Sub Prime Credit Thread Part III

fairmorn308

evening troops hows everyone?

never-in-doubt

lemma1968 wrote: »

I asked this question a while ago and got only one response so here goes again.

I used to have an MBNA cc. Got defaulted about 4 years ago.

Ok so this will remain until the default reaches 6 years - so if you got it 'added' 4 years ago, it will drop off automatically in 2012... this alone will restrict you getting credit - you will struggle to get anything with the default intact.

lemma1968 wrote: »

Then came to an agreement to pay off £300pcm (minimum payment plus about another 50%). Finished paying the card off last month. Also made frequent additional payments to get rid of it. I asked for the card back when i had paid it all off ad they told me to take a hike even tho i had made all my payments and more.

The account went into default, they are unlikely to give you the card back - basically forget MBNA for the next few years they will not accept you again until they are satisifed you're no longer classed as 'high risk' to them...

lemma1968 wrote: »

Have a mobile phone on contract with o2 - had it nearly 2 years, all payments made by dd and on time.

Yep but you didn;t have a CCJ when you got the contract - plus mobiles are considered easier to obtain anyway....

lemma1968 wrote: »

I have no other credit save for an overdraft facility of £5k registered on my current account (under work address). I am yoyoing in and out of it regularly. Never had any problems tho.

You have a £5k overdraft? I assume this would have been agreed prior to the default/ccj being registered? Also, is it a business account you're talking about? You shouldn't mix addresses - i.e. you state it is your work address - National Hunter will fail you if they notice address discrepancies like applying using one address one day, and another address another day so be careful with this - may be worthwhile SAR'ing N Hunter/CIFAS at some point but no rush cos it's unlikely you'll get credit right now anyway...

lemma1968 wrote: »

I have one satisfied ccj from April 08 (to HMRC :eek::mad:)

This is what will affect you the most... a) It is reasonably new. b) It is to the government!. c) Satisfied or not - until 6yrs have passed it will be a hindrance to you....

lemma1968 wrote: »

When i looked at the quick check "how good is your credit" it came back as weak.

Now you know why - you have an active CCJ & Default. Forget the fact they are satisfied - this means nothing. You still defaulted and this will be held against you.

lemma1968 wrote: »

What do people think would be the best way to go for me?

Quit applying for things, you'll end up in a worse state - just leave things alone and wait a while. Eventually your credit score will improve and you'll notice the odd company will start to accept you.

Maybe go for Vanquis and if they decline you, forget applying elsewhere for at least 6 months until your credit file starts to improve.

lemma1968 wrote: »

I'm really confused by the whole thing.

It appears that way - have a mooch here for guidance on what CRA's do and what info they hold on you etc...Credit Reference Agencies

lemma1968 wrote: »

p.s. i'm self employed.

Self employed won't affect you generally speaking - its the adverse data that is affecting you.

Good luck

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lemma1968 wrote: »

We applied to go on the electoral roll this time last year but missed the automatic date, they have confirmed i will be on the roll from december 1st this year. I thought we were on it after applying last year.

Vanquis or Barclaycard Initial.

Thanks for your help.

You should already be on, they operate rolling register so each month they perform updates. have you even seen your Experian and Equifax credit file yet? Order a copy and don't apply for barclaycard, they will not accept you.

Let us know what your credit report says when you get it!

lemma1968

Thanks NID - my overdraft is on my normal current account.

I have a very good income and have had an exemplary record with the bank.

I had it registered at my work address because we left the UK in 2005 for about 18 months and had no residential address here. I wanted to ensure i got all correspondence from the bank so that was the best way round. I will have that address amended to my home address.

Re the electoral roll - i spoke to the council electoral office 2 weeks ago. The form we completed and sent back this time last year was 2 weeks late so did not qualify for the rolling registration. We apparently had to fill in another form to do that but did not realise. Its all sorted now. We are still registered at our last address tho.

izools

OK cool.

Before applying to anyone, even Vanquis, ensure to change the address of your bank account to your current address, and wait for the electoral role goes through.

It can take a few months for the address to update on your credit file, Lloyds TSB for example only update every three months.

Get a copy of your credit report in January and if it shows your current account at your current address, and your electoral registration as live at your current address, you should be alright applying for a "credit builder" card like Vanquis.

Please remember though - taking out a Vanquis should only be done as a credit building exercise - their interest rates are sky high but you need to earn some repayment history on a card like this to show future creditors that you can run a credit card without defaulting.

If you get approved for a Vanquis card it would be a good idea to set up a direct debit for the full payment to be taken from your current account each month so you don't get charged interest. Use the Vanquis card occasionally instead of your debit card, and this builds positive history.

After about six months to a year with a Vanquis card you could apply for Capital One Classic, another credit builder to pay off in full each month, and once you've had those two for a couple of years building positive repayment history you should be hot to trot getting mainstream credit - some companies like Sygma and RBS only pay attention to your last three years of credit history, as long as the last three years has been flawless -

This is why people with CCJs have been able to get a low interest Sygma card - because those people have had a flawless record for atleast 36 months

Anyway good luck & keep us posted

Innocent_Guy

izools wrote: »

I should (fingers crossed!!) get my first Vanquis limit increase on Monday - I better do anyway or I'll consider closing the darn thing

Make sure you update the Vanquis increase/statements thread

Innocent_Guy

Good Morning all!

joel10873

izools wrote: »

... Just applied for Barclaycard Initial and got the "We need more information" result.

I have five active accounts at my current address, two credit cards and three bank accounts. I bank with Barclays, too.

I should've held off because I'm not on the electoral role yet but I couldn't help myself as Equifax "Corrected" some stuff on my credit report... linked address stuff... I thought I should give it a go before the "Mistake" got "Un-corrected"

Has anyone else had success with the "We need more information"? If my thinking is correct Barclays won't have seen any adverse in that credit check...

Hi Izools i see you got the go ahead after the "need more info" did you get a letter saying they just need you to sign to confirm the amended T&C's and would send card when they recieved it back???

i had that letter last weeks and am still crossing fingers it will go through!!

haraltremorian

After 6 months past the end of my DMP Vanquis said yes last week so that is another wee dance for me in the climb back up the credit ladder.

£500 credit limit given with 1 default on my CR and old missed payments with no O/S accounts. They do like pushing the initial cash advance though don't they?

Capital One said yes one month after I finished my DMP.

So: Capital One: £200, Vanquis: £500 and JD Williams £600

All possible after reading the fine advice on this thread. :j

robbo990

JD Williams upped my limit again - from £900 to £1300

izools

Innocent_Guy Yup will be checking my Vanquis balance with baited breath tomorrow and update if I get an increase!

joel10873 I applied for the Barclaycard Initial on Monday and got the "We need more information" but was accepted later that day. I imagine it wasn't instant as I'm not on the electoral role at this address but I do have five active accounts all green zeroes at this address and I bank / have my salary mandated to Barclays, so they could verify my ID and Income through that I suppose.

Didn't have to sign anything, card arrived Friday no questions asked

haraltremorian Congratulations on getting accepted by Vanquis! £500 is good to as they usually start applicants on £250. Is / are your default(s) still outstanding or just settled but still on your file? You could look at a Barclaycard Initial in six months time - they can be a good long term punt also, I've found if you use the card for a year and clear the balance, call them to close the account, they'll reduce the limit.

Last time I was a Barclaycard customer, they reduced my APR to 19.9% after one year, and again to 9.9% APR after two years. Incredible APR for good customers... got a way to go to work my new account down to that APR again though!!