Bad Credit Loans?

hobhobuk

So there are masses and messes of 'credit broker' websites which say they can help get you a loan, etc, but infact pretty much just charger you £70 and sell your information to hundreds of other companies which are doing the exact same thing... but my question is, other than wonga etc, are there any loan providers which are actually for people looking to rebuild their credit history or for those which already have bad credit?


Thanks!

Caz3121

hobhobuk wrote: »

but my question is, other than wonga etc, are there any loan providers which are actually for people looking to rebuild their credit history or for those which already have bad credit?

Many posts on here state that PDL companies such as Wonga have a detrimental effect on your credit file.
Are you looking for a loan or are you looking to work on improving your credit file?
If the latter you could look at a credit card where you would pay off the entire amount each month

maginot

Rebuilding your credit rating takes time.

It takes 6 years for defaults and CCJs to fall off your credit report, so hard to get prime lenders to give loans before this time (possibly if 4/5 years passed).

To start rebuilding maybe consider asking your own bank if you have had no issues with them for 12 months or consider a capital one card that who give credit cards for lower credit to customers (although have higher interest rates). If you pay this off in full you will have no interest to pay and will help rebuild your credit rating.

You could also try using mobile phone contracts etc that can help your credit rating (but ensure a dd is set up and this is paid).

All of these will help your credit rating and eventually you will have access to prime credit again.

However if you are looking for a loan for a purchase/pay bills/consolidate, this is unlikely to happen with bad credit.

hobhobuk

I was just curious on what loan options there were for bad credit.

I mean bad credit as in, having missed payments in the past or having past debt. Never having a default or a CCJ etc though, so maybe bad was a bit of a strong word to use in regards to the description.. haha.

I guess yeah, it would have been more of a consolidating debt loan, rather than purchasing things or paying upcoming bills.

Thanks for the info!

dealer_wins

The best way to rebuild bad credit (Whilst waiting 6 years for the defaults to drop off your credit report) would be to start saving 10% of your net income each month.

Then in 6 years time you can stick two fingers up at loan companies and their expensive products for ever!!

maginot

So not looking to rebuild you credit you want to damage it further by taking out more debt. If you only have 1 or 2 missed payments and these are 6/12 months old it shouldn't have too much impact on your credit rating.

However Consolidating rarely works as people generally run up credit cards etc again.

Post up an SOA and people may be able to help were you can cut back. Try snowballing your debt and pay off the most expensive first. But more debt doesn't solve debt, just builds up more long term problems .

hobhobuk

It's mainly debt built up from being a student, and making foolish decisions. Part of it is just a overdraft which I just have in the minus left, no issues with it, other debts are past student credit cards which have then been sold onto debt companies. I wondered if I could get a loan to pay them all off in one and then just pay that loan back? But obviously due to having this past debt I doubt I could?

The debt is not really a issue either, its all from about 4/5 years ago and none of the companies have done much, minus send the odd letter, but nothing with any information on really, maybe because I have moved house so many times in the last 5 years.

So I guess the best bet is to either just leave it, save 10% each month for now, and then pay the bigger ones off when I'm ready? And in the meantime avoid any other debts and obviously continue regularly repaying my phone etc

27col

hobhobuk wrote: »

It's mainly debt built up from being a student, and making foolish decisions. Part of it is just a overdraft which I just have in the minus left, no issues with it, other debts are past student credit cards which have then been sold onto debt companies. I wondered if I could get a loan to pay them all off in one and then just pay that loan back? But obviously due to having this past debt I doubt I could?

The debt is not really a issue either, its all from about 4/5 years ago and none of the companies have done much, minus send the odd letter, but nothing with any information on really, maybe because I have moved house so many times in the last 5 years.

So I guess the best bet is to either just leave it, save 10% each month for now, and then pay the bigger ones off when I'm ready? And in the meantime avoid any other debts and obviously continue regularly repaying my phone etc

Yep!. That just about sums it up.

Vikipollard

hobhobuk wrote: »

I mean bad credit as in, having missed payments in the past or having past debt. Never having a default or a CCJ etc though, so maybe bad was a bit of a strong word to use in regards to the description.. haha.

(Apologies, I don't know how to multi-quote, so the below is copy/pasted)


"It's mainly debt built up from being a student, and making foolish decisions. Part of it is just a overdraft which I just have in the minus left, no issues with it, other debts are past student credit cards which have then been sold onto debt companies. I wondered if I could get a loan to pay them all off in one and then just pay that loan back? But obviously due to having this past debt I doubt I could?

The debt is not really a issue either, its all from about 4/5 years ago and none of the companies have done much, minus send the odd letter, but nothing with any information on really, maybe because I have moved house so many times in the last 5 years."


If you've moved round a lot, how do you know you don't have CCJs or defaults? Have you checked your credit reports? The standard one costs £2 and Noddle is free.


If your debt is with DCAs, it suggest more than the odd missed payment.

poppasmurf_bewdley

The two largest companies that did loans for people with bad credit were Welcome Finance and Yes Car Credit.

Both have gone out of business. The first because people they lent money to didn't pay it back. The second because they were effectively stopped from selling high cost PPI and other insurances which were where their profits came from because the loans, even at very high interest rates, to people with bad credit didn't pay.

As far as I am aware, nobody has replaced them. There are other companies which will attempt to sell you a Guarantor Loan, which lands your guarantor in the fertilizer if the one who wants the loan doesn't pay.

As others have said, the only way is to wait until all your old defaults, missed payments, etc, have left your credit file and then start rebuilding.

It takes several years, but it something that myself and lots of others on here have done in the past.