Bad Credit "guaranteed loans".

andersinho

Hi, I have a terrible credit history, having gone to Canada for a few years and stopped paying some of my debts simply because I couldn't afford to. I didn't move away because of this, in fact, I was still paying my debts for the first six months, but because of the exchange rate and my lower wage, I was paying through my nose and couldn't afford to live.

Anyway, I am now back in the UK, just about to set up a bank acct. with Barclays if I can, and I also have a good paying job now too. I was looking at some of these guaranteed loans on the interweb where the interest rate is like 50%, and initially I thought it was daylight robbery. But, if it was only a small amount, say 2k, wouldn't YOU pay a grand to get your credit history back on track quickly?

Basically, if you were to go with one of these guaranteed loans, will they report to the credit bureaus like other financial firms? Surely that could help get things back on track?

tell_it_how_it_is

Or as an alternative, especially now you have a 'good paying job', why not spend a few hours working out your incomings and outgoings, see what you could feasibly put aside to pay off debts each month, then get in touch with the companies you owe money to and try to come to some arrangements?

If this still seems a bit daunting, you could alternatively collect together what information you have, and make an appointment to see CAB, and ask them to help and liaise with the companies on your behalf.

heathcote123

andersinho wrote: »

Hi, I have a terrible credit history, But, if it was only a small amount, say 2k, wouldn't YOU pay a grand to get your credit history back on track quickly?
QUOTE]

No. If I could afford to pay a grand back, then i probably wouldn't really need credit anyway.

barbarawright

Are you trying to pay your debts or get borrow more money?

Tixy

Absolutely not.
Paying this loan won't get your credit back on track at all.

First do you even know what is on your file currently? have you got copies of your credit files? How long ago did you stop paying the loans?

It may be that the negative info has dropped off your file - in which case you could probably get a sub prime credit card or even a credit builder prepaid card to start rebuilding your history (that works at as £60, far less than £1k).
If the negative info is still on file - defaults still showing unpaid debts or CCJs - then just having 1 new loan agreement won't make your file look good.

andersinho

Thanks for your input all. TBH I haven't even got my credit report yet, I've only been back in the country for a week. I think I will give the bad credit loan thing a skip and just look at a secured credit card instead (that's actually what I had in Canada to build up my rating over there).

Expect more posts as I start to clean myself up a bit

CLAPTON

when did you default on these debts?

get copies of your credit files and see what they say; it's pointless discussing improving your credit record without knowing what it is

UK don't do secured credit cards

KingElvis

No such thing as secured credit cards but I think the RISE Visa is sorta one...I think

andersinho

CLAPTON wrote: »

UK don't do secured credit cards

Oh, I didn't know that. It's a good idea, I wonder if we will adopt it.

geoffky

But you are not allowed to pay for your shopping by credit card in Canada are you?

cottonhead

I would avoid getting a loan if you can. You cant pay to fix yur credit file and taking out a high interest loan can just be detrimental. I had several payday loans and although they tell you it helps your credit history because lenders see you are paying them back - I found the opposite. My bank was really suspicious to see the payday lenders on my bank records. Get your credit file and deal with the debts little by little, living as cheaply as you can and get back on track that way.