mistake crippling hubbys credit

shep2302

hi we are trying this year to clear debts and put in to buy our housing association house. i have just signed up to clearscore to see what is happening as my husband is the main earner but cant get credit we have a loan with barclays it was a car but it showed as a loan not car finance we needed to drop our payments a couple of years ago so have been on a payment plan which is a lower amount but has not been missed and is paid every month it is showing on the credit report as none payment every month for last 2 years this is the only thing that seems to be doing damage i dont understand does it go down on your credit report as a non payment even tho your paying just a less amount?

MuddyFunster

Hi,


Irrespective of what the loan was for, if it was sold as a personal loan it will show as one on a CRA - although it probably won't make much difference.


In regards to the missing payments - does it show as being in default, or just no payments?
Either way, the account should show with an "arrangement" marker - it might have different terminology, when I was an underwriter with RBS I only used Experian which used "arrangement".

Anyway, it's effect on your Husbands credit worthiness will differ from lender to lender - when I was an underwriter (pre 2008 crash which is a different world in the finance ind) I wouldn't see an arrangement as a bad thing per-se, circumstances change and the unforeseen happens - better to deal with your circumstances head on than bury your head and clatter into missed payments or default before you deal with it.



THAT SAID, this is only my personal opinion, but one formed by policies that were laid out by senior underwriters - whilst we wouldn't turn someone down based on an "arrangement" marker - we wouldn't lend to anyone who was still in one, or had been in the last 6 months as in effect they're telling that creditor that something unforeseen has happened and asked for some understanding, which is the prudent, responsible thing to do - however we would expect them to bring those payments back up to their normal level before taking on any new credit.



In your position my first response would be to ask your Husband to contact Barclays to ask them the status of the loan, then explain the situation with missing payments, also ask for the end date of the loan based on current payments - they may have dropped you to a interest only rate meaning a never ending situation.

Thrugelmir

shep2302 wrote: »

we have a loan with barclays it was a car but it showed as a loan not car finance

When borrowing money it is always a loan irrespective of the purpose. A mortgage is a type of loan .

David_White

I'm afraid even though you've agreed the arrangement to pay with the lender because you are paying less than the original agreed payment it will have a significant impact on your Husband's credit profile.

The only way of potentially avoiding that would have been to refinance the whole loan over a longer term thus reducing payments.

shep2302

thanks for replies its not showing any arrangement or default just non payment this is what we are working toward paying off this year as there is still 4000 left on it we would really like to buy our house on the right to buy but as im at home as we have a disabled daughter the mortgage would go off his earnings we have no chance as it stands at moment

David_White

It'd come down to the finer detail, however there would still potentially be lenders available to you... albeit with very high interest rates.