More Cahoot Advice

clarab_3

Hi first post - been reading a long time.

Yesterday I got the cahoot "we are raising your interest rate to 14.9%" letter.

Unfortunately in the past year I had some money difficulties due to ill health - I missed 2 mortgage payments and had collectors after me for council tax, and credit card. Happily i repaid the arrears within 3 months and am now up to date with all payments, but have been left with a "POOR" credit rating. I had no intention of applying for further credit and thought this was something I was just going to have to "tough out" until my credit rating improved with regular payments to my 2 existing loans and mortgage.

Does anyone have any advice on what to do with my Cahoot loan now? Or to speed the credit cleanup process so I might be able to swap it to a better rate elsewhere? I have 3 years to pay - wont happen overnight.

Xbigman

Cahoot are doing this to loads of people. It sucks.

What is actually wrong with your credit record? Are there CCJ's and defaults or just lots of missed payments?
Regards



X

clarab_3

Xbigman wrote:

Cahoot are doing this to loads of people. It sucks.

What is actually wrong with your credit record? Are there CCJ's and defaults or just lots of missed payments?
Regards



X

The mortgage defaulted and so did a credit card (I could shoot myself over it but at the time i was barely able to notice what was happening)

Everything is up to date now, and I have 4 months of clean payments since bringing them all up to date - but realistically Im screwed for at least 3 years amn't I?

enjoyincubus

My advice would be to try Abbey if anyone first. They offer a fixed term loan at 5.8%. Cahoot are owned by Abbey (just incase you didn't already know!)

If you have been paying Cahoot perfectly well they should be able to see this existing relationship and payment record from their system (hopefully Abbey employees can see Cahoot accounts...). The fact you have a few blips on your credit file should be outweighed by the fact that you are an existing customer with a good record. You may be variable priced as your credit score may be lower and therefore not get the best rate, however it should be less than the 14.9% Cahoot are offering.

Xbigman

Defaults are a killer on credit reports. enjoyincubus is right, try abbey first. Do you bank with Cahoot? If you don't then try your own bank next as, once again, there is a personal relationship.
But if neither of those works I don't think you will significantly improve on 14.9%, which is what Cahoot are counting on to keep you on 14.9%.

Just a thought, are the defaults marked as satisfied?
Regards


X

clarab_3

Xbigman wrote:

Defaults are a killer on credit reports. enjoyincubus is right, try abbey first. Do you bank with Cahoot? If you don't then try your own bank next as, once again, there is a personal relationship.
But if neither of those works I don't think you will significantly improve on 14.9%, which is what Cahoot are counting on to keep you on 14.9%.

Just a thought, are the defaults marked as satisfied?
Regards


X

Thank you both - yes they are satisfied, it was just my plan to live an exemplary:rolleyes: financial life for at least a year and pay it off as much as I could without applying for other credit - Need to steel myself to approach abbey I suppose