The Sub Prime Credit Thread - Part IV

Miles30

Innocent_Guy wrote: »

Hi,

TheEffect had over 50 searches and less than 1 years credit history when 1st Direct accepted him.

Let us know how you get on.

Thanks mate! I am going to apply then.
I do have accounts with barclays, halifax, alliance&leicester, and coventry but non really suits my needs.

I did request for postal application forms from FD in january but never returned the form. They've been writing to me every month since then asking me to apply. It makes me think wow they really want my service. I am quite pleased about that really.

Once again, thank you.

daviduk1976

Hi guys, hope ur all well, ive been watchin ya all for ages (very Voyaristic i know!)

Just a quickie really (and a question)

Regarding credit searches:

I have rather a large number of searches in last 6 months, my other half who i share a mortgage with has great credit, never refused, pays everything on time and generally has never had credit problems.

I have trashed my credit by applying for loans too much too soon; now got myself into some debt (10k) which i will pay by feb 2011 at latest, providing i dont apply for anything in that time and pay everything off, will my credit sort itself out in the mean time? i dont intend to apply for anything, i will be closing accounts down hopefully with a greenies on my file.

Oh yea, recently he applied for a loan with sainsburys ( i pooped myself thinking he would be rejected because of our ties) he got an 8k loan with apr of 9.7%, so i couldnt have trashed his file that much......

so the question lol, will our credit files be ok providing i pay off everything and not apply for stuff......out mortgage is up in 3 years....so have to have nice credit.

Thanks guys

David

Toe-Jam

Miles30 wrote: »

Thanks mate! I am going to apply then.
I do have accounts with barclays, halifax, alliance&leicester, and coventry but non really suits my needs.

I did request for postal application forms from FD in january but never returned the form. They've been writing to me every month since then asking me to apply. It makes me think wow they really want my service. I am quite pleased about that really.

Once again, thank you.

I would be interested to know what First Direct have that "better suits your needs" that , Barclays, Halifax, A&L and Coventry dont have. Must be something extremly important:D.

And with regards to them writing to you every month trying to get you to apply, its an automated thing, your classified as an imcomplete sale until you get an account or a decline.

misscutiepie1984

Im now am DMP free however not quite debt free

ElkyElky

Zack1 wrote: »

I'm pretty sure she couldn't know this for sure... surely it's down to underwriting....

Natwest are just pretty easy to get I think... hence most of my uni being on Natwest student accounts! My friend was asking me about credit cards and overdrafts (she saw the stack of letters/statements etc I have scattered about on my desk) and (she's short of money, can't go to parents or family, will get paid by the time a statement comes through etc - I want to do finance and have read some horror stories on here, I would never push anyone towards credit cards without telling them to repay in full!!) I said go for Natwest (she's an existing customer) and apply for student account then apply for the credit card, but she wont get railcard etc at this time of year.... she did it and got accepted for both, only £350 limit like me though

She actually decided to use the overdraft in the end, because she wasn't 100% certain she'd be able to pay the credit card back by the statement date, so I said just use the overdraft and make sure you pay it off as soon as you get the money back, then remove it from your account if you don't want to be tempted again

It wouldn't necessarily be down to underwriting if the decision was automatic.

There could be some truth in what she says.. I had a number of searches on my file before applying for my loan, and that was automatically approved.

:j

kilasuit

misscutiepie1984 wrote: »

Im now am DMP free however not quite debt free

Thats good to hear

Miles30

Toe-Jam wrote: »

I would be interested to know what First Direct have that "better suits your needs" that , Barclays, Halifax, A&L and Coventry dont have. Must be something extremly important.

And with regards to them writing to you every month trying to get you to apply, its an automated thing, your classified as an imcomplete sale until you get an account or a decline.

As you are aware all people may not want the same thing from their current account. For me, 2 things are important - Ability to use faster payments to pay at least 5k. Another thing is 24hr telephone service. I also like Uk based call centres.

If you read my earlier post, you'll have seen that I said I loved Coventry but my only problem was lack of faster payments.

My reasons may not seem as EXTREMELY IMPORTANT to you but they are to me because we are different people.

I wont go on about A/L as many people on this forum will tell you how they hate it.

I am aware the letters are auto generated but that makes no difference to me. They will not write to me continously for 4 months if they didnt want my business.

never-in-doubt

ElkyElky wrote: »

I was in NatWest today speaking to the supervisor who was closing one of my accounts. She started telling me about the student account and the benefits and I told her I wouldn't be accepted because I had too many searches at present. She said NatWest disregard any searches made after 3-4 months. I asked her if she was sure about this because I have roughly about 15 within the year and she said yes, they only look at the recent searches made.

Mate this is categorically incorrect - she does not know what she is on about! ALL accounts are ran through Central AVU in Edinburgh - especially those with excess searches, I know more than most how RBS systems work - after the carry on i've had with them :rotfl: :rotfl:

Basically, she is trying to say that if you have 3 searches in the last 3 months, anything after will be ignored - well, no. The truth is they may only look back a few months to see what you've been applying for, but the amount and frequency of searches WOULD then be pulled by the automated scoring system as and when you apply, and would immediately be sent to AVU as a possible fail on score (i.e. too many searches).

Most lenders build into their scoring model, the standard CRA response which is anything less than 12 searches per annum should be ignored, or at least not "scored down"......

The day we start to trust anyone from that bank is the day i'll become prime minister! :rotfl:

pjread

is that fairly accurate for most lenders then, <12 searches in a year and you're 'safe' from any negative impact from search volumes?

CannyJock

pjread wrote: »

is that fairly accurate for most lenders then, <12 searches in a year and you're 'safe' from any negative impact from search volumes?

Nope. 12 in a single month will annihilate your score.