Seeking alternatives to a guarantor loan.

Knitworthy

Thank you for you response Tixy. The original debt was acquired in 2003 and the debt repayment plan was started in 2005. This is when the defaults start from on my file, I'm not fully understanding the process for getting things written off but as I have been in touch and making payments throughout this time I did not think this was an option that was open to me. Also I feel a huge moral obligation to make a full repayment for the money that I borrowed.

Knitworthy

Thank you for the quick reply Tixy. My credit file currently shows the older debts as being paid off and the dates of their completion. It shows the two outstanding ones as being in default, although they show payments have been made towards the outstanding balance.

The suggested guarantor loan would be for a period of 2 years, maximum. I am aware that the APR is very high. What I and my guarantor need to consider is, is this a price worth paying in order to begin some repair towards my credit rating. If this arrangement will not make any impact then I could not ask my guarantor to go ahead and I'll just continue with my repayment, although at an increased amount.

CLAPTON

Knitworthy wrote: »

Thank you for you response Tixy. The original debt was acquired in 2003 and the debt repayment plan was started in 2005. This is when the defaults start from on my file, I'm not fully understanding the process for getting things written off but as I have been in touch and making payments throughout this time I did not think this was an option that was open to me. Also I feel a huge moral obligation to make a full repayment for the money that I borrowed.

your credit files won't improve until these debts are cleared

guarantor loans are total madness ; if your relative is willing to help then they should get a loan in their name and you pay them.

once the loans are clear time will improve your own credit rating

Knitworthy

BonkersBonkers wrote: »

Have you got any savings?

Apologies, I did not reply to this question. I have no savings, 100% of my disposable income has been given over to debt repayment.

Knitworthy

CLAPTON wrote: »

once the loans are clear time will improve your own credit rating

Is there anything that I would be able to do to actively improve my rating? I had hoped that it would improve with the repayment of the other debts, it was very disheartening to see that the other repayments have no impact so far.

CLAPTON

Knitworthy wrote: »

Is there anything that I would be able to do to actively improve my rating? I had hoped that it would improve with the repayment of the other debts, it was very disheartening to see that the other repayments have no impact so far.

whilst your credit file show you still in default your credit rating will be poor

basically it is saying you can't afford to pay your current debts: so why would any other lender want to lend you money?

if your relative is willing to take out a loan in their own name then that would give you the opportunity to pay off the debts and have them marked settled.

Tixy

Knitworthy wrote: »

Thank you for you response Tixy. The original debt was acquired in 2003 and the debt repayment plan was started in 2005. This is when the defaults start from on my file, I'm not fully understanding the process for getting things written off but as I have been in touch and making payments throughout this time I did not think this was an option that was open to me. Also I feel a huge moral obligation to make a full repayment for the money that I borrowed.

Acquired in 2003 - do you mean that is when the debt collector bought the debt from the original creditor (or do you mean that is when you incurred the debt)?

I wasn't referring to your debts being written off - but to when they will automatically drop off your credit file.

A - These 2 outstanding debts - when did you first stop paying them or get behind with repayments?
B - What is the default date for each of these 2 debts as shown on your credit files?

Knitworthy

CLAPTON wrote: »

whilst your credit file show you still in default your credit rating will be poor

basically it is saying you can't afford to pay your current debts: so why would any other lender want to lend you money?

Thank you for your reply. I would say that I can afford to repay my debts, and have been repaying for some time. I agree that I'm not repaying at the original amount but I have never missed a payment. I can afford to increase the amount of repayment, what I am investigating is the possibilty of moving the debt elsewhere and continuing to repay.

However I appreciate that intent and commitment are not easily communicated via a credit file, and that any potential lender will see things in stark black and white terms as you have described.

Knitworthy

Tixy wrote: »

Acquired in 2003 - do you mean that is when the debt collector bought the debt from the original creditor (or do you mean that is when you incurred the debt)?

I wasn't referring to your debts being written off - but to when they will automatically drop off your credit file.

A - These 2 outstanding debts - when did you first stop paying them or get behind with repayments?
B - What is the default date for each of these 2 debts as shown on your credit files?

2003 is the date when I incurred the debt from the original creditor.
2005 is when I was unable to repay at the original agreed amounts and began my repayment plan.
2008 is the default date showing on the credit file. The file shows the original default balance, and the current balance which is greatly reduced but sadly not there yet.

Tixy

Knitworthy wrote: »

2003 is the date when I incurred the debt from the original creditor.
2005 is when I was unable to repay at the original agreed amounts and began my repayment plan.
2008 is the default date showing on the credit file. The file shows the original default balance, and the current balance which is greatly reduced but sadly not there yet.

Ok.

You should have a good case to argue that the default dates on your credit file are incorrect and unfair.
The ICO guidance on filing defaults states that a default should usually be entered within 6months of the debtor falling in to arrears/ceasing payments.

The usual process is to write to whoever is reporting the entry to your credit file now (presumably a debt collector) to state that the default date is unfair and is not representative of the history on the account.

If they the correct and backdate the defaults to 2005/2006 then the whole entry in relation to that debt (including the default/the current balance etc) will no longer appear on your credit file at all. You would still need to repay the debts, but your credit file will look much better.

The same may be true of any debts that are already fully paid - if the default date is later than what is fair you may have a case to get it backdated.

Some info here - ICO Guidance - Filing defaults with credit reference agencies
(section 11 is one useful part)