Previous tenants bad debt

mystra

Hi


We've lived in our rented flat for a while now (i moved in March and my OH in october - we updated our addresses with the banks at these times too)

My OH has just been refused a loan to pay back his overdraft, he made an appointment with the bank who told him all the usual reasons (he wanted an appointment with someone who could advise him of what else he could do etc ie a financial advisor and he got a cashier who kept saying 'dunno' lol)

Obviously he will need to get his credit report from the usual places... but just a thought as this is one of the problems suggested by the bank... could previous tenants of our flat effect our credit? We used to get baliffs coming for 3 different people and red letters etc... so there's going to be a very black mark over this flat :S

The only credit i've tried for since moving in was for my mobile which went thru fine. And i've moved home a lot because of my parents. My OH lived at his parents his whole life til we moved in together!

I feel awful for him... he really got into debt with his uni overdraft and has been trying get out of it for 2 years and still can't due to various things...we finally have good jobs and he still struggles...i'm making progress but he really isn't i think he thought the loan would help (better structured - has to be paid and takes him back up to 0 for a fresh start etc)

Any advice... i don't know all his outgoings... but we pay around 600 a month for rent and bills each...possibly an extra £100 on top food... he has 350 left on a credit card to pay and 1800 overdraft and earns 22k a year. he hasn't got a car or anything else to pay for luckily! Just £70 a month travel (cheapest option for him)

zppp

mystra wrote: »

Hi


We've lived in our rented flat for a while now (i moved in March and my OH in october - we updated our addresses with the banks at these times too)

My OH has just been refused a loan to pay back his overdraft, he made an appointment with the bank who told him all the usual reasons (he wanted an appointment with someone who could advise him of what else he could do etc ie a financial advisor and he got a cashier who kept saying 'dunno' lol)

Obviously he will need to get his credit report from the usual places... but just a thought as this is one of the problems suggested by the bank... could previous tenants of our flat effect our credit? We used to get baliffs coming for 3 different people and red letters etc... so there's going to be a very black mark over this flat :S

The only credit i've tried for since moving in was for my mobile which went thru fine. And i've moved home a lot because of my parents. My OH lived at his parents his whole life til we moved in together!

I feel awful for him... he really got into debt with his uni overdraft and has been trying get out of it for 2 years and still can't due to various things...we finally have good jobs and he still struggles...i'm making progress but he really isn't i think he thought the loan would help (better structured - has to be paid and takes him back up to 0 for a fresh start etc)

Any advice... i don't know all his outgoings... but we pay around 600 a month for rent and bills each...possibly an extra £100 on top food... he has 350 left on a credit card to pay and 1800 overdraft and earns 22k a year. he hasn't got a car or anything else to pay for luckily! Just £70 a month travel (cheapest option for him)

Addresses are not blacklisted, so as long as there is nothing under financial associations on your credit file, this will not affect it. It may be that he doesn't meet affordability criteria or another reason. Without the full details, it is difficult to determine what the reason is for the decline.

Consumerist

Are you both on the electoral register at the new address?

Have a look at your credit files before trying again or you could make matters worse by having numerous recent credit searches. You can ask the bank which CRA they used when processing your application.

mystra

Consumerist wrote: »

Are you both on the electoral register at the new address?

Have a look at your credit files before trying again or you could make matters worse by having numerous recent credit searches. You can ask the bank which CRA they used when processing your application.

yes we both are, sent it off just before he moved in (when we knew it was definate). I'll persuade him to go back the bank for a proper chat so he can find out which CRA they used or if there are any other options. I've told him not to try any where else as he will make matter worse.

The annoying thing is he was offered a loan by the bank last year to pay of his student overdraft as part of his grad package... he still has that but now they've changed their minds about the loan available to him. They said he can only borrow £500... what difference is that going to make!! Plus even if he tried that i bet it wouldn't work now because of this credit check. I told him not to do it online...we have problems getting some systems to recognise our address - he'd have been better going into the branch for this i reckon!! Or at least have better advice than just heading into it blindly

zppp

Is there a reason he is desperate for a loan for that amount anyway to clear the overdraft? The APR is likely to be extremely high due to the small amount in comparison to the overdraft. It may be worth seeing if he could switch the overdraft to another bank or set up a regular payment to clear the overdraft monthly until it is done. You may want to get advice from the DFW board regarding the easiest way to go about this.

mystra

zppp wrote: »

Is there a reason he is desperate for a loan for that amount anyway to clear the overdraft? The APR is likely to be extremely high due to the small amount in comparison to the overdraft. It may be worth seeing if he could switch the overdraft to another bank or set up a regular payment to clear the overdraft monthly until it is done. You may want to get advice from the DFW board regarding the easiest way to go about this.

yeah he just feels like he can never get out of it. The APR was pretty normal, less than his credit card which is about 16% i think... he said the apr went up when he checked the repayments calculator for more rather than less. Thing is i think they will get rid of his overdraft in July as he wont have a grad account anymore and the APR will be more than any other option at that point and there's no way he can get out of it before then

jon_boy75

£2,150 is not a huge amount of debt, if I'm understading the post correctly.

That's £179 a month for a year to be debt free, plus interest of course. If he can't get a cheaper APR I wouldn't worry too much.

Consumerist

If he was offered a loan last year and nothing has happened since then, it would seem that his credit record is good. If that is the case then he may want to consider a 0% "super balance transfer" credit card once he has verified that his credit file is clean.

This would give him up to 17 months to clear all the debt - at about [STRIKE]£180[/STRIKE] [Edit: £130 ] pm with no interest.

Edit
It might be advisable to wait a few months before applying, however, since there has been a recent rejection of a loan application.

mystra

Consumerist wrote: »

If he was offered a loan last year and nothing has happened since then, it would seem that his credit record is good. If that is the case then he may want to consider a 0% "super balance transfer" credit card once he has verified that his credit file is clean.

This would give him up to 17 months to clear all the debt - at about £180 pm with no interest.

Edit
It might be advisable to wait a few months before applying, however, since there has been a recent rejection of a loan application.

cool, we'll look into that

Ive_A_Horse_Outside

mystra wrote: »

Any advice... i don't know all his outgoings... but we pay around 600 a month for rent and bills each...possibly an extra £100 on top food... he has 350 left on a credit card to pay and 1800 overdraft and earns 22k a year. he hasn't got a car or anything else to pay for luckily! Just £70 a month travel (cheapest option for him)

22k a year is approx £1360 after tax and student loan. £600 on rent and bills and £100 ish on food and £70 travel still leaves ~£600 a month left over. 3/4 months of not hitting the pub on friday night and no more internet poker ;-) will have him sorted with no need for a loan!!

mystra

Ive_A_Horse_Outside wrote: »

22k a year is approx £1360 after tax and student loan. £600 on rent and bills and £100 ish on food and £70 travel still leaves ~£600 a month left over. 3/4 months of not hitting the pub on friday night and no more internet poker ;-) will have him sorted with no need for a loan!!

we don't got the pub hardly ever! i don't think he even knows how to play poker lol... his worst habit is going out for lunch and shopping online... but i don't like nagging either