OVERDRAFT with BAD CREDIT

B123_2

I was wondering if anyone could help! I have been searching various bank accounts, but quite obviously they are not going to share this information with me.

I am going through some problems with an old Landlord at the moment (some fellow moneysavers have been very helpful with advice for this!). To cut a long story short they are demanding money, which I just don't have. We are doing everything in our power to contest it, but if I need to pay up I don't know where the funds will come from.

While I was a student I had a HSBC account with £1000 overdraft which unfortunately I maxed out. The account was always active. When I graduated in Summer 2008 I ended up temping etc due to lack of jobs, and my account became inactive. They requested that I pay the whole overdraft back, and as I couldn't afford this without savings and a stable job, I agreed to a managed loan.

I pay £40 a month on this loan, and I have never missed a payment. I have had it for more than 6 months. TBH HSBC weren't great, and I know an awful lot of graduates who are in this situation with them. Even now I am in employment I am happy to keep with this arrangement rather than change my dealings with them.

I have one other Cardcash account which I opened with Halifax when I was about 16, has no features or benefits. As my issue with HSBC was sorted long ago, and I need to access to a small overdraft should I need it, I decided to upgrade this account. It so basic they can't upgrade, and I had to apply for a new one. I have banked with them for 7 years.I was refused.

I guess this means that my credit rating is bad. I am now in a stable £20,000 a year job (they didn't ask my salary), and I can't think of any reason other than this managed loan that would be a problem. I am dubious about checking my rating online, and need to sort this out ASAP.

If I do have a bad credit rating, is there any bank accounts out there which would give me a small overdraft (around £200)? I have the problem that if my salary is spent (on the old Landlord), I will have no means to finding any other money to support myself until the next pay day. It's becoming such a problem, and as I have no savings I am really starting to worry. Basically, I have no fall-back. Any advice would very very much appreciated.

bingy_burge

Its tricky as I got into trouble with natwest o/d over a year and I can get a barclay card ect but no o/d I have tried with Lloyds and RBS an so far no.

I would apply for captial one classic card as they will probably take you with a minimum 200 limit and if you pay in full you get 56 days interest free.

With reference to your credit file if you don't see it you cant be sure the info is right and not wanting to look at is a bit of 'head in the sand' attitude.

B123_2

I may look into that actually. It is just extremely frustrating when comparing my situation to other people I know. Someone I studied with has kept HSBC at bay by paying a fiver a month into his old student overdraft. However, he has £2000+ overdrafts with another bank and then continually extend this on request. I don't have this fall-back.

I did my application to Halifax over the phone, and told them that I wanted to change the account even if I could not have the overdraft. Just as, I thought I may aswel get in with them + then approach the O/D issue later. It isn't all that great having a kiddy account complete with Visa Electron (!) as your only method of banking!

Thanks for the advice..will have a look.

DebG

Capital one classic should work, I have one too.

B123_2

O dear! I have looked into the Capital one card. Looks good. Though, I don't know anything about credit cards and the T&C means nothing to me! Never had one, never intended to. Guess I need to read up! Thanks for the help.

bingy_burge

Problem with banks is it seem very easy if you start missing payments on overdrafts or dont have regular credits to get your o/d taken away and once that happens they are very difficult indeed to get back.

The capital one should accept you and they you will have a potentially free way of borrowing money for a month or so as long as you clear the balance in full each. Then if you can't afford to pay the whole balance just use the card to pay thing up to what u can afford that is how to manage a credit card properly in my mind.

B123_2

Thanks for all the advice. Have been looking at all the info on Credit cards on this site, and forum...It's my first time and it's a scary thing!

From what I can see the Capital one Classic seems like a good option. I have seen the Barclaycard Initial Credit Card, that has a lower typical APR. The only thing is, it states that it is only suitable for people with no IVA's within the last 5 years. I have a managed loan. Is this an IVA?

Also, it states that you must have had a permanent address for the last 3 months or more. I have always lived in the UK, but have only lived in my current address for the last 2 months. As far as I know I am on the electoral roll (sent the forms back & my lovely C-Tax bill has arrived!). Will this be a problem?

Also, on the Capital One application it says YES/NO : "I am interested in taking immediate cash advance". What does this mean?

Sorry, the confusion I already have over these cards prob means I shouldn't go down this route..but needs must!:o

LukieD

I'm in a similar situation to you. Finished Uni with an overdraft (£1750) and despite now being in full-time employment am basically stuck with the same overdraft. This wasn't a problem at Uni (interest free) but now is getting painful.

I have just had a new account approved at Alliance and Leicester which has a switching service which will transfer your overdraft from an existing bank. The only reason this is beneficial is because as part of the incentive to signup they are offering a year of interest free overdraft. This is likely to save me around £400.

I'd give applying to A&L a go. I can't imagine my credit rating being very good (never had a CC and had a few issues over the years with one off late payments) but I was accepted immediately.

Good luck!

CLAPTON

seems madness not to get copies of your credit files ... they may be fine but they may be the reason you can't get credit which means you are just wasting your time

you can get statutory paper copies for £2 each (there are three credit agencies)

Fire_Fox

B123 wrote: »

Also, it states that you must have had a permanent address for the last 3 months or more. I have always lived in the UK, but have only lived in my current address for the last 2 months. As far as I know I am on the electoral roll (sent the forms back & my lovely C-Tax bill has arrived!). Will this be a problem?

Which forms have you sent back, the council tax forms or the voting registration? These are NOT one and the same. Were you registered to vote at your previous addresses? Banks/ credit cards like stability and continuity.

You must to check your credit reports to ensure everything is up to date - there might be an old mobile phone you had forgotten about, or out of date information. If you aren't listed on your credit reports as eligible to vote, you simply ring the council and ask for your number on the list and pass it on.

If you need to pay this landlord a sum of money and you have a limited income there is no reason you can't offer to pay by installments - worst case scenario the courts would look very favourably on a reasonable offer based on your essential commitments. I think a credit card would be tantamount to trying to dig your way out of a hole: could you actually afford the repayments (inc. high interest rate) on top of your existing outgoings?

Sorry to be rude but it seems to me your attitude to finances and credit is very reactionary - you need to start being more organised, perhaps begin with a Statement of Affairs and post up on the Debt-free Wannabe board for guidance and support:
http://www.makesenseofcards.com/soacalc.html
Most people find it frightening to start delving into their finances but a massive relief when they have completed the budget and received comments.

B123_2

Thanks. I will be looking into my credit reports as suggested.

My attitude to finances is very reactionary that is true. Unfortunately though, I graduated not too long ago and have no savings, and until very recently a very unstable and low-paid job. Though, I did cross that very important threshold which meant that I could not claim for C-tax deductions or any further benefits. I think that if I had been in the position to keep my student/graduate account active, and not had such terrible dealings with HSBC, I would be less fearful of my current situation.

I have always worked, even during Uni, and I spend only on the necessary. As I have just started a new job, I know in a few months my situation will improve. However until then my wage (which is apparently my only source of finance) will almost almost entirely be eaten by utility bills, rent and food costs. The LL is not letting up with bullying tactics, and so I do need some form of fall back to allow me to move on from this situation, whilst still keeping a roof over my head!