Override credit check

Joe_mac

Hi

Over the last 10 months or so I have came into some personal and financial difficulty with a gambling addiction, resulting in a £2600 credit card and numerous pay day loans. I am slowly but surely recovering from this and now starting to get my finances back in order, I still owe money to a pay day loan company and have only been making minimum payments on my credit card. I currently have a personal loan with Natwest, I tried applying online for a new loan, to cover my existing loan, credit card and any outstanding monies owed to the pay day loan. It came back declined online...

Do you think if I went into the branch, explained my circumstances with my gambling problem and now back on track that its possibe to override a credit check? I work full time salary £18k and live at home and don't drive so a bit of disposable income is available but that is currently taken up in a payday loan cycle!

This was hard for me to come on here and admit but wondered if anybody else has been in the same situation or can offer advice

Regards

Joe

Tixy

No - I would imagine there is no chance that a mainstream bank will lend to you in your situation.
Especially if you mentioned the gambling. And even if you didn't perhaps they'll be able to tell this is the problem anyway? - if you've funded the gambling direct from your bank account.

I would give up on the idea of a new loan and think up a new plan.

What is your major concern at the moment? do you just have 1 payday loan outstanding? how much for? is this in a repayment plan?

If its not in a repayment plan then perhaps consider this - to do this you'll usually need to open a new bank account with a new bank and have your salary diverted to that so that you protect your income from the PDL. At that point when they cannot raid your bank account they'll usually agree to a repayment plan.

Another option would be to seek advice and help from one of the debt advice charities.

Have you sought help with your gambling? do you currently feel like you have that under control? There are quite a few gamblers/ex-gamblers on here who have been through this and should be able to offer suggestions & support if you need it.

DCFC79

Look at it from the banks POV, heres a customer who had a gambling problem but is now back on track.

They will be thinking:

What if Joe starts gambling again ?
And if so would you be able to make the repayments
Whats to stop you gambling again Joe ?

The first step is as tixy says, get some help re the addiction, you may think your back on track but what if you have a relapse and go back to it.

jason1231972

It's theoretically possible, but not actually very likely. If you've used your Natwest account (assuming you also hold your current account with them) for payday loans and/or gambling transactions, then these transactions would be visible to the hypothetical person you'd be wanting to override the automated online decision. They'd also say no.

It is quite possible for a lender to pay your debts for you (i.e. you get no cash in your own hand, the lender pays your creditors directly, but you still repay the total amount of the consolidation loan). My partner works in lending (not bank - completely personalised underwriting, no computers), and frequently pays off client's debts directly - either through the client's choice, or because my partner and her colleagues effectively don't 'trust' the borrower to actually go away and consolidate their debts independently.

Banks are often willing and able to pay their 'own' debts directly with new consolidation loans - i.e. Natwest would theoretically be able to pay their own credit cards, overdrafts, etc. with their own loan. This is reasonably common when 'good' clients are automatically rejected for no apparent reason, but the decision is manually over-ridden.

If your credit card is non-Natwest, though, they're unlikely to bother considering this option for you.

And, in all cases, you'd need to be creditworthy in the first place, whether that decision is made by a computer or a person. Back to my first point, payday loans and/or gambling transactions will scare any reputable lender away.

As for alternative options, what is your credit history like? I mean in terms of have you ever missed payments, incurred CCJs, and so on? If your credit history remains reasonable, you may be able to transfer the £2,600 balance to a 0% or lower interest card elsewhere.

If your credit history is poor, what's the APR on your £2,600 credit card, and how much can you afford to pay off it per month? Closing the account (so you can't be tempted any more) and setting up a direct debit or standing order for a set amount per month (ideally more than the minimum payment...much more if possible) may see you free of a £2,600 debt in a relatively short period of time.

Apples2

List all your debts, £2.6k is neither her nor there, it should be entirely manageable on £18k living at hime and not driving. I can't fathom where the rest is going.

Have you fessed up to your Parents?
If you are paying keep, maybe throwing your cards on the table will help sway your parents into giving up the rent payments/bill for a while.

Your focus is to get shot of the PDL's, once one drops, it will free up more for the rest, when the second goes, you will clear the rest even quicker.
Another loan isn't going to help. It isn't a viable option anyway.

~Brock~

Apples2 wrote: »

Have you fessed up to your Parents?
If you are paying keep, maybe throwing your cards on the table will help

....did you really just say that to a self confessed gambler?? :rotfl::rotfl:

Joe_mac

I had a bit of panicky moment earlier when writing that, thinking im doomed, but assesing the pay day loan I owe about £500, im gunna just bite the bullit and pay it all off. I pay £150 a month lodge and £164 for my existing loan. Once the payday loan is covered, Im gunna speak to Natwest and try to refinance my debt to them, otherwise it will take me a long time to pay off my credit card.

Some brilliant advice given here and appreciate it all!

Any other tips would be greatly appreciated....

PS I've heard all the gambling jokes don't worry! ha

Tixy

You might still struggle to get a refinance deal even when the payday loan is paid off.

Have you worked out the maximum you can afford to repay towards your debts each month? Presumably you are taking home around £1200 a month?

If you can pay the payday loan this month - will you then be able to afford the £500 a month towards your credit card each month - if so you should have it paid off in around 6months (based on an APR of less than 30%).

Joe_mac

I have just had a quick look my finances and after taking away my lodge, existing loan, phone bill and other small direct debits, Id be left with around £750, so £350 a month would be a suitable amount to pay off per month. I have the Natwest platinum card..APR 17.9%

Joe_mac

Or even look at the option of taking a new credit card out and doing a balance transfer, with some companys offering 0% for 12 months

DCFC79

Joe_mac wrote: »

Or even look at the option of taking a new credit card out and doing a balance transfer, with some companys offering 0% for 12 months

If you can get 1, whats your credit history like or credit file like.