Loans with poor credit history

jamie1985

Hi all,
I am wondering if anybody would be able to give me some advice. I am 26 yrs old and looking to get a loan for around £4000, the only problem is a have a default on my credit record, when i was 20 i got a loan for £3000 to go to australia with friends when i got back i was careless and stupid and let it get to the point where the loan was passed on to the debt collectors, the default was settled and the date of default is 04/03/2008 so i guess it will be off my record in 2 yrs time?? What do you think my chances of getting a loan are? i am currently earning about £35k a year and can easily afford the payments, i have an up to date credit card, a mobile phone contract and am on the electoral role.
Any advice is much appreciated.
Cheers
jamie :beer:

DCFC79

Cant answer your question but have you tried saving up for it ? You should be able to get what you need in a matter of months.

jamie1985

i could save it up yes but 1. i thought it would improve my credit rating and 2. just had a bump and wrote my car off and would like the money to put to a new car.

moatmeister

Unfortunately the fact that you recognise that you were "careless and stupid" in the past, whilst highly commendable, just does not count.

The tightwads with perfect lives that control the lending only see things in black and white, right or wrong, and are not prepared to give anyone the benefit of the doubt even if they have the best of intentions. Bear in mind that these people are the ones that will lend you an umbrella when it is sunny but want it back when it is raining.

Been there myself. Not saying you wont get a loan but good luck!!

bigadaj

Always been the case that banks prefer lending to people who already have money it's safer. Moatmeister, you could always offer the op a loan yourself.

moatmeister

I cant give the op a loan because

a) I have no available spare cash myself due to the requirement I take very seriously to meet all my commitments on time
b) His bank should do it because that is their job

The point is many people make mistakes in life, learn from them and continue to get punished. His error was made 4 years ago and will stay with him for another 2 years. Thats a long time.

Instead of an automated yes or no from a faceless computer system, why cant we have a middle ground? The scenario could go like this.

Jamie1985: "Hello Mr Human Banker, I would like to borrow £4k please here is my application"
Human Banker: I have keyed in your details to my computer. It has not said yes or no because I see you have had problems in the past although you have a good job and a track record with us more recently. It has said "maybe, we would like to help if we can". Please come in and see me for a face to face chat. If you can convince me of your case and that you have pulled your socks up I have the power to make direct lending decisions and we may be able to help you even if it is for a lower amount at a higher rate. And by the way, we wont be putting a mark on your credit file by making an automatic rejection which will make it even harder for you to go forward in the future when the only thing wrong you have done is to apply for a loan you were never going to get"

Why do things have to be so automated driven by people living in their ivory towers and protecting their £million bonuses?

Any bankers out there care to comment?

Having aid this, I do have to go with the advice given by others here. Save up for your car if you can and buy well. There are some good deals out there to be had!

poppasmurf_bewdley

moatmeister wrote: »

I cant give the op a loan because

a) I have no available spare cash myself due to the requirement I take very seriously to meet all my commitments on time
b) His bank should do it because that is their job

The point is many people make mistakes in life, learn from them and continue to get punished. His error was made 4 years ago and will stay with him for another 2 years. Thats a long time.

Instead of an automated yes or no from a faceless computer system, why cant we have a middle ground? The scenario could go like this.

Jamie1985: "Hello Mr Human Banker, I would like to borrow £4k please here is my application"
Human Banker: I have keyed in your details to my computer. It has not said yes or no because I see you have had problems in the past although you have a good job and a track record with us more recently. It has said "maybe, we would like to help if we can". Please come in and see me for a face to face chat. If you can convince me of your case and that you have pulled your socks up I have the power to make direct lending decisions and we may be able to help you even if it is for a lower amount at a higher rate. And by the way, we wont be putting a mark on your credit file by making an automatic rejection which will make it even harder for you to go forward in the future when the only thing wrong you have done is to apply for a loan you were never going to get"

Why do things have to be so automated driven by people living in their ivory towers and protecting their £million bonuses?

Any bankers out there care to comment?

Having aid this, I do have to go with the advice given by others here. Save up for your car if you can and buy well. There are some good deals out there to be had!

Like me, you remember how it used to be.

I once had my deputy bank manager come around to my home one evening to demand back my cashcard supply -in those days (1976) Williams & Glyns Bank gave you five plastic reusable cash cards each worth £20. Less than three years later, that same deputy manager gave me a car loan!

blitzboy

jamie1985 wrote: »

i could save it up yes but 1. i thought it would improve my credit rating and 2. just had a bump and wrote my car off and would like the money to put to a new car.

Can you not use the 'up to date credit card' to pay the garage?

Tixy

moatmeister wrote: »

I cant give the op a loan because

a) I have no available spare cash myself due to the requirement I take very seriously to meet all my commitments on time
b) His bank should do it because that is their job

Really? its their job? I thought a bank was a commercial organisation with a purpose to provide banking services to businesses and individuals in order to make a profit.

moatmeister

Absolutely my point exactly.

Banking services include loans which generate a healthy profit which we borrowers are prepared to pay for in set up charges and interest costs.

As well as the main yes or no lending operation, why cant they have a discretionary fund which they are prepared to gamble a bit more with, accessed face to face at local level which looks at more specialist cases possibly lending smaller amounts say up to £5k, charging higher rates with less strict criteria and with flexible get out terms but harder penalties for missed payments etc to cover their increased perceived risks, ultimately managed by a customer accessable senior manager at branch level who has direct responsibility for signing off the loan. It may cost a bit more to borrow but at least you could get the money from a reputable regulated source.

I am sure many people would welcome such a service and not abuse it. Ooo did I say service?? forgive me for being old fashioned!!

Welcome to the Bank of Moatmeister!

dealer_wins

moatmeister were you asleep throughout last decade or something? You know the one where everyone realised that lending money to people who had a propensity to not pay it back caused a few problems worldwide!!