Credit History

lizabel

Hi, I`m a newbie, so patience please. I am worried about the effect of my credit history as I need to borrow to help to buy a home. Not a mortgage-£20,000 loan. Problem, at 63, I`ve only borrowed and paid back £3,000. I feel by being wise with money I am being penalised because I have never run up debt and paid it off. I received a quote from one of the peer to peer groups and I feel the APR is too high. I am disappointed but any tales of sorting out this type of `credit history` problem would be appreciated.

[Deleted User]

£20k is a big ask, even for someone with a strong credit history and a decent income.

You can understand why banks would be nervous about lending such a large sum to someone who can't show much proof of being able to repay loans.

You're not being penalised. After all if you were in hospital, you'd probably want a doctor who could demonstrate they'd done a bit of surgery before. It's the same principle.

What's the APR you've been offered?

imoneyop

lizabel wrote: »

Hi, I`m a newbie, so patience please. I am worried about the effect of my credit history as I need to borrow to help to buy a home. Not a mortgage-£20,000 loan. Problem, at 63, I`ve only borrowed and paid back £3,000. I feel by being wise with money I am being penalised because I have never run up debt and paid it off. I received a quote from one of the peer to peer groups and I feel the APR is too high. I am disappointed but any tales of sorting out this type of `credit history` problem would be appreciated.

Are you saying you are borrowing for a deposit on a house? Where is the rest of the money coming from? If it is a mortgage then prepare for any offer you have had to be withdrawn when the lender finds out that you don't actually have a deposit and are borrowing it.

Unfortunately, lenders like to know that borrowers are likely to pay back what they are borrowing and the only way they can do that is by looking at your credit history - no history and you get a higher APR (or declined). If you feel the APR is too high then look elsewhere, but the more searches you have on your history the more desparate you are going to look and the worse the rates offered will get.