past bad credit loans?

jimbocrow

My partner and I are both trying to make full and final settlement on our DMP, as we have a bit of cash from a house sale. However, we don't have enough for both of us to be clear. As a result, my other half is considering taking a loan out. Moat of her debt is over 6 years old, so through experian her rating is 954, so excellant.

Can anyone recommend a bank who might accept her application? I know she has a good credit score, but she still has outstanding debt at the time of application. We don't want to be applying for a loan, to be turned down and for it to affect her surprisingly good score.

The reason we're looking at a loan, is there will then be an end in sight, as opposed to the DMP which has over 20 years to run. We both wanted to avoid an IVA too.

Any help would be greatly appreciated.

DCFC79

jimbocrow wrote: »

My partner and I are both trying to make full and final settlement on our DMP, as we have a bit of cash from a house sale. However, we don't have enough for both of us to be clear. As a result, my other half is considering taking a loan out. Moat of her debt is over 6 years old, so through experian her rating is 954, so excellant.

Can anyone recommend a bank who might accept her application? I know she has a good credit score, but she still has outstanding debt at the time of application. We don't want to be applying for a loan, to be turned down and for it to affect her surprisingly good score.

The reason we're looking at a loan, is there will then be an end in sight, as opposed to the DMP which has over 20 years to run. We both wanted to avoid an IVA too.

Any help would be greatly appreciated.

Whether you can get a loan is all dependant on salary, other loans, debt on CC's etc

Oh and the number 954 is worthless.

Apples2

Shows just how worthless your credit score is.

It is impossible to have a good, let alone excellent credit file whilst on a DMP.

Borrowing you way out of a DMP is kind of ridiculous, you can't pay the loans you already have but expect a lender to give you even more!?

Clear what you can, many are likely to accept a reduced sum as full and final but agree it in writing first.

If a company are handling your DMP, let them know. If they are a fee paying company,you should have sacked them already.

MEM62

Borrowing to pay debt doesn't leave you in any less debt so I fail to see how you would be better off. If you can clear yours then perhaps the better option might be to do that and then use the additional financial resources you have freed up to pay off your partner's debt quicker.

SnowTiger

Apples2 wrote: »

It is impossible to have a good, let alone excellent credit file whilst on a DMP.

Yep, sounds crazy, but I guess that in this case the debts are no longer being reported to the CRAs. Well, at least not to Experian.

So, OP's partner might be able to get a loan elsewhere, providing she's not asked about outstanding debt.

I'm not sure if she'd save any money in the long run. Presumably, at the moment, she isn't paying interest on her debt. She would obviously pay interest on a new loan. It's questionable whether a lower F&F would be cheaper than the interest on a new loan. OP mentions the DMP is a twenty year journey, so the debt is probably quite high.

Of course one big stumbling block will be the purpose of loan question that's likely to appear on the application form. F&F offers for DMP would probably raise a few eyebrows.

jimbocrow

Thanks for all the replies.

To the people who question borrowing to clear debt, I thought that was answered in the OP? 20 years is a long , in a DMP, a 5 year loan is far shorter, so light at the end of the tunnel. Repayments are affordable.

Amyway, from the research ive done, and the good relationship we have with our bank leads me to believe it is possible. If we're asked why we want the money, i wont lue. Its for debt consolidation.

jimbocrow

Apologies about the typos!

JuicyJesus

jimbocrow wrote: »

Thanks for all the replies.

To the people who question borrowing to clear debt, I thought that was answered in the OP? 20 years is a long , in a DMP, a 5 year loan is far shorter, so light at the end of the tunnel. Repayments are affordable.

Amyway, from the research ive done, and the good relationship we have with our bank leads me to believe it is possible. If we're asked why we want the money, i wont lue. Its for debt consolidation.

All you can do is apply then and see if they say yes or no. We can't tell you that.

jimbocrow

Just after other peoples experiences in similar circumstances, and with which lenders......not a yes or no answer on here. Not going to go round lenders, hoping we'll pass, and leaving markers on our file. Nothing wrong with a bit of research.

pjread

Personally though, the damage is already done and right now I assume no interest is accruing. Surely even without talking about full and final offers, you could bump up payment amounts to the current creditors to get rid of the debts at nil interest.

If you've anything 'dodgy' visible and borrowing under £10k I guess you're talking about 15%+ interest rates over 5 years, which isn't too far off every £1 borrowed costing close to £2 over the course of 5-6 years repaying a loan. So although you might feel warm and fluffy at best you're going to break even on 50% full and final offers.

I'd even say just save these "affordable" payments to make some offers in a few months is more likely to work in your favour and put the light a lot closer to where you are in that tunnel you speak of...

Just my opinion, and if you really can get them all to agree 10-25% F&F offers and borrow the cash at 5% then ignore me.

DCFC79

jimbocrow wrote: »

Just after other peoples experiences in similar circumstances, and with which lenders......not a yes or no answer on here. Not going to go round lenders, hoping we'll pass, and leaving markers on our file. Nothing wrong with a bit of research.

Other people could have been in similar position but with less debt owing so had a better chance as were seen as a safe option.