Bad Credit Mortgage - Considering Bad Credit Card

jamesd

Respect doesn't come into it for a lender. Proving you can handle credit does. That's particularly valuable for someone with past debt problems who has given lenders a reason to doubt their ability to do that. It's part of why its so useful in this sort of situation.

I'd hope that someone with debt trouble has learned from the experience and knows that it's real money they are spending and that they are going to have to account for it if they spend it. Maybe added maturity and other life experience to help if the debt problems happened while they were relatively young.

billybear1

I can assure you 100% that I am completely reformed, my habbits with regards to money have changed dramatically. Little things like checking my bank online (many times) daily. Cutting down on buying things (I can afford it now, it takes away the thrill in a way) and aspiring to perfect credit history beings I know my awful past.

I know it may be hard to believe, but I can assure you all that I would manage this card impeccably, I have no reason not to now. I am just unsure as to whether having that sub prime card would do more good than bad, considering my mortgage is a line of credit on my file, paid in full every month - is that not enough.

By the way my Experian score is 996! Complete B!!!!K!KHS obviously as I am (in the eyes of real scorers) HIGH risk!

jamesd

Not hard for me to believe.

That cutting down on the thrill bit is a big giveaway perhaps about what went wrong in the past. Good to read that things are better, even if the credit scores are taking a while to catch up.

Nice example there of the limitations of the credit scores from the credit reference agencies.

Businesses that check your credit report don't get told the brand of the credit card, just that it is a credit card. The brand part is just for you when you check yourself. They might speculate based on a credit limit or past debt issues, perhaps, but that's about it.

neil_999

neil_999 wrote: »

Ah but...wouldn't you respect a recovered drug addict, sat in a room full of drugs, and resists temptation more than someone who has never had a problem

I'm not saying any lenders think like that by the way!:D

It was only a joke guys!!:D

Thrugelmir

billybear1 wrote: »

I can assure you 100% that I am completely reformed,

You merely are a name on a piece of paper with a credit history. That's the basis on which you will be appraised. Cold and clinically.

Ktaylor86

Billy Bear,

I was just wondering who your mortgage was with?

Might be looking into this as a possibility.

Many Thanks

K

billybear1

GE Money - their lending criteria was (so assume it still is) any number of defaults as long as satisfied - with a default date of over two years. High LTV and high rates though. HUGE product fee (£2k)

But, IF you need a mortgage, or can afford the deposit it seem to make good sense - well it did for us.

billybear1

Thrugelmir wrote: »

You merely are a name on a piece of paper with a credit history. That's the basis on which you will be appraised. Cold and clinically.

Yes but my misdemeanors were a lifetime ago - in 3 years my income has a increased 500%, I have become a homeowner and a serial saver. Yet blights of 4 years old still have a HUGE impact.

Thrugelmir

billybear1 wrote: »

Yes but my misdemeanors were a lifetime ago - in 3 years my income has a increased 500%, I have become a homeowner and a serial saver. Yet blights of 4 years old still have a HUGE impact.

A credit card proves nothing. As it's revolving credit. If you were take out a loan and repay it without issue. Then yes, I would agree with it being a positive in the overall scheme of things.

To give added comfort to a potential mortgage lender. Save with the lender concerned for a period of time. This would give the lender first hand experience of you and your ability to manage money. Savings do not appear on CRA's records hence why they can give that added reassurance.