Question Concerning Defaults

CornishWildFlower

Hi all,

Have been reading various threads about defaults and the resulting consequences. Both my husband and I have a default each from 2005 when I was made redundant and was expecting our first child, caused quite a lot of problems, our finances being the first casualty. Thankfully they're both paid off and will come off credit reports this year.

My question is this, I've read that no average lender will touch a person with defaults, however in 2008 we got a loan from Abbey for £3K (not much admittedly) and in 2009 were given a current account with Alliance & Leicester with an overdraft facility of £1400, how is this possible?

OH banked with Abbey alright but, given our fairly turbulent 2005 his current acount had looked like a minefield for a while with loads of charges hence the switch to A&L. I've banked with HSBC for 18 years and still do. Is it possible that they look at any other criteria? Not looking for a loan, just curious.

KingElvis

Yep, banks have an internal rating system which (normally) puts you on some kind of internal scale. If you run your account properly, that is will no bounced direct debits and you don't constantly live in your overdraft, they will always be the most sympathetic to your needs.

Also defaults mean less and less the older they get unless you go to absolute prime lenders....MBNA for example.

All the best

Elvis