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

flowerofscotland

Hi Mike

I think what you are doing is great - thank you.

I have recently had my "lightbulb moment" and am now working towards becoming debt free and with some savings before I retire at the end of 2015.

My query is: do CC companies review accounts and/or credit limits when people retire (they know our dates of birth).

Because I am using my savings to pay off my debts I want the reassurance that I will still have credit available for emergencies once my emergency funds have been used up.

Although I have a lot of debt I have always been able to service the debts and although I have been turned down for a new card recently I think it was because of the amount of credit I have available rather than anything else.

Thanks for your time.

Mike_St_Helens

flowerofscotland wrote:

Hi Mike

I think what you are doing is great - thank you.

I have recently had my "lightbulb moment" and am now working towards becoming debt free and with some savings before I retire at the end of 2015.

My query is: do CC companies review accounts and/or credit limits when people retire (they know our dates of birth).

Because I am using my savings to pay off my debts I want the reassurance that I will still have credit available for emergencies once my emergency funds have been used up.

Although I have a lot of debt I have always been able to service the debts and although I have been turned down for a new card recently I think it was because of the amount of credit I have available rather than anything else.

Thanks for your time.

Hi there...

Banks do not review your credit simply on retirement, it is against the law to treat you any different than people of below retirement age, and it isnt ethical... Mind you, which bank is ethical !!

The only time you may see a 'review' of your limits is if you apply for further credit / new accounts with the same bank and they discover your new income if it is any different, if it is drastically lower then they may reduce limits in accordance with your income and assign what they deem an appropriate limit.

Your decline as above, could possibly be due to oweing on cards, this doesnt really make a difference, however if it is kind of 75% or more of your annual income, then id say your right and they declined because of this.

If there is anything else I can help with dont hesitate to ask.

Mike

saubryn

Thanks for starting this thread

I have a quick question.

I'm unemployed, my debts are in my sig. I have payment arrangements with the 'priority debts' - the others I tried offering token payments to but they only want crazy money like 40 quid a month.

If I scrimp and save I could probably do bulk payments to entirely clear all of the ones that are less than 1000 pounds. Is it better to do that - i.e get rid of a bunch of small defaults and just have the 'big ones' to clear later? Is 3 large defaults better than 3 large + 4 small? Or would I be better off having a payment arrangement to pay 2 quid a month to everything, and not clear off even those small ones until a couple of years time?

Any advice appreciated.

Mike_St_Helens

saubryn wrote:

Thanks for starting this thread

I have a quick question.

I'm unemployed, my debts are in my sig. I have payment arrangements with the 'priority debts' - the others I tried offering token payments to but they only want crazy money like 40 quid a month.

If I scrimp and save I could probably do bulk payments to entirely clear all of the ones that are less than 1000 pounds. Is it better to do that - i.e get rid of a bunch of small defaults and just have the 'big ones' to clear later? Is 3 large defaults better than 3 large + 4 small? Or would I be better off having a payment arrangement to pay 2 quid a month to everything, and not clear off even those small ones until a couple of years time?

Any advice appreciated.

Ill be honest, any default on your file aint too good. Some lenders look at the amount of defaults, so I guess it would clear up a few small bits if you were to clear those, but if you are on a DMP or anything, then lenders wouldnt appriciate you favouring one creditor over another regardless of the amount.

All the defaults are on your file for at least 6 years, they are there to stay so its your choice what you pay really.

Are you in a DMP with payplan or someone, if not you should give em a call, they are really helpful indeded, contact all creditors on your behalf etc etc...

Hope that helps, If I can expand or advise anymore... pop it my way !

Mike

saubryn

Thanks for the advice.

I'm not on a DMP - I called the CCCS and they said they couldn't help me because I don't have enough to put towards my debts at the moment. I tried the CAB, they helped me with the priority stuff, but they're understaffed so couldn't take on my case full time.

Now I'm trying to sort out arrangements myself, but not really getting anywhere. I figured the best thing to do was stop the small stuff from getting any bigger with charges by paying them off when I could, and keep on plugging away at the big ones?

Mike_St_Helens

saubryn wrote:

Thanks for the advice.

I'm not on a DMP - I called the CCCS and they said they couldn't help me because I don't have enough to put towards my debts at the moment. I tried the CAB, they helped me with the priority stuff, but they're understaffed so couldn't take on my case full time.

Now I'm trying to sort out arrangements myself, but not really getting anywhere. I figured the best thing to do was stop the small stuff from getting any bigger with charges by paying them off when I could, and keep on plugging away at the big ones?

Thats a good idea, but if you are already at default stage, most fees should have stopped. Try Payplan also, they may have different criteria and are also very good too.

You've some pluggin to do... a bit like myself, Im going down the Bankruptcy route... Theres no other way out for us.

Mike

carlih1

Hi Mike,

Just wondered if you could help me.

I have a few defaults and a ccj on my credit file. I am not disputing these but i have heard of a correction on your file to explain, would this actually make any difference as my tax credits were stopped leaving me with £80.00 a week for 6 months hence the reason i couldn't pay anything. The tax credits situation is now resolved but i have been left with a horrible credit file

Carli x

Cantdance_2

What a good idea - may as well join in!!

You will see in my sig below a list of all the credit cards my wife and I currently hold and are slowly paying off.

Back in February this year I applied for a couple of other credit cards in the hope of reducing my rates and paying 0% for a while - got turned down for them all.

I have no black marks on my credit file as I have never missed a payment on anything so I can only imagine that the refusals were due to the sheer amount of credit we hold between us.

My question is this - do you know of any lenders who would be more likely than others to accept my application, since all we want to do is simply shift the balance to them? Do any companies look at the inidivdual circumstances so they would see we're just moving things around and not looking to borrow any more?

As it's now been 6 months since the last lot of searches and refusals I'd like to make the first one I apply for be the one that gets accepted!

Also - do you know whether, if you get accepted and they offer you a small credit limit, any lenders will negotiate with you to raise the limit so you can transfer the whole of a bigger balance to them?

Cheers

James

Mike_St_Helens

carlih1 wrote:

Hi Mike,

Just wondered if you could help me.

I have a few defaults and a ccj on my credit file. I am not disputing these but i have heard of a correction on your file to explain, would this actually make any difference as my tax credits were stopped leaving me with £80.00 a week for 6 months hence the reason i couldn't pay anything. The tax credits situation is now resolved but i have been left with a horrible credit file

Carli x

Hiya Carli,

Ok, they are on your file. You can insert what is called a 'Notice of Correction' (NOC) on your credit file. When ANY lender looks at your file they are instantly alerted to the text you have added. You can only put factual and honest text in this NOC, you cant blame anyone or thing in it but it could certainly explain your CCJ etc.

Hope that helps !

Mike_St_Helens

Cantdance wrote:

What a good idea - may as well join in!!

You will see in my sig below a list of all the credit cards my wife and I currently hold and are slowly paying off.

Back in February this year I applied for a couple of other credit cards in the hope of reducing my rates and paying 0% for a while - got turned down for them all.

I have no black marks on my credit file as I have never missed a payment on anything so I can only imagine that the refusals were due to the sheer amount of credit we hold between us.

My question is this - do you know of any lenders who would be more likely than others to accept my application, since all we want to do is simply shift the balance to them? Do any companies look at the inidivdual circumstances so they would see we're just moving things around and not looking to borrow any more?

As it's now been 6 months since the last lot of searches and refusals I'd like to make the first one I apply for be the one that gets accepted!

Also - do you know whether, if you get accepted and they offer you a small credit limit, any lenders will negotiate with you to raise the limit so you can transfer the whole of a bigger balance to them?

Cheers

James

Hi James,

You need a lender that is 'judgemental' rather than simply makes a decision on scores alone. MBNA are Judgemental lenders, so that means they look at each and every application and its approved on its merits. Your level of credit may have been an issue, also the number of searches, id have said 10-15 is a max per year really.

Again with limits, some simply give you a limit depending on score, others give you a limit that either you request, or some match or beat your highest limit. ... try MBNA possibly, Im not advertising them, but they are the lender i have lets say 'experience' with...

MIke