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

Mike_St_Helens

Im back.... Booooo....

Ill be here tomorrow to ask and answer lots of lovely questions !!

Hope we are all well...

In fact, we will have a mid week drinkies....

MIke

go4it

Hi Mike,

Just stumbled across this, great service! Much appreciated!

I have got an issue with credit searches. Back in June this year, when I was still a student, I was looking for a loan for a car as I had a job come September but needed a car for it. I got caught in a rejection spiral and ended up applying everywhere, not realising that they were probably rejecting me because of the number of searches. How long do the searches stay on for? Someone at CAG told me a year, but I've read one of your earlier posts that says 6 months? My financial situation is getting better and I'm looking at buying my first house, but my credit score is poor because of the number of searches (it must be that because I am on electoral roll, paid everything on time).

Any thoughts? Thank you!

Rusco

Hi Mike,

I was looking at getting a loan for a new car, however I have a £5200 settled default from 2003 on my credit file. I have been looking at loans and ended up applying for one online, which got offered but it was a secured loan and at around 18% (15k loan pay back 35K!!)

I bank at the Abbey who have turned me down for loans etc in the past, I recently had to go else where to get a mortgage.

My question is becuase of my credit rating should I forget about getting any decent loan and revert to dreaming about having a nice car..

Let me know if you need to know more details.

Many thanks

Mike_St_Helens

go4it wrote:

Hi Mike,

Just stumbled across this, great service! Much appreciated!

I have got an issue with credit searches. Back in June this year, when I was still a student, I was looking for a loan for a car as I had a job come September but needed a car for it. I got caught in a rejection spiral and ended up applying everywhere, not realising that they were probably rejecting me because of the number of searches. How long do the searches stay on for? Someone at CAG told me a year, but I've read one of your earlier posts that says 6 months? My financial situation is getting better and I'm looking at buying my first house, but my credit score is poor because of the number of searches (it must be that because I am on electoral roll, paid everything on time).

Any thoughts? Thank you!

Hiya...

1st of all... Im sorry its took me so long to reply to anyones issues,... If there is ANYTHING that has not been answered... Bump me up and let me know and ill try my best ! (oooer r!)

Ok... Issue in hand... Your searches stay on file for 12 months exactly and not a day more. Most lenders who actually look at a file will take the last 6 months into account, however that varies. How many searches would you say you had...

Id say 12/20 a year is reasonable
2-3 per month is Ok too... Any more and you may appear credit greedy... Even though your simply looking for the best deal.

Mike

Mike_St_Helens

Rusco wrote:

Hi Mike,

I was looking at getting a loan for a new car, however I have a £5200 settled default from 2003 on my credit file. I have been looking at loans and ended up applying for one online, which got offered but it was a secured loan and at around 18% (15k loan pay back 35K!!)

I bank at the Abbey who have turned me down for loans etc in the past, I recently had to go else where to get a mortgage.

My question is becuase of my credit rating should I forget about getting any decent loan and revert to dreaming about having a nice car..

Let me know if you need to know more details.

Many thanks

Hiya...

Well you answered your own question a little.

The default will have a massive difference on what you can or cant get. A lot of car finance dealers may be able to find you credit, but as you know... youll pay for it !

Please dont secure a car on your house though.....

Mike

go4it

Thanks Mike!

I have a lot of searches from June this year when I was looking at financing a car. The situation was I was a student and that I had a job come Sept and wasn't first wage until end Sept, but needed a car to start the job. I think these searches are having a negative effect as on my Experian credit report (where all the searches seem to have gone through) I have a poor credit rating, whilst Equifax and MyCallCredit both give me a good rating (but there are only 1 or 2 searches done through each of these).

Is there anyway of writing nicely to the companies and getting the searches removed?

[Deleted User]

Hi Mike,

Im hoping you can give me some advice. I recently got a copy of my credit file & was shocked to see I have recieved a default from 02. For 12 mnts I tried to set up a direct debit which was never collected. They never informed me of a default & gave me no chance to settle. Are mobile companies allowed to do this without informing you? Im looking to move early next year & am worried its going to affect my chances of a mortgage. Everything else on my credit file is good, & i currently have my mortgage with nationwide. Any advice would be appreciated.

Many Thanks

Scott.

dings

Hi Mike

Not sure if you can help with this one - Snaggles provided an answer (for which I was grateful), but I just wanted a bit more reassurance...

I have got an "agreement in principle" with Natwest after applying over the phone, and they have sent me the forms to complete the process. When I send them back I need to include my most recent credit card statement and most recent loan statement, both of which I now have.

Reassurance is my problem I guess - just tying to find out what, if anything, can cause them to change their mind when I send all this stuff back. I guess they need them to establish that I was telling the truth re-amount owed elsewhere (it's a consolidation loan that will save me money each month, and I was/am being truthful).

I guess like most people, I'm just nervous of them saying no in the end...

Any help/reassurance would be most welcome...

Dings

dollytinsle

Mike_St_Helens wrote:

Aww Thanks.. No its not so much a new rule, there have been a few highlighted cases recently where people have borrowed say £20k in the 80's early 90's, fell in to arrears and now they still owe £100k +

You should ask them for a settlement fig though. There is the 'rule of 78' that is applied to settlement figs, where by law there has to be an interest rebate, but i dont know if thats on secured credit... I think its 2/3 months interest on the balance.. but that can be a few bob !

Hi Mike hope you had a nice time. I got settlement figures and 1 is £57,000 and the other is £10079. I had borrowed £55000 secured at £650 a month repaid 37months (£24050) and £10000 unsecured at £200 for 37 months (7400). They have stated this is the rule of 82 - any advice
- is it worth my while going to citizens Advice. Thanks

scootw1

Don'y know if you will know the answer to this but here goes:

I'm six months into an IVA and have a couple of questions. My arrangement lists council tax as a £52 payment per months. This is over 10 months so it leaves me two months spare at the end of the year. Are the creditors going to want this payment or does the arrangement usually cover that? Likewise with water.

At the end of the year, is the IP entitled to see your bank statements and are you obliged to account for everything you spend? I had a Health insurance payment listed on my arrangement which I have since cancelled so will they still want the money for this or can I say that I saved that money myself? Also, the bill payment for gas is slightly lower than stated at the start so will they want this?

If i have a payrise during the year (mine was £28 a month) is it right for the creditors to take half of this as it is supposed to be a cost of living increase so in effect I am only having half the cost of living (so I can only live half as well).

Look forward to your comments
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