Vanquis card invitation/DRO/Old Debt.. Advice please..

V_Debt

As far as I know, Ive got a bad credit rating as I cant get mobile phone contracts (last time I tried which was a while ago) I owe maybe 6 grand on CCs that I havent paid or tried to pay really and an outstanding £450 overdraft with a frozen account.

I got accepted for a Flex account and cash builder account with nationwide but they didnt offer me a switch/solo/maestro or anything with the Flex account.

I havent heard anything about my debts in a good while (probably years) so not sure whats going on as I heard something about them being written off after 6 years?

I had considered getting a DRO (think thats what theyre called) I cant remember much about them but think its similar to bankruptcy but without the need to go all out bankrupt?

I was planning on going to the CIB soon as Im sick of having bad credit, I wanted to get finance on a new car but havent heard anything back from the guy that was going to apply for me. That got me thinking that I need to sort out my credit rating.

My receipt of this Vanquis card invitation thing has made me wonder whether its worth getting it and paying what I spend on it in full every month ie paying for my petrol with it and paying it straight off and trying to build my credit rating that way..

Im just unsure what will/has happened to my outstanding CC bills?

Anyway I can find this out?

Opinions on what I should do?

Thanks in advance

Danny

V_Debt

bump

20 views and no replies?

any chance someone could help me out at all?

RAS

Hi

If these debts are old enough, you do not need to do a DRO as they are statute barred.

If you do a DRO worrying about building your credit rating is a bit irrelevant as no-one will lend you money for a considerable time.

DarkConvict

If you have bad credit file already, and have already failed to manage £6,000 of credit cards, do not consider getting a car on credit. Firstly getting it on credit is damn expensive, add the fact of poor credit file means they will bump up the interest rate it will probably be a big purchase that will be the end of you. Whilst on credit the car is secured, if you fail to make payments they will cease the car at a fraction onw hat you paid for it and you will have a huge lump sum to pay out still.

DRO is like BR, but has very limited circumstances, sucha s debts under £15,000 and no assets + (more conditions).

The 6 year rule is called statute barred, or limitations act 1980 if you really care If you have not paid or given written acknowledgement of the debt in 6 years (5 in scotland) the debt is not enforceable in court. So in England/Wales it is voluntary to pay, in scotland the debt is actually written off 'extinguished'.
If they took out a CCJ against you then a debt does not go statute barred.

Vanquis and Aqua are often the rise and fall of many people. These are credit score building cards, why? They are available to people with poor credit ratings as a means to show they can handle credit, don't get into trouble and given a few years it shows you are a good credit person. The cards have high rates of interest and high charges, to encourage you to make full payment. Do not even consider credit cards unless you can make full payment especially with these, i've seen a friend go suicidal over the interest and downward sprial they caused themselves by not making full payment on there vanquis card, ~40% APR on a ~£2500 debt is fightening, although payday loans are much much worse with APRs topping 1000%.

As to what happened to your previous CC's, well its your responsibility to pay them. Did you move address and forget to tell them, or did they just stop. Either way you should have carried on paying as failure to make your month payments will cause you to default, add more charges and likely be sold to debt collectors after some time.

What should you do, depends on what you want to achieve.
Getting a copy of your 3 credit files is a good idea, but this will update to your current address and may light you up if your previous debts have been sold to debt collectors.