Bad Credit Loan

MoneyMousey

Hi all,

I'm just after a little advice if you'd all be so kind.

I'm looking for a loan but due to being a fool when i was younger i have a really bad credit rating. All my bad debts that i'd accrued are paid off and have been for approx. 6 years. I only have a Capital One credit card with a £300 limit which i use to credit build.

I'm only looking for £4000 which i can comfortably pay back over 3 years. This is to buy a new car to get me to work.

I've obviously done internet searches but the results are all loan brokers. I do not want to deal with these people as they seem pretty useless and after looking at some of other peoples threads they are downright devious.

I just want the name of a company that will accept me, if anyone knows of anyone reputable. I am not a homeowner and cannot give a guarantor.

I take home £1600 per month. I pay £450 rent and my Capital One payment is only £15 per month.

I know i need to examine my Equifax report but i really need a loan to get a vehicle and pay insurance etc ASAP. I thought my rating would have gone up after my problems were sorted but it's proving difficult.

Can anyone recommend anywhere.

Many thanks.

poppasmurf_bewdley

You say your problems go back about six years. If these are more than six years old, they will have disappeared from your credit file.

Best to check your credit file first with Experian and Equifax to see what is actually recorded in their files. You should be able to get free 30 day trial but don't forget to cancel to avoid paying.

Once you have your files, come back on here.

wensleydaleuk

or you could just sign up to Noddle, its free and takes about 5 minutes. Bye bye credit expert :-)

CLAPTON

your income seems quite reasonable
presumbaly you pay your CC in full each month and don't pay any interest?
why do you not have savings to pay for the car?

Tixy

It sounds like all your debts will all be gone from your credit files (but do check first by signing up to free trials or getting the £2 credit reports - by all means check noddle for free but its the least used of the agencies so sensible to check your equifax and experian files as well).

If all the debts are gone and you just have the 1 card your issue is likely to be too little credit history for the lenders to be able to judge the risk of lending to you (a 'thin' credit file).

You say your credit card is £15/month - does that mean you are only paying minimum payments? or are you just putting on £15 of purchases each month and paying off in full (ideally thats a better way to build your credit history than the former).

Have you actually applied for a loan with any mainstream lenders and been declined? Or are you assuming you will be and that is why you are searching online for bad credit lenders?

MoneyMousey

or you could just sign up to Noddle, its free and takes about 5 minutes. Bye bye credit expert :-)

Thanks very much for this WensleydaleUK. I have just done this and think i may have found a problem with my credit file.

I had a mobile phone contract with T-Mobile which to my knowledge was cancelled and paid in Nov 2010. However according to Noddle, T-Mobile have placed a default on my account for every month after up till present day claiming that £14 is unpaid. There is even a default for Jan 2012!!! I have had no letters or bills or any other correspondance. It's only £14, i would gladly pay it if i'd have known and saved this problem with my credit file.

Thanks again.

why do you not have savings to pay for the car?

CLAPTON. - I have no savings due to having a poorly paid job last year. I got a new job last November with much better pay and prospects etc. The loan was for a genuine reason and all my financial problems are in the past, never to return.

You say your credit card is £15/month - does that mean you are only paying minimum payments? or are you just putting on £15 of purchases each month and paying off in full (ideally thats a better way to build your credit history than the former).

Oooops. I've done this the wrong way round. I am only paying minimum payments. However, as per your advice, i will try and pay off the card and keep paying it off fully each month.

And yes i had tried a few different lenders for a loan and been declined. I know i can get a PDL from Wonga as i have used them in the past but i no loner need to use them and they can't provide me with the funds that i need.

Thanks.

Tixy

The problem will be the default - there will only be 1 default on your file at a given default date (the following markers simply state that its still defaulted, not yet satisfied).

This will make it very difficult for you to get credit. I would get in contact with t-mobile for an explanation of the charge, find out if they sent bills, and to what address they went to etc. Possibly they may agree to remove it in return for you paying it off.

Assuming you can get it removed -if you've got quite a few recent searches its best to wait a few months before applying for anything else (generally recommended to have no more than 3-4 applications in a 6month period).

Even if you can't pay off the full balance on the card, try to pay at least a little more than the minimum (only paying the minimum could be an indicator of debt stress to potential lenders).

How recently have you been using payday loans? If you use them frequently then again they are likely to put off prime lenders, as they are a sign of not being able to live within your monthly pay.

maginot

It's unlikely you would be able to get a loan from a mainstream lender given current issues.

You state that you only had issues with money 6 years ago, however since then you have taken out a capital one credit card and only made minimum payments, even though a small sum. You have a default on your mobile phone contract (need to contact them ASAP and hopefully get this removed if you pay and plead ignorance) and you have used payday loans, so still money problems.

You could try to go into your bank and explain your situation to see if they may lend to you. I would recommend face to face as the computer would likely say no!

MoneyMousey

You state that you only had issues with money 6 years ago, however since then you have taken out a capital one credit card and only made minimum payments, even though a small sum. You have a default on your mobile phone contract (need to contact them ASAP and hopefully get this removed if you pay and plead ignorance) and you have used payday loans, so still money problems.

I appreciate what you are saying but it is a little out of context.

The credit card is a credit building exercise, as i was aware my rating would be poor due to previous problems. I do not actually need the card.

The T-Mobile situation is one i was unaware of, and i am now in the process of resolving. I only wish i'd checked my credit file sooner now.

The PDL was due to an unforseen circumstance and due to having a low paid job i had no savings to cover the expense. This is another problem which is resolved. I will never need PDL's again.

Although i appreciate that anyone looking at my file would also not know these reasons so i understand how it may look.

Thanks though for your input.

fatbelly

Any Credit Union should accept you.

Search here:

http://www.findyourcreditunion.co.uk/home

You may find 3k is the max loan but if you go over to the motoring board they'll tell you you don't need to spend that much to get a reliable car.

KingElvis

Payday loans on your credit file are about as welcome as a pube in a trifle.