Ex- Credit Analyst - Throw your Credit & Underwriting Q's at me.

*zippy*

Well done mike for being included in the weekly email :T

RoyH_2

Not exactly in debt but...

Being a pensioner on less than £10K per (living on private income), where can I get a credit card?

moneywaster_2

hiya thanks for your response. i was knocked bact for a credit card so checked experian and they said i had a poor rating!! im just about to clear my two credit cards and close them will this improve my rating? im worried about it when it comes to get a mortgage!!! please help me

moneywaster_2

hi thank you i was rejected for a credit card and when i checke experian they said i had a poor rating!! i am just about to clear and close my two credit card accounts!!! im worried this will prevent me etting a mortgage in future please help me

Mike_St_Helens

Hey look at that !! We are in the weekly email.. I didnt see that !!

Cewl !!

terriblesaver

My mum has just applied on line for a Virgin card to transfer her Barclaycard balance to - she has never had a missed or late payment in her life so any ideas why she has been turned down????

leannie_2

Hi,
I was really daft at uni and when I graduated didn't get my money stuff together properly I had problems with late payments on a store card (GE capital Bank) but no defaults or anything and the account was settled.
I had a HSBC managed loan (to combine my student overdraft and credit card, after I was unemployed for a few months after graduating) which has now been settled for 6 months after running for 6 years.
I have no other loans but two credit cards, one (Co-Op)which I asked for the credit facility to be removed to take away temptation, the other (MBNA formally Halifax but they sold the account in the summer) is current. Both I pay double the minimum payment on each month.
Last year I had a problem with a catalogue (Studio Cards), I made an order which there was problems with, I finally sent a cheque to pay the balance of £36, the cheque was not cashed but my family life was difficult (death of my Gran) so I totally forgot about it. I then recieved a letter from a debt collection agency to say I had defaulted and I had to pay them the debt, I called them and paid the £36 straight away. But the default is obviously recorded on my credit report.
I am looking into applying for a mortgage and was worried about my rating so have gone to Experian, I am rated 566 and 'poor'.
I noticed some issues with the report (HSBC marked me down as late every month for my loan payment, but they took it straight from my bank by direct debit, a number of multiple credit checks by 'Orange' on the day I took out my phone contract in June, also many linked addressed going back 8 years, and linked address postings with the same address being linked, plus Orange getting my previous address wrong. I have raised queries with Experian for these).
I have maintained all my payments for 12 months (and prior to this, but obviously the default is there), no problems with any of them. I have upgraded my Halifax current account to one with a cheque guarantee card and cheque book, and not used the overdraft facility offered to me on my account. As far as a mortgage goes I have maintained rent payments of over £500 each month, without fail.
What more can I do to increase my rating?
I have a meeting with a mortgage broker from Bradford and Bingley on Saturday, I don't want to look foolish...do you think I stand a chance? If not I will cancel the appointment.

2Princess_Mum

Hi Mike

I'm a latecomer to this thread, but this is excellent, exactly what I've been looking for in terms of advice. I'm hoping you can help me on this one. If you have asnswered a similar question in this thread please accept my apologies and I'd appreciate if you could direct me to the answer (I'm doing this as quick as poss as I'm on the school run today).

I've taken time out of my working life to have a family (currently expecting 3rd child due Dec). I had been saving for a bigger car as I will need one soon after the baby arrives. At Xmas '05 I had four credit cards, Limits £2000, £1100, £1000 and £350 (the £1000 limit was a balance transfer I took with Lloyds TSB (0% for 9 months), which I used to pay off the £1100 card and closed the account. When I cleared the LTSB I cancelled that too. The Barclaycard I have held for 9 years since I was at college, and had never asked for or been offered a credit limit increase, so when I asked for an increase earlier this year to transfer the balance of my £2000 CC (I owed on that card about £1800 but asked to transfer £1700) I was told it was not possible.

I made a payment recently with my Barclaycard and cleared what was owed before the payment due date. When I called to confirm they had received the payment, which they did, I again asked for a credit limit increase, but as opposed to them doing a credit check, I asked them to see if I was likely to get one, on the basis of the current limit and the fact that I am not working. I was told they could only BT £315, which is of no use to me, so I cancelled the card.

My dilemma is that I want to get a card with a better rate, but because of my employment status I appreciate that my options are limited at best. I am currently paying around £35-45pm in interest on my remaining card. I was making standing order payments of £50pw, but recently changed banks so I now pay at the counter, and pay around £80pm. I'm uncertain of my chances if I ask for a CC with my new bank, as they only have about 2 months of their own records on me in order to make a more favourable decision to support a credit check, but the fact that I do not work will obviously impact on their decision as to my "ability to repay the debt".

I am not keen on using one of the other cards readily available for the unemployed, as we at the other end of the spectrum always get the worst deal, and end up paying more in the longrun.

If you can direct me to where to turn at this point I would be most appreciative.

Thank you in advance
2PM

Frugal_Fox

Hi Mike,

Just a quick question - or two! Firstly, we are managing to meet our commitments until July - when some cheques I wrote were bounced - I miscalculated DH payday (changes every month). The charges from those cheques caused a severe knock on effect and in the 5 weeks after the cheques bounced Halifax hit us with £1400 bank charges ( I kid you not - we rang to come to an arrangement with them - but they will not help at all, so in effect we have had no income for September) As a result we are now behind on ALL of our commitments, and have just put our house on the market. Would I be right in thinking that instead of clearing the debt instantly with the equity it would be better to clear it month by month - thereby rectifying some of the damage caused to our credit file? I'm thinking over a 12 month period so that the last 'credit' activity on our file shows us as being regular payers etc??

Secondly: I had an MBNA account, in August I received a letter saying there had been some changed to the terms and conditions and also why not consider using my card again - I had cut the card up, but with the above, we decided to get a new card sent out - to use it to meet the commitments for this month, clearing the balance from the equity ( appreciate I'd pay more in interest this way, but I hate being so behind). When I rang the girl said not a problem and the new card would be out in 5-7 days, and did I want one for OH - No! After 8 days, no card, rang to enquire only to be told - actually no, we've changed our mind, you're not having one, and to prevent any other 'silly' letters coming out and telling me I'm a valued customer they would close my account for me??? Will them closing my account affect my credit rating? Also - can they do this? (I'm sure they can, but just seems ridiculous that they'd send a letter saying - use your card, then you phone for one and they so 'computer says no')

A very appreciative FF
x

Mike_St_Helens

Guys, havent forgotten you. Im on long shifts till tomorrow, will reply sat for you all.

Mike