Loan with defaults

AbuHamza

Hi

Just a query before I screw my credit file further by getting refused loans. I am around £12000 in debt to 4 credit cards and all but one have put their interest up recently and its getting silly. I want to ask my bank if they will give me a loan so I can wipe them all clean and just pay a fixed sum over say two years. The problem is I have three defaults on my file. Two of which were not really my fault as I move house fairly often and a lot of correspondance had gone to an old address. I only knew about them once the debt had passed onto collection agencies who tracked me down.
I earn a decent salary, £58k, and have been with the same bank for many years. I think if I ask them for a loan I'll get the "computer says no" because of my credit file even though I can comfortably afford to repay the loan.
Any ideas? Worth applying anyway?

boobies

If you can "comfortably" afford to repay a loan, why have you found yourself in the current mess?

Tixy

Did you opt out of the interest rate increases? if not how recently have they put them up? you have 2months to opt out.

Its likely the defaults will make it difficult to get a loan.
How old are the defaults? do they show as settled? how much were they for?

Your own bank would be the place most likely to lend to you based on the info provided (assuming you've run your account with them well, don't max your overdraft each month and don't have payments bouncing).

Are you paying more than the minimums each month on your card debts? is there any scope between them to move the debt around to move it to the cheapest APR? Do you have any other old open credit cards with nil balaces?

Making an application and subsequently being turned down won't screw your credit file further - it will simply show as a credit application search. Lots of these in a short period are bad news, but an odd 1 is going to make little difference.

DCFC79

Surely if you earn 58k you could easily pay off the £12k in a matter of months ?

AbuHamza

Wow, thanks for the fast responses.
I was up until fairly recently on a lower salary hence only paying minimum payments and the defaults even further back (approx 1 year ago). The most recent rate increase was a couple of months ago I believe. My current account is always well maintained and if 1 search won't hurt I'll crack on and see what they say.

Thanks

pauletruth

if you now have such a good wage. why borrow. save up the extra and you will get 12k within months

MentalMinnie

I'm sorry, but I find your username offensive, and distasteful.

ILW

MentalMinnie wrote: »

I'm sorry, but I find your username offensive, and distasteful.

It may be his real name, or is he banned from using the internt?

MentalMinnie

ILW wrote: »

It may be his real name, or is he banned from using the internt?

Total communication ban.

tell_it_how_it_is

AbuHamza wrote: »

Wow, thanks for the fast responses.
I was up until fairly recently on a lower salary hence only paying minimum payments and the defaults even further back (approx 1 year ago). The most recent rate increase was a couple of months ago I believe. My current account is always well maintained and if 1 search won't hurt I'll crack on and see what they say.

Thanks

Would it then not have been advisable to (or still be advisable to) treat most of the increase in your income as extra money towards paying off your cards, for a few months until you were (are) straight? As others have mentioned, surely on £58k the ideal scenario is to clear it off with that extra, rather than look for another loan?

Bravehearted_2

MentalMinnie wrote: »

I'm sorry, but I find your username offensive, and distasteful.

You're a moron - and I'm not sorry.

If I had a sister named Minnie, I should be offended at your username.

Who are you to judge a person's name as inappropriate.

OP - save. 3 defaults are a turn-off just like onion breath.