Loans with poor credit history

Apples2

moatmeister wrote: »

Welcome to the bank of Moatmeister!

Ironically moat, you are one of the very reasons the OP has no chance of getting a loan.

Lenders are looking ever increasingly into the depths of an applicants current commitments and track record. In your case you come saddled with a £2.5k overdraft :eek: which is only the tip of a very large iceberg.

Like the Titanic, that iceberg is going to send you to the bottom with no salvation. The lenders do not wish to be onboard when it all happens.

How many chances SHOULD people be given?
How much debt compared to income SHOULD people be offered?
Would YOU offer money to someone with a history of not repaying?

moatmeister

As always, there is a middle ground.

I am not advocating throwing money around and a lending system described above would be unneccessary for everyone, but there are plenty of genuine people out there willing to pay to borrow but being knocked back before they even start by an overly cautious and uncompassionate system. The banks have lost all credibility with the general public and a little more flexibility and human intervention would go along way.

Tixy

The problem is there are more people wanting to borrow money and who are applying for loans than each bank is prepared to lend to individuals at the moment. They don't have an infinite pot of money for unsecured personal loans.

So of course they are going to choose to lend to customers who they believe are lower risk. There are enough of these customers around so that the banks are simply not interested in higher risk loans to people who may or may not have changed since they last had something negative on their credit file.

Apples2

6 years is a bit of a key figure, it is all encompassed within Data Protection and such things.

If you go to see a Solicitor for any kind of advice, he/she opens a file and takes some notes. they are also obliged to retain those notes for 6 years, after which time, they can be destroyed.

This flows though many situations and the Credit Agencies are no different, they must also retain information for 6 years, it is more than just an apparent "victimisation", there are regulations governing how they operate.

moatmeister

Thanks to Apples for at least remembering a previous thread!!

You will be pleased to hear that the £2.5K o/d is now significantly reduced and should be cleared next week following the sale of some surplus items.

In terms of credit file would you advise keeping o/d and clearing some CC debt or clearing o/d. I would assume clearing o/d is seen as preferable???

Apples2

moatmeister wrote: »

In terms of credit file would you advise keeping o/d and clearing some CC debt or clearing o/d. I would assume clearing o/d is seen as preferable???

I would say so yes, simply because an Overdraft can be withdrawn with no notice.

Unlikely but you could be faced with having to find £2.5k with little notice. You would have virtually no chance of avoiding a default and the hassle of debt collectors.

At least with a Credit Card you remain in control of the repayment.
Having said that, I firmly believe in tackling the highest interest accruing debt first.

jamie1985

ok thanks for the replies everyone. Looks like id be best off just buying a car out of my savings and waiting until the default is gone. Can anyone tell me what the situation is after the six years is up and the default is no longer on my credit record?? Im talking in terms of getting loans/mortgages etc...
Cheers

simon2010

The MOAT is a hero and makes complete sense! People come here judging one another/ giving their opinions, but moat was spot!

To the OP - you wont get anyone interested in you until that default has gone, I know I had one and still cannot get credit properly. 6 years is a death sentence on your credit file, and basically cripples anyone who has one. Only place will be blackhorse, provident, and PDL companies.

I own a house, earn 40k, permanent job etc, but STILL cannot get credit! All current credit commitments are completely up to date, but I am struggling as I cannot get out the mess because no one (and I mean no one!!) will listen to my circumstances and see that a longer term loan is the logical answer. I have said it on here before:- Banks should listen to circumstance, loan the money!!!!
I would be more than happy if then:-
1. You were banned from applying for credit until that loan was paid off (without affecting your credit file).
2. The loan was automatically taken from your wages prior to getting paid.


Like Moat, it makes complete and utter sense. BANKS - GIVE US HUMAN BEINGS TO TALK TO!!!!!

You watch the 'bank managers' on here now tear me to shreds!!! lol

Moat 4 Bank of England boss!!!!!!!

moatmeister

Hi Jamie

Sorry for slightly hijacking your thread!

After 6 years, once your default has gone of your record, it has gone. If you have been playing the game correctly in the meantime you should be fine to access further lending facilities because, all other things being equal, the computer will say "yes" . Wheras one day previously, it would have still said "no" QED!

Good luck!