We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Good Credit, Perfect Bank Account- Refused Credit Card

Hi All
I really need help as I have had conflicting advice so far.

I defaulted on a loan in 2005. I then agreed a payment plan (paying less that previously agreed) with the bank which I have been paying religiously for the past 6 years.

I am now looking to buy so got a credit report and the defaulted loan didnt even appear on it. So I spoke to a mortgage advisor who said it would be fine to still have the loan outstanding while applying for mortgages as they will only look at the monthly outgoing and not the amount or fact that its a previously defaulted loan.

Today I went to my main bank (Natwest) to get a credit card and despite having the perfect account and a good report from Experian they refused my application saying its because of the loan as it is still being dealt with by the Central Debt Collection Services.


They say I am unlikely to get a credit card or mortgage until this debt is clear. can someone clarify this for me?

Comments

  • A default should of been taken off your report 2011 so how do natwest know about this debt.
  • perhaps it is for the best?
  • RichL74
    RichL74 Posts: 938 Forumite
    Eighth Anniversary 500 Posts Combo Breaker
    The loan wasn't with Natwest was it?
  • chanz4
    chanz4 Posts: 11,057 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    my guess is yes as its central debt recovery
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • ses6jwg
    ses6jwg Posts: 5,381 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Some banks will blacklist you permanently. That's their decision to make.

    If you default on a loan or credit card with Santander for example, its extremely unlikely they'll offer you any more than a basic current account with no lending facilities ever.
  • RichL74
    RichL74 Posts: 938 Forumite
    Eighth Anniversary 500 Posts Combo Breaker
    Hmm okay advice for OP, don't !!!! on someone (ie take out a loan with Natwest and default on it) and then go back to rub it in (ie apply for a mortgage with the same bank)
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.4K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.4K Spending & Discounts
  • 245.4K Work, Benefits & Business
  • 601.3K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.