Low credit cards and current accounts

spoony1967

Hi all

Im new here and hopefully can get some usefull advice from some of you.

Basically our credit score is on the floor as we have several buy to let properties and have been in our overdraught for the past year. We have no defaulted payments of any kind on loans, mortgages or anything else.
What has happened is that having BTL's and paying on time gave a good credit score, now gives a bad score even with no missed or late payments.
In other words, the banks changed the rules on us because they saw owning the properties as a liability so restricted all normal credit lines to us. This has put us in a more dificult position as my job (Floorlayer) has been hit by the credit crunch quite hard. ( service industry, non essentials in hard times)

The result is that we are in a vulnerable position until work gets a bit better again ( The houses are more than paying for themselves ) but the restrictions the banks have placed simply because we own properties mean that we are in a temporary financial hole.

A- Can anyone suggest a current account for low credit ratings

B- Credit cards for the same


I have never owned a credit card and frankly am really unhappy that the banks attitude to our position, is in fact the reason we are in such a bad situation. They have created their own self-fulfilling-prophecy.

Cheers

Kev.

PNPSUKNET

Landlords should have enough money if you say that the propertys pay more than for themself, why need credit?

Mozette

Have you tried the bank where you have your current account? Otherwise have a look on the sub-prime thread, they would have better suggestions.

spoony1967

Thanks PNPSUKNET

I think I can count you out of the descent and helpful sorts on here then.

If you read my post properly you will find that although the properties pay for themselves with some left over. That will be needed for repairs/voids etc.
What do you think me and my family of 3 kids are going to live on while my job as a floorlayer is hardly bringing in enough?
Try to imagine that not all landlords are rich t*ssers who deserve no sympathy. Try to imagine a guy who has crawled around on floors for 25 years then decided to do something different and escape the rat race about five years ago. Admittedly I should have left myself a bit more of a emergency fund, but that's my mistake I now have to pay the price for.
So if anyone else that doesn't have the preconceptions of the above person, has anything helpful to contribute to my question, I would be really pleased to speak.

Forgive me as a newbie for my annoyance, but I came on here for help, not blunt, unsympathetic and stereotypical distorted views from someone with too much time on their hands.

Kev.

spoony1967

Thanks Mozette

obviously you are not the above person ( you nipped in and posted while I was replying to PNPSUKNET)
I shall try the thread you suggest. Thanks.
My own Bank Lloyds, are not being very helpful, shall we say, thus the search for another. Its the credit cards i need more advice on.
If I can get through the next 6 months, my work is picking up and looking better so its just now were struggling.

Kev

Parki_2

Why would your credit score be poor if you have no missed payments or defaults? You might not need to go sub prime it might be worth applying for a mainstream credit card and current account first.

Mozette

If he's never had a credit card might it be bad? Capital One do cards for those with less than perfect credit scores.

Anyway, best of luck Kev, hope you find something.

Parki_2

What bank are you currently with?

jonesMUFCforever

spoony1967 wrote: »

Hi all

Im new here and hopefully can get some usefull advice from some of you.

Basically our credit score is on the floor as we have several buy to let properties and have been in our overdraught for the past year. We have no defaulted payments of any kind on loans, mortgages or anything else.
What has happened is that having BTL's and paying on time gave a good credit score, now gives a bad score even with no missed or late payments.
In other words, the banks changed the rules on us because they saw owning the properties as a liability so restricted all normal credit lines to us. This has put us in a more dificult position as my job (Floorlayer) has been hit by the credit crunch quite hard. ( service industry, non essentials in hard times)

The result is that we are in a vulnerable position until work gets a bit better again ( The houses are more than paying for themselves ) but the restrictions the banks have placed simply because we own properties mean that we are in a temporary financial hole.

A- Can anyone suggest a current account for low credit ratings

B- Credit cards for the same


I have never owned a credit card and frankly am really unhappy that the banks attitude to our position, is in fact the reason we are in such a bad situation. They have created their own self-fulfilling-prophecy.

Cheers

Kev.

Sorry to say this but you are one bad tenant from a house of cards collapsing around you.
What would happen if one buy to let is left without a tenant?

Answer is that you would start to default and the whole lot would come tumbling down - this is why you are considered high risk for any additional borrowing.
How much did you pay for the properties - realistically what are they worth now?

You could be in trouble here if all the properties are mortgaged to the hilt.

spoony1967

jonesMUFCforever

"Sorry to say this but you are one bad tenant from a house of cards collapsing around you.
What would happen if one buy to let is left without a tenant?"

Not a lot, we can afford 4 tenants to be void at one time. Are you sure you were sorry to say it? It seems to me you couldn't wait.

"Answer is that you would start to default and the whole lot would come tumbling down - this is why you are considered high risk for any additional borrowing".

Oh you have answered this one for me without knowing any facts. Actually we are considered high risk because we are holding depreciating assets. The cash flow and yield are not used to evaluate the risk as this would have to be done on each individual portfolio of houses. This is not how the Banks do it, they look at the buy-to-let market as a whole. If they looked on each Landlord individually, we would still be considered low risk, as the portfolio is a good self supporting one with good cash flow and high yields.

"How much did you pay for the properties - realistically what are they worth now?"

None of your business you nosy Manc. Why does it matter? The only 2 figures that denote the stability of the portfolio are Mortgage payments vs rent. If the rent covers the Mortgage by a good way, the portfolio is self- sufficient.


"You could be in trouble here if all the properties are mortgaged to the hilt."

Thanks for your concern, you obviously know nothing about property investment so how about answering the questions I asked for help on, rather than posting this rubbish. I clearly said that the properties were paying for themselves, but my job was the problem at the moment. Hopefully you can prove knowledgeable on this subject?

Or perhaps not?

spoony1967

Thanks Mozette and Parki

I am currently awaiting the result of a Halifax credit card (mainstream) but have come here to get some info in case they turn me down like my own bank (Lloyds) has done.
They wont give me a loan either,so I shall move current accounts when I can, I don't see why I should stick with a company who wont stick with me?

Anyway I just wanted some up to date info on loans, credit cards and current accounts for poor-fair credit rating so I don't keep getting pointless searches on my not-that-great credit file.Thanks in advance for any help from anyone else and thanks so far Mozette and Parki.

Any other Muppet wanting to make themselves look foolish with their lack of property savvy, please don't!
My properties are fine, Its just the fact that I own them at all, that has shot my credit rating.
This is an important time for me and my family so please no more time wasters like
jonesMUFCforever and PNPSUKNET

Thanks

Kev