ccj and loans?

towncryer

I have requested similar info about c cards, maye loans will bew clearer.

ok, q is this. does anyone know companies who offer unsecured loans to people with a ccj.
I have a ccj from 2004 for 4200, which will obviously? stay on there until 2010.
If i wanted to borrow money before then, who would lend it basically.

i have learnt a lot from getting into debt, and from money saving expert. It is easy to know what to do, when cant afford payments, or if you have too much debt to contact cccs or go bankrupt. Or if you have good credit look for bestdeal/swop cards/mortgages etc.
What about us in limbo. I have very little recent debt, 4200 is a lot less than many owe. I could get a lot straight with a loan, as for 20 montnhs, i have a high interest redemption on first mortgage. Will save 200-500 a month in less than two years. Until then things are very tight.

Who can i approach to make things a little less difficult, until then. Obviously CCJ is meant to be a deterrent to lenders, but as i said, i owe a fraction of what most people do on here. any ideas please, would be grewatly appreciated.

TC

mparter

It's not what you owe but what you can afford. Whilst a lot of people on here may "owe" more than you, they may also have a bigger income than yours.

There are still "lenders" out there that will lend to you with a CCJ although you'll be charged a fortune in interest. And the more you want, the harder to obtain and more expensive it will be.

enjoyincubus

An unsatisfied CCJ of such a value and receny is going to definately have an impact upon your chances of getting a loan with most banks. There will be lenders out there who will lend to people with CCJ's, however they usually come with higher than average CCJ's.

If you think about the different levels of arrears a CCJ is only second to a bankruptcy/IVA, therefore banks treat these pretty seriously. Also underwriters will treat any applicants seriously with previous CCJ's as they are a good indicator of future performance. The problem with a loan is they are a lot more riskier and harder to manage than credit cards. So it is possible for you to get accepted for a credit card, as they can offer you a small limit and then increase that slowly as you show good payment history. If you walk away with a £7k loan and the banks past history has shown people with a CCJ have a 25% (made up number) chance of not paying back, then that is considered too much of a risk. Especially when you consider you have the money and there is not much else they can do!

Experian have a definition for the "worst" type of credit history which they class as:

Bankrupt (or)
CCJ > £100 in the last 3 years (or)
CCJ > £5000 ever (or)
Default > £100 in the last 3 years (or)
Default > £5000 ever

Not everyone implements this definition of course, but that gives you a good idea what the banks consider to be high risk.

If you are desperate for the money *now* then you are going to have to look for lenders who lend to people with impaired credit history (I believe moneysupermarket categorise them as "needs improvement" credit history).

Looking at moneysupermarket CitiFinancial are offering loans for people with impaired credit history for 14.9% APR.

Hope that helps!

towncryer

thank you for taking time to reply so deeply enjoy. Erm, you put CCJ 5000 ever, and Default 5000 ever. But I thought records olny stayed on your file legally for 6 years?

TC

enjoyincubus

sorry TC yeah I meant 6 years. However I am not sure whether that is 6 years from date it happened or from the date of the last payment... I am sure someone out there will know the correct answer though!

kevin_M

6 years from date of default it will stay on your file