Genuine question of enquiry

dings

Hi all

Been around this site for a while, and asked a few bits and bobs once in a while, but having seen people outstanding debts in loans and cards, something came to mind.

I thought that you could only have debts up to £25k on cards and loans, and above that level people wouldn't lend to you. I guess that means 2 questions... 1) am I wrong thinking that, and 2) how did those with amounts above that manage to persuade lenders to lend to them?

Sorry if that seems really nosy, but I just wondered.

Dings

immoral_angeluk

To be honest it'd be very hard to control especially as your creditors may use different credit reference agencies.. so in theory you could have 25k listed with experian, another 25k with equifax etc...

Seaxwyn

hi Dings

I don't think there is a limit. As you can see from my signature, I was able to run up debts of over 40k on credit cards and loans and I've never lied or even had to try hard to get people to lend me money. I regularly get junk mail telling me I've been 'pre-approved' for loans and cards,and the cards I do have keep upping my limits unasked. Thank goodness I came to my senses as I could get into even more serious trouble.

There may be limits for different types of people. I have a mortgage and that seems to open the floodgates of people wanting to lend you ever more money.

Snaggles

I think this relates to loans up to £25k coming under CCA regulations - you can borrow more than this on a loan, but it wouldn't be CCA regulated. And you can have multiple debts that together total more than £25k, even if they are with the same lender, which are still CCA regulated because individually they are £25k or less.

I could be wrong though - pregnancy, birth and maternity leave have messed with my brain!

debtfree1day

well I got to £78k

although that included OD of nearly 10k, and hubbys cards of £12k

wish max had of been 25! but one loan from a high st bank was for £22k on its own

Seaxwyn

I have a loan that was for £25k, over 7 years. I walked into the bank and asked for it, within five minutes it was all signed and sorted. Even though OH and I already had big overdrafts and credit card debts, and no secure income.

As I signed the application form I was wondering how on earth I'd pay it every month.

We are lucky in that we have a lot of equity in our house (though we have a big mortgage too). When lenders hear about it they are just desperate to lend to us.

dings

Hi all

Interesting - hope you didn't think i was being too nosy.

But surely, once you got to a certain level, even when being successful in applying, your credit rating mustn't have shown up too well I guess.

Dings

Seaxwyn

Dings, I think your credit rating gets BETTER the more you owe. My neighbour has mortgages on over 20 houses. He owes literally millions. I'm sure his credit rating is better than most people's.