The secret world of a credit underwriter

mountainofdebt

I know I've asked this question before but our circumstances have slightly changed.

Most of the credit card debt is in my name (for ease of administration!) and although it always seemed like hubby was more acceptable, he had a few rejections in November/October.

Anyway since then we've paid off our mortgage - will this increase the likely hood of him being accepted so we (I?) can transfer some of that debt into his name?

Also is it worth reapplying to the companies that he was rejected for or should I just try new ones?

Also before I apply should I reduce his balances where I can or should I not bother ?

Sorry for so many questions.

MOD

Mike_St_Helens

james23_uk wrote:

Thats an interesting one. What would you say Mike, if you had an application for credit from a 32 year old with good income with a blank 6 year credit history except for a well-run current account and possibly a mobile phone paid up contract.

As long as they were on the voters roll for a good amount of time, had a good income and job - Id approve a fair limit that matches the profile.

Mike_St_Helens

mountainofdebt wrote:

I know I've asked this question before but our circumstances have slightly changed.

Most of the credit card debt is in my name (for ease of administration!) and although it always seemed like hubby was more acceptable, he had a few rejections in November/October.

Anyway since then we've paid off our mortgage - will this increase the likely hood of him being accepted so we (I?) can transfer some of that debt into his name?

Also is it worth reapplying to the companies that he was rejected for or should I just try new ones?

Also before I apply should I reduce his balances where I can or should I not bother ?

Sorry for so many questions.

MOD

Personally Id leave it 3/6 months let some of the old searches drop off your credit files.

Id also see if there are ew companies you can try - they will certainly look at the old application and once the analyst see's a decline - then your mind gears that way again.

Mike_St_Helens

nomoneytoday wrote:

The current account probably wouldn't be on the credit record, unless it was delinquant (sp).

It most certainly will - most current accounts actually now do report. Abbey, Lloyds, Cahoot, Halifax.....

Bruce123_2

Hi Mike

Do credit underwriters take any note of a flawed credit file that say has an old default, old late payments etc, but all current credit agreements show a long list of '0's say 3 years and that all old debts are being steadly paid off.

ie do they look at it that well this person was in a mess with credit but now appears to have got their act together and is meeting all their monthly commitments new and old and therefore rubber stamp your new mortgage application, loan etc.

The reason I ask is that we need to add £10K to our mortgage for house repairs before it falls down.

NB The default is soon to be deregistered.

Any thoughts?

Broken_hearted

Ok I have a question. I always worked paid my bills on time yet i could never get credit at a good rate or high amount. My DH has always been useless with money and gets credit thrown at him, all of which he has now defaulted on. When I try to change credit cards to alower rate or get new credit I get turned down as I'm linked to him. Why?

oscar52

Can only link you if you have a financial association such as a mortgage or other joint debt - your personal debt shouldnt affect him and vice versa. HAve you checked your credit file to ensure all is in order?

Mike_St_Helens

Broken_hearted wrote:

Ok I have a question. I always worked paid my bills on time yet i could never get credit at a good rate or high amount. My DH has always been useless with money and gets credit thrown at him, all of which he has now defaulted on. When I try to change credit cards to alower rate or get new credit I get turned down as I'm linked to him. Why?

You could be linked for a number of reasons - the most common is a joint credit search in the past may have caused an association, thats if there isnt any joint credit facilities anyway.

Check it out...

Mike_St_Helens

Bruce123 wrote:

Hi Mike

Do credit underwriters take any note of a flawed credit file that say has an old default, old late payments etc, but all current credit agreements show a long list of '0's say 3 years and that all old debts are being steadly paid off.

ie do they look at it that well this person was in a mess with credit but now appears to have got their act together and is meeting all their monthly commitments new and old and therefore rubber stamp your new mortgage application, loan etc.

The reason I ask is that we need to add £10K to our mortgage for house repairs before it falls down.

NB The default is soon to be deregistered.

Any thoughts?

All defaults stay on the file for 6 years, settled or not. It really depends on the lender with this. But most lenders will look at it being historic and be able to approve. However the super duper low rate loans etc are for people with zero issues on the credit file.

Good luck !

james32_uk

Mike_St_Helens wrote:

As long as they were on the voters roll for a good amount of time, had a good income and job - Id approve a fair limit that matches the profile.

I've been told that once my IVA drops off (6 years from the date that it started) my credit file will be clean of any defaults. Is this true?

Also, are there any sneaky ways you would have looked to see if I had any bad history from before the 6 year cut-off point?