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

Mike_St_Helens

go4it wrote:

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?

Hiya Go4it...

Im sorry, I doubt these companies would remove any searches , unless they were duplicete and from the same firm...

Searches alone are not that bad.. Most of the time people will hear that they have been declined because of too many searches... But generally there was always another underlying reason. True it can effect scores.. But if you choose your lender wisley.. It can be overcome.

Mike

Mike_St_Helens

funk_punk wrote:

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.

Hiya Scott... Hop you are well...

I hear this quite a lot.. have you ever spoken with O2 and had it out with them, there must have been bills or letters produced to prove this default. Its unlikley that they have simply 'just decided' to give you a default, there must have been something around the issue. DD issues a couple of times, yes, but after 12 months.. I would have gone into the store and had it out with them.. And is there any reason you couldnt pay over the phone or by post etc etc... They have a lot to answer for Mobile firms, but O21 are somewhat OK as they are UK based and there call centers are so they gen know what you are talking about.

On your Mortgage point.. It depends on the lender... If you are going for the lowest of the low interest rate etc then you will have to be squeeky clean so its a no.. But normal high street and internet lenders wouldnt worry too much about a mobile default... Just look at how much money they are gonna make from you, and their loan is secured.

Hope that helps... Sorry if the pay bill thing seems harsh, just my wording I guess... isnt meant to be.

Mike

Mike_St_Helens

dings wrote:

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

Hiya Dings.. Iv every confidence in Snaggles with this one.

It sounds like its in the bag, escpecially with NatWest... They generally do all checks pre approval. Its just procedure. However I have declined in principle decisions when the 'documents' are in. If I have not agreed with a junior analyst point of approval, I have declined... But they are very few and far between and usually is when I have found adverse info retc etc... not simply waiting confirmation of consolidation balances.

MIke

Mike_St_Helens

dollytinsle wrote:

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

Hiya... This is gonna be long.... But WILL help in explaining I hope. xx

I have NEVER heard of Rule of 82 - They may be confused ( I have had years of experience mind... But can always be proven wrong .. Sometimes)

OK.. Rule of 78

When you borrow a sum of money from a bank or other lender, you usually arrange to repay the loan with a fixed interest rate by a specific date in a set number of equal installments. The rule of 78 is one way in which lenders calculate how much interest you should have paid at any stage during the repayment period of a fixed rate installment loan.

Where does “78” come from? The number derives from the 12 monthly parts of a one-year period. The sum of those parts (12+11+10+9+8+7+6+5+4+3+2+1) is 78. Thus, for a loan with a one-year duration, the lender expects you to pay 12/78ths of the interest in month one, 11/78ths in month two and so on down to 1/78th in month twelve.

The rule of 78 takes into consideration the fact that you pay more interest in the beginning of a loan when you have the use of more of the money and you pay less interest as the debt is reduced. Because each repayment installment is the same size, the part going to pay off the amount borrowed increases over time and the part representing interest decreases.

Should you decide to repay a loan early, the lending institution will use the rule of 78 to determine how much interest you do not have to pay. However, you may be unpleasantly surprised by how much of the capital sum of your loan remains outstanding.

The key point is that the interest you are charged on the sum you have borrowed is NOT spread evenly over the number of payments you have agree to make. Thus in the early period of your loan's life span you have been paying more interest and less capital, reducing the outstanding amount more slowly than you may have assumed.

Mike_St_Helens

scootw1 wrote:

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
scootw1 is online now Edit/Delete Message

Hiya Scootw1

When I applied for mine, They said they could ask for bank statements at any time, you dont have to send them, but I guess they could become a bit akward with you if you dont.

The pay rise, they may want a portion of it.. but with utilities etc etc going up this year, i think they will leave you alone if you say your costs have risen.

When I told them about council tax they were insistant that they spilt it over 12 months not the usual 10... So it should be yours, too much admin just for 2 months.

The health insurance.. What they dont know for now wont hurt ! Leave it till they ask you have you still got this expense and that expense.....

Hope that helps a bit...

Have you ever seen this site, Very good...

http://www.debtquestions.co.uk/debt_forum/

anniecave

Hi

I have a credit card question. I applied for a credit card approx a year ago and they declined me, I think they said my score was just a few points off what they usually accept. They mentioned though that I had recently switched my current account.

Does switching current account have an adverse affect on your rating or on whether credit card companies are likely to accept you or not?

scootw1

heres another question for you. While in an IVA, am I allowed a cheque book and/or Switch card? i've asked Nationwide a couple of times and they turned me down as my credit score wasnt high enough. It's not like I would have credit, it just makes it easier to pay for things with a card. i would still have to have the money there.

Kaváfy_2

Hello!

Many thanks for this informative thread! I'm writing because I've now been refused two credit card applications in a row, something which has not happened before. I'm using the 0% shuffle method to borrow about 5500 pounds and I've got the debt divided between two cards. A while ago I applied for the GE 3% cashback card (to use for purchases of course) and was rejected, and now I've just applied for another 0% card (Stroud and Swindon I think) and have been rejected for that too. I've checked my credit report and I just can't see anything that might be causing this! Any ideas, anyone?

K.

jillie1974

Hi Mike
do you know if CCCS will let you take a month off not paying, husband has been off sick from work and wont get paid as not there long enough to qualify for sick pay?

sandralovescats

scootw1 wrote:

heres another question for you. While in an IVA, am I allowed a cheque book and/or Switch card? i've asked Nationwide a couple of times and they turned me down as my credit score wasnt high enough. It's not like I would have credit, it just makes it easier to pay for things with a card. i would still have to have the money there.

No you are not! No credit cards, no cheque books, no switch.

Try the Co-op Cashminder account which does give you a visa electron card.

If you want something that works like a credit card but isn't - try the Cashplus Card. https://www.mycashplus.co.uk

It is a prepay card, used like a Mastercard, the difference being that the money is loaded onto the card, then used as you would a credit card.


I have had one for just over a month now and it is fantastic!

I was going to do an IVA but was unable to because I could not pay enough money into the IVA.