Some advice please

spowell

I need to borrow about 15k but have 2 defaults that were issued in Aug 01 (both satisfied). I earn a reasonably good salary of 30k and have no other debt. Will any of the reputable firms look at me or will I just get landed with a company who charge a extortionate APR?

enjoyincubus

it will probably differ from lender to lender to be honest, although the fact they are satisfied and over 5 years old should help. Unless they were for stupidly silly amounts then I don't think you would have much else to worry about. Although there are a lot of other factors that would influence the rate which you haven't gone into. For example, age, time in employment, current debts etc

enjoyincubus

Just as a note that I forgot to add...

After six years the defaults (and any other blips on your credit file) drop off, so any lenders will not see them. So come Aug 2007 your defaults will never have existed as far as lenders are concerned.

But when an underwriter is looking at a credit file, any blips 4 or 5 years old are usually not worth worrying about. Peoples circumstances can change in the space of 5 years - so if everything has been fine since then the defaults can virtually be ignored. It does becomes a problem when they are only a couple of months old though!

spowell

enjoyincubus wrote:

Just as a note that I forgot to add...

After six years the defaults (and any other blips on your credit file) drop off, so any lenders will not see them. So come Aug 2007 your defaults will never have existed as far as lenders are concerned.

But when an underwriter is looking at a credit file, any blips 4 or 5 years old are usually not worth worrying about. Peoples circumstances can change in the space of 5 years - so if everything has been fine since then the defaults can virtually be ignored. It does becomes a problem when they are only a couple of months old though!

Have been into my bank today Lloyds TSB to see about a loan and can't believe the outcome really. They have said they would not give me a loan due to the credit score but have given one to my wife. That sounds fine until I tell you that she doesn't actually work and they have used my income on the affordability calculation anyway.

Not that I mind really as I've got the cash I was after :j

enjoyincubus

spowell wrote:

Have been into my bank today Lloyds TSB to see about a loan and can't believe the outcome really. They have said they would not give me a loan due to the credit score but have given one to my wife. That sounds fine until I tell you that she doesn't actually work and they have used my income on the affordability calculation anyway.

Not that I mind really as I've got the cash I was after :j

I am presuming you are both not finacially linked (never had any joint loans, joint mortgage etc) as if you were both financially linked your defaults would count against your wife too...

Were you a joint on the loan, or was it your wife only - with you providing supplemental income to afford the loan?

Ah well as long as you got the money you needed in the end, I suppose it doesn't matter whether its in yours or your wifes name!

jonesMUFCforever

This often happens!
The wife may not have the income on her own but she also does not have the defaults/judgements against her.
It's a weird world!