The Sub Prime Credit Thread - Part V

Lizzy

No it is not the same as a DEFAULT as you know it. They have just made you pay for going over the limit, as long as you have made your payments on time it will not show as late but it will show to other lenders that you are up to your limit and went over it which is not brill but not that bad for 4 pounds. The worry is that other lenders will see is that you are on the limit (as they do see what your limit and balance is and what your payments are). To make this picture look better you must pay MORE THAN THE MIN PAYMENT each month and bring it down. Cut it up if you can and pretend for spending you don't have it.
Also be aware that the interest that is applied (monthly) could possible take you over the limit again and they will require all that back on the next payment (or before) plus another over the limit fee even if it was the interest that did it.

badcredit

Thanks for the replies.

Basically my e-statement was issued today, when I checked it I noticed it said I had a default sum, so I called immediately and made a payment to bring me under limit. But they said it takes 3 days to show.

The direct debit doesn't come out until November but I will be paying off the limit in full.

So from what you've said I take it my chances at re-building credit are not destroyed?

stephane wrote: »

This is not a default, you've been charged an over limit fee, they may report it as a late payment but they may not....not much to be worried about.

Can they do that?! I'd be seriously annoyed if they reported me as having a late payment when I haven't actually paid late.

On another note I hate the call centres they use.

Lizzy wrote: »

No it is not the same as a DEFAULT as you know it. They have just made you pay for going over the limit, as long as you have made your payments on time it will not show as late but it will show to other lenders that you are up to your limit and went over it which is not brill but not that bad for 4 pounds. The worry is that other lenders will see is that you are on the limit (as they do see what your limit and balance is and what your payments are). To make this picture look better you must pay MORE THAN THE MIN PAYMENT each month and bring it down. Cut it up if you can and pretend for spending you don't have it.
Also be aware that the interest that is applied (monthly) could possible take you over the limit again and they will require all that back on the next payment (or before) plus another over the limit fee even if it was the interest that did it.

As mentioend I will be paying it off in full before the direct debit is due, will that hopefully change things?

stephane_2

Your slight over limit will almost have no impact whatsoever after 6 months but as long as you keep your spending in control and that you stay well below your credit limit and paying more than just the minimum payment

badcredit

stephane wrote: »

Your slight over limit will almost have no impact whatsoever after 6 months but as long as you keep your spending in control and that you stay well below your credit limit and paying more than just the minimum payment

I'm tempted to cut credit card up, I also have a contract phone will that alone be enough to rebuild my credit history?

ElkyElky

badcredit wrote: »

I'm tempted to cut credit card up, I also have a contract phone will that alone be enough to rebuild my credit history?

Why were you even that close to the maximum limit? Capital One gave you a second chance to prove that you're worthy of managing credit and you've already exceeded your limit. You need to learn from your mistakes in the past and do things differently - if you don't get your act together, you'll end up defaulting all over again.

No, your phone contract won't be enough to rebuild your credit history.

If you don't think you can manage the credit card, get rid of it.

Lizzy

If you clear your balance in full that wont help to rebuild your credit because the idea is that it shows you are making your paments on time and more than the min. By clearing your balance you will pay no interest, so why would companies be interested in you because they are getting no interest. Hard to explain but do you understand that ?
Although I do not advise having a balance on it, you actually need one. I don't know what your limit is but if you just keep 2 or 3 hundred on it and make more than the min payment it will look better.
Might be best to cut the card up if you can't trust yourself especially with Christmas coming.

callum9999

Lizzy wrote: »

If you clear your balance in full that wont help to rebuild your credit because the idea is that it shows you are making your paments on time and more than the min. By clearing your balance you will pay no interest, so why would companies be interested in you because they are getting no interest. Hard to explain but do you understand that ?
Although I do not advise having a balance on it, you actually need one. I don't know what your limit is but if you just keep 2 or 3 hundred on it and make more than the min payment it will look better.
Might be best to cut the card up if you can't trust yourself especially with Christmas coming.

I know you're just trying to help, but that's a complete load of rubbish.

By paying in full you are showing you make your payments in time so (assuming you do this) you are just wasting your money by paying unnecessary interest charges. If anything, not paying in full suggests that you might not have the money to repay your debts - so while your current company may find the interest they are getting attractive, I don't imagine a different company will analyse the credit reports so they get the people who can't necessarily afford to pay back what they are borrowing - pretty risky on their part.

ElkyElky

I got a letter sent to my address, addressed to someone elses name from a debt collection company saying they owe £600. The usual drivel about how they'll instruct solicitors if they don't receive payment in 7 days.

I'm not even going to bother telling them they've got the wrong address.



*to the letter police: Yes, I know I've broken the law by opening someone elses mail, I really don't care so sue me. I'd open yours given half the chance. :j

Zack1

That's just stupid! I've got to pay Royal Mail again for redirection because of my name change I'll need both names running for a while anyway, some muppets won't write to me in the proper name for ages!

I'm also thinking of opening a book on which company will take longest to process the name change. Natpest @ 10/11 is a popular option....

onefortheroad_2

Zack1 wrote: »

That's just stupid! I've got to pay Royal Mail again for redirection because of my name change I'll need both names running for a while anyway, some muppets won't write to me in the proper name for ages!

I'm also thinking of opening a book on which company will take longest to process the name change. Natpest @ 10/11 is a popular option....

natwest do it fast i had my new cards in 5 days did you do it by Deed Poll i did it back in 1995