Declined for OD with Lloyds - Rebuilding Credit or Trying

mistertml

Hi all

As some of you are aware I am on a DMP and owe £12k which I am hoping to clear in the next 4-6 years depending on how much I can over pay by each month.

I am trying to rebuild by credit score and have the following issues:

5 defaults ending between 2015-18
Hfx - Idem - £4900
Barc - £2500
Vanq - £1100
Marlin - £1500
1 default has had balance paid last week.
Cap - paid
2 accounts with AP which I am trying to get the creditors to default.
Next - £1400
Barclaycard - £200

Also waiting on CCA on all apart from Marlin as this was for a O/D with Hfx

I tried to apply for a OD with Lloyds TSB whom I have been with for 5 years now and they referred me to call customer services and then declined me without asking any further questions. I don't need the OD as have some money saved for emergencies (£1k)


I tried to explain to the advisor that the reason why I wanted a £50 OD with them was to improve my credit score and nothing else and was wondering if he could advise me or point me in the right direction. All he seemed to be interested in was to get me into the branch to speak to a "helping hands" advisor and then take it from there.

Please can anyone advise on whether I should make the appointment or is this a waste of time?

Any other help and advice on how to rebuild my credit would be of great help.

Thanks

TML

Lioness_Twinkletoes

I'm not sure you should be borrowing money in the form of an overdraft while in a DMP - especially if one of your defaults is an overdraft!!

Concentrate on paying what you currently owe and worry about improving your credit rating once that is done.

thebritishbloke

You shouldn't be taking on anymore credit whilst on a DMP. If you do dip into the overdraft and pay it off straight away, it can be seen as unfair to the other lenders and they may choose to revoke your AP.

MABLE

mistertml wrote: »

Hi all

As some of you are aware I am on a DMP and owe £12k which I am hoping to clear in the next 4-6 years depending on how much I can over pay by each month.

I am trying to rebuild by credit score and have the following issues:

5 defaults ending between 2015-18
Hfx - Idem - £4900
Barc - £2500
Vanq - £1100
Marlin - £1500
1 default has had balance paid last week.
Cap - paid
2 accounts with AP which I am trying to get the creditors to default.
Next - £1400
Barclaycard - £200

Also waiting on CCA on all apart from Marlin as this was for a O/D with Hfx

I tried to apply for a OD with Lloyds TSB whom I have been with for 5 years now and they referred me to call customer services and then declined me without asking any further questions. I don't need the OD as have some money saved for emergencies (£1k)


I tried to explain to the advisor that the reason why I wanted a £50 OD with them was to improve my credit score and nothing else and was wondering if he could advise me or point me in the right direction. All he seemed to be interested in was to get me into the branch to speak to a "helping hands" advisor and then take it from there.

Please can anyone advise on whether I should make the appointment or is this a waste of time?

Any other help and advice on how to rebuild my credit would be of great help.

Thanks

TML

Did you know that Halifax are also part of the Lloyds Bank group and if you have defaulted with them thats probably another reason you were declined.

Thrugelmir

mistertml wrote: »

I tried to explain to the advisor that the reason why I wanted a £50 OD with them was to improve my credit score and nothing else

Then you are barking up the wrong tree. Sort your existing issues out first. Obtaining credit does not improve your credit score.

mistertml

Hi

Thanks for the advice.

Any particular order i should pay them off in?

And should I am to settle the full amount owed or partial offers?

Thanks

Sinhanada

It is always better to pay the full amount - a partial offer will reflect that on your credit file. If you are able to pay more then pay any of the creditors that are still charging interest if any - if not, pay the people arranging your DMP the extra and they will distribute it.

And hopefully you take the advice of not seeking any additional credit. It will invalidate your DMP if any of the other creditors find out. The people arranging your DMP may also remove you from it too

mistertml

Hi

I am doing my own DMP at present.

All the interest has been frozen. The default dates and amount outstanding varies from £200-£5000.

Should I tackle the smallest ones first?


Thanks Again

thebritishbloke

If you've informed the lenders that you're in a DMP with all of your other debts, you should pay them all off fairly. So if you have £1000 to pay towards 5 debts, you should pay them £200 each (or however much you owe them if it's less than £200).

mistertml

thebritishbloke wrote: »

If you've informed the lenders that you're in a DMP with all of your other debts, you should pay them all off fairly. So if you have £1000 to pay towards 5 debts, you should pay them £200 each (or however much you owe them if it's less than £200).

Hi

Thanks

I was hoping to pay off one at a time in full. As I have committed to pay £150.00 each month but do have some spare cash some months so don't want to commit to say £300.00 per month as it wont always be the case.

thanks

glentoran99

thebritishbloke wrote: »

If you've informed the lenders that you're in a DMP with all of your other debts, you should pay them all off fairly. So if you have £1000 to pay towards 5 debts, you should pay them £200 each (or however much you owe them if it's less than £200).

surely its should be pro rata? person you owe the most to gets the biggest slice? to be "fairly"?