Loan.....old defaults?

Brussel_Sprout

Hello,

I'm looking into the possibility or not of being able to get a loan with defaults back in 2006.

All accounts are settled and were fully satisfied in 2011 after doing a management plan with Payplan and also directly with Natwest.

I earn £42k, am married, have no debts, other than a capiltal one, one card which I use as a credit rebuilder, limit is now £3k. And I have a £250 overdraft which I'm not in.

I also have an account with Next that I don't use but have a £500 limit on that?

Chances of me getting a loan? Probably quite slim but just thought I'd ask?!

Thanks,

BS :cool:

[Deleted User]

Well, you can probably get a loan but it's a question of at what rate. What exactly do your credit files show?

Brussel_Sprout

It shows that I had defaults, and that they are now all settled.
Is that what you mean?

The ratings are now excellent but I know that doesn't mean anything!

Apples2

If the default was registered in 2006 it shouldn't be on your credit file now.

Rosco32

What the default date and what's the settled date? As Apples2 has said defaults stay on file for 6 years from date of default.

Brussel_Sprout

I thought they stayed on for 6yrs from the date they are settled?

Default dates are June 2006. Accounts settled in November 2011.

I recently went to the bank and they refused a mortgage based on my past history, that's why I'm questioning this, would banks use the same process for a loan and for a mortgage?

fermi

Did they actually record defaults on your credit report? Have you checked?

Defaulted accounts should be removed from your credit report 6 years from the recorded default date. If they haven't, then you need to complain.

But did the bank actually say the refusal was because of information on your credit report?

Or did they ask you to declare previous defaults, and refused you on that basis?

Or is this the same bank, or a linked one, that you defaulted with, so that they may be checking their own records?

Brussel_Sprout

Yes the defaults are recorded as I entered into an arrangement to pay, I defaulted as I had to, or so Payplan told me. Anyway, the defaults were in 2006, I entered into the DMP, and that was all settled in November 2011.

The defaults are still visible on my file as I check it every month, I have a subscription with Equifax and Experian.

I was honest with the bank and was open about my past history, they refused the mortgage based 'on your past history and I didn't pass their credit check' my husband was on it too. They contested it with the underwriters and they felt the decision was harsh based on our current situation (joint income of £83k) but they still declined it.

The banks are not linked that we enquired with the mortgage, my husband has the mortgage solely, I'm not on it, it was to see if we could get a bigger mortgage based on both our incomes.

We want a loan to buy a new car and my husband doesn't want to take more debt out against his name, hence seeing if could get the loan, I just don't want to start applying and the marks on my file go against me in the future.

Whilst I realise I was irresponsible previously, life has changed, I paid everything off and I'm still getting penalised, part of me wishes I'd gone bankrupt, then I wouldn't have struggled for 5years paying it all back, and I'd be able to get credit!!

ch3101

Brussel_Sprout wrote: »

Yes the defaults are recorded as I entered into an arrangement to pay, I defaulted as I had to, or so Payplan told me. Anyway, the defaults were in 2006, I entered into the DMP, and that was all settled in November 2011.

The defaults are still visible on my file as I check it every month, I have a subscription with Equifax and Experian.

I was honest with the bank and was open about my past history, they refused the mortgage based 'on your past history and I didn't pass their credit check' my husband was on it too. They contested it with the underwriters and they felt the decision was harsh based on our current situation (joint income of £83k) but they still declined it.

The banks are not linked that we enquired with the mortgage, my husband has the mortgage solely, I'm not on it, it was to see if we could get a bigger mortgage based on both our incomes.

We want a loan to buy a new car and my husband doesn't want to take more debt out against his name, hence seeing if could get the loan, I just don't want to start applying and the marks on my file go against me in the future.

Whilst I realise I was irresponsible previously, life has changed, I paid everything off and I'm still getting penalised, part of me wishes I'd gone bankrupt, then I wouldn't have struggled for 5years paying it all back, and I'd be able to get credit!!

Surely having almost been bankrupt and spending years paying back your debt you'd steer clear of credit, why do you want to just jump back in to debt

fermi

In that case each account should show a "default date", and a single date recorded next to it.

Like:



I don't mean status updates showing an AP, 1, 2, 3 ,4 5, 6 etc. They are not defaults.

If there is a default date recorded, then the Credit Reference Agencies should have removed the accounts 6 years from that date.

If they haven't then you need to complain to them and make them remove the accounts from your report.

fermi

Brussel_Sprout wrote: »

Yes the defaults are recorded as I entered into an arrangement to pay,

An arrangement to pay is not a default as recorded on your credit file. It's an alternative to filing a default.