Loans with bad credit history

littlelegs13

I have a current loan for my car which I have had on a reduced payment plan of £125.00pm instead of £308.00pm for the last 3 years but the company will not extend it for any longer so I have been looking for a loan to pay the rest of the loan off which is around £6.5k and keep the payments around £100-£150pm which I can afford but keep getting turned down because I have a default on my credit history from a old mobile contract which was in my name but my ex husband used and didn't pay the last bill when the contract ended and because I had moved house wasn't aware of the default for over 6 months when I looked at my credit report :mad:
Is there any reputable loan companies that I can try that will accept me with my bad history?

Wutang_2

I don't think its the mobile doing the damage, its the reduced payments.....you want a payment of between £100-£150, do you not have ths?

paddyrg

If you borrow the £6500, you do realise they will also need paying back, so you won't keep the payments down, just split them between 2 lenders?

Honestly, the reduced payments probably don't cover much more than the interest on the loan, nobody will take that as a serious lending proposition.

In short, I don't fancy your chances. Can you ask the lender about voluntary termination (depending on the type of loan) or any other way of selling the car to reduce the debt?

paddyrg

Sorry to double post, but the edit function stopped working on my phone, and won't let me save changes.

Please disregard the first para above - you want a loan to pay off the full value, not just reduce the principal to be low enough to pay at £125/month. 2nd and 3rd paras still stand more or less - basically, can you find any way to flog the motor and use the cash towards repaying the loan? If it really is *essential* to have a car, get a clunker, but it sounds like you can't afford to own a car right now, so let it go with good grace, and ask the finance company if they will let you return or sell it?