Trying to get a loan with a default.

the_boys_dad

Hi,

After getting divorced, I defaulted on a loan. It was for our car and, as married couples do, I took the £11,000 loan out in my name. When we got divorced we sold the car but there was a £2500 shortfall. I asked the lender if I could make lower payments over the full term of the loan but they insisted on keeping the payments the same but paying it off over a shorter period of time. I could not afford this and the loan defaulted (**BIG mistake!!**). Dealt with CapQuest and was paying the loan off at a reduced rate.

Started my journey to rebuilding my credit score last year and have gone from 504 Poor to 829 Fair. After taking advice from Credit Expert, I paid the FULL outstanding balance of the default, not the reduced figure offered as this should reflect better with potential lenders.

My problem is that I still cannot get a loan ANYWHERE and I am being told that, until the default drops off in 3 years time, I will not be able to. This makes me think what was the point of paying anything if it makes no difference?? I cannot believe this is right??

One light is that the default has been raised my CapQuest, not by the lender, Liverpool Victoria. When I rang LV, I was told that their banking arm had closed and all records with the credit agencies removed. I explained the situation and was told that, as CapQuest had raised the default, they would have to remove it. I made every payment with CapQuest and didn't actually default with them. I know it is a technicality but am hanging on to that.

Am really frustrated at the moment and would appreciate any help with getting a loan. Have tried my bank but they are not interested.

Thanks, in advance, for any advice.

Emmzi

I am afraid it is not a technicality and you did default.

Credit union?

opinions4u

You did default. This is reflected on the credit report as fact.

It's possible that your chances of getting credit will improve before it drops off your credit file. Not guaranteed though.

At present lenders have limited funds to dish out. If you imagine that they only have enough to give to 2 customers but have 4 applicants ...

1) clean credit history
2) a missed payment 5 years ago
3) a default 3 years ago
4) a ccj 6 months ago

Which 2 would you lend to?

simon2010

Credit union is your only hope..........

I had a default removed back in Nov 10 but still cannot get any credit anywhere. V depressing.

Lenders are just not interested or prepared to listen to circumstances either.

Good luck , get more work and join a CU!

CLAPTON

simon2010 wrote: »

Credit union is your only hope..........

I had a default removed back in Nov 10 but still cannot get any credit anywhere. V depressing.

Lenders are just not interested or prepared to listen to circumstances either.

Good luck , get more work and join a CU!

you don't give your circumstances or why you are desperate for a loan but maybe saving first and then spending is an option (and no money wasted paying interest)

Bravehearted_2

opinions4u wrote: »

You did default. This is reflected on the credit report as fact.

It's possible that your chances of getting credit will improve before it drops off your credit file. Not guaranteed though.

At present lenders have limited funds to dish out. If you imagine that they only have enough to give to 2 customers but have 4 applicants ...

1) clean credit history
2) a missed payment 5 years ago
3) a default 3 years ago
4) a ccj 6 months ago

Which 2 would you lend to?

3 and 4?

poppasmurf_bewdley

You've more chance of David Cameron lending you the money than any responsible lender. Sorry but that's the truth.

sky12_2

Interesting story. If your credit score with ICB looks poor one ONE loan contract, but you can show your Credit Union that the loan was fully paid, then you are in with a chance. You need to be a regular saver with the CU, ideally by standing order from your bank, you also need to have a clean bank statement with bio referral items or unpaids, and you need to have a steady income. Finally if your current debts call for more than 40% of your net income, you have enough debt already. Oh, and if you are maxed out on your credit card, that is your priority, not borrowing more (from a lenders perspective). Hope that helps you. Credit Union looks at risk. If you are a good risk, convince them and ask them what you need to do to borrow. They WANT to lend.