Credit help

Siberianski

Long story made short

Me and my partner have debts between us of around 30000 which are on debt management plans. We have a mortgage which has arrears of 700pounds that we are gradually getting to grips with.

We live in a ex council house in not a nice arrear of Newcastle we are so eager too move but our credit ratings are knackered.

Do these credit builder pre paid credit cards actually work?

Is it worth taking out a few payday loans for small amounts too see if that boosts our scoring.


We have around 2500-3000 coming into our household each month but we just cant seem too get any new credit. I recently applied for a black diamond credit card and another that you have to pay a monthly fee for having that is not prepaid and I got knocked back on both.

Gerry87

As far as I'm aware, PDL's have a negative impact on your credit rating as future lenders look at these as though you are struggling financially. I was made bankrupt in 2013, discharged I may 2014 and already have been accepted for a Vanquis card with a limit of £500. I plan to only use for fuel and pay back in full each month to improve my report. You should also take a look at all of your credit reports, experian offer a 30 day free trial and noddle is completely free (don't be tempted by their products that charge a fee). You should look for any info that's incorrect and have these amended. I learned to do all this through this site.

Tixy

If you are on a debt management plans then it is almost always against the terms of the plans to take on any more credit until the debts are repaid.

Getting payday loans won't help your credit file and could cause some of your existing creditors to start charging interest again or stop accepting your DMP.

Credit builder prepaid cards will make very little difference to a credit file showing morgage arrears and presumably showing evidence of defaulting on the debts within the DMPs.

If you have mortgage arrears then it sounds like your DMP payments perhaps need renegotiating - who are you using for your DMPs? it is a free/charity DMP or a firm that is charging you a monthly fee?

Siberianski

The debt management plans are with cccs/stepchange so there are no fees, and the debt management plans at the moment are at the lowest possible amount to keep them going until the mortgage arrears are gone. Hopefully within 3 months we will be update with our mortgage again.

Then i think really the best thing too do is hammer all avaliable money into our dmp's so the debt on my credit file start showing as settled not default?

Yes i am with checkmyfile.com for my credit reports.