I have one 'bad' debt - why is my credit so bad?

Garethw87

Hello All

Been reading on here whenever I've needed to and most other times just out of interest to other peoples problems and victories! :T

I have two simple questions if somebody better educated in this debt and credit field could help...

1. I have one 'bad' debt. It is owed to Marlin and the balance as of last month is only £1137! This is an old bank loan from Yorkshire bank I taken out in 2009... We had our disagreements over PPI and charges. Anyway the debt was passed to Marlin and I agreed to pay them X per month... which I have been doing but my credit file shows a default every single month on the payment? Is that correct? If so how would I get rid of it just pay it off and it's ok?

2. My girlfriend has NO debt, no credit cards/store cards/loans nothing at all. Just her mobile phone and car on finance yet she can never get accepted for anything! Which is ultimately a good thing but why is this?

So with my total debt of £1137 I struggled to get an actual bank account and I can never, never get accepted for a small £2000 loan from my bank to pay off that damned Marlin debt. Why does such a small amount owing cause me so many problems? My score on Noddle says im 1/5 and will have trouble - I do! I'm wanting to move out this year but I feel like the estate agents (if they actually do their credit checks) will say no thanks and it's money wasted.

Thanks in advance for any info!

forgotmyname

Your default is on there for 6 years from the original date. Pay it off or not its there for 6 years from the date. Although a satisfied mark may improve matters.

To get credit they prefer you to be stable and on the electoral roll. Move addresses a lot or change jobs weekly and they see you as a higher risk.

1/5 means nothing. Bit like asking the cleaning lady if your cars clutch is worn. The company that scored you 1/5 dont lend money and dont use the same criteria that the genuine lenders do.

Having zero credit or debt wont show lenders than you can borrow and use credit sensibly. Having one credit card and using it monthly and paying it off in full every month will show that you can manage your funds.

Thrugelmir

How much of the debt are you repaying every month?

CLAPTON

as far as your girl friend is concerned


-is she on the electoral roll?
-a car on finance is actually a debt : how much is it?
-what does she earn?
-what do all her three credit reports show?


subject the answers to the questions, her best bet is to get a CC and use is regularly for things she buys anyway (petrol maybe), then pay in full each and every month.
Her own bank would be a good staring point.

Garethw87

That was quick! Thanks guys.. so I'll try answer..

I pay Marlin £15 the original to Yorkshire Bank was £47 per month. But how do I get them to stop defaulting me? If I call and ask how much they actually want per month would that make them put an OK rather then default? Let's say they said £50 per month?

I need to get on the elec roll then as it says I'm not!.

I dont move much. 3 addresses in 27 years and haven't had soo many jobs plus the one I got is ok/manager level.

As for my girlfriend the car is from a dealership and is around £4k she earns a little bit better than the min wage. I guess getting a CC and being sensible would help then. I do this too with a 'bad credit' card.

Thrugelmir

Garethw87 wrote: »

T
I pay Marlin £15 the original to Yorkshire Bank was £47 per month.

If you are only repaying £15 a month. At £180 per annum going to take some years to repay what you already owe. Why do you think any lender will be willing to advance you a further loan of £2k? To rebuild your profile you need to be serious about repaying your debts otherwise you won't be taken seriously as a potentially borrower.

CLAPTON

Garethw87 wrote: »

That was quick! Thanks guys.. so I'll try answer..

I pay Marlin £15 the original to Yorkshire Bank was £47 per month. But how do I get them to stop defaulting me? If I call and ask how much they actually want per month would that make them put an OK rather then default? Let's say they said £50 per month?

I need to get on the elec roll then as it says I'm not!.

I dont move much. 3 addresses in 27 years and haven't had soo many jobs plus the one I got is ok/manager level.

As for my girlfriend the car is from a dealership and is around £4k she earns a little bit better than the min wage. I guess getting a CC and being sensible would help then. I do this too with a 'bad credit' card.

your credit files, in BIG letters, say that you can't afford to pay your current debts
obviously people are reluctant to lend to some-one who can't pay even there current debts
a default is not paying your debts according to the original contract : clearly you are correctly defaulted.

go over to the debt free wannabe board and learn to budget and reduce your spending until you are totally debt free (then learn to save for things you want)

Hazzinho

FYI once you default on an account it stays in default and remains 6 years from the original default date on your credit file. Your girlfriend will need starter credit as she has none and needs to prove she can manage it. Get your £2 reports with Experian and Equifax in addition to Noddle. As others have said make sure you're both listed on the electoral roll at your current address.

Garethw87

Thrugelmir wrote: »

If you are only repaying £15 a month. At £180 per annum going to take some years to repay what you already owe. Why do you think any lender will be willing to advance you a further loan of £2k? To rebuild your profile you need to be serious about repaying your debts otherwise you won't be taken seriously as a potentially borrower.

That makes sense. The original £10 was because having crappy jobs and no money left and being young and stupid. Now I have more money available so I am going to up the payment from next month to £100 per month to get it settle by the end of the year.

Will they still default every £100 payment till it's cleared? I've emailed them about it too, just curious.

Garethw87

Hazzinho wrote: »

FYI once you default on an account it stays in default and remains 6 years from the original default date on your credit file. Your girlfriend will need starter credit as she has none and needs to prove she can manage it. Get your £2 reports with Experian and Equifax in addition to Noddle. As others have said make sure you're both listed on the electoral roll at your current address.

What does a paper credit report display differently from say Noddle? Do they all hold different information or will it be the same? I'll get them anyway, doesn't hurt to see what they know!

mashedavocado

Garethw87 wrote: »

Will they still default every £100 payment till it's cleared? I've emailed them about it too, just curious.

Yes. Once an account has been marked as default, it stays that way.