a phone bill to pay aprox £50 per month.
I place £30 a month into a ISA

The reason i'm looking at ways to save money is that i'm 26 now and i need to move out this will cost me aprx £500 a month which will leave me in - figures each month.

southernscouser

Use whatever is in your ISA to pay off your debts!

The interest you get from your ISA is gonna be about 5% yet you are paying over 20% on your debts! Therefore you are actaully losing money if that makes sense!

ash1_2

My ISA only started last year so only has £90 in it. Do you think i'd be better just paying it of my credit card.