CCJ finally dropped off but still no hope of loan?

superbez

Hi. 6 years and 2 days ago we were issued a CCJ when we were in financial trouble when the kids were born. I have worked tirelessly to improve my credit rating make sure that every single bill or payment is made in full and on time for SIX years. After a few years I was allowed a loan and a credit card and have had to use payday loans (literally no choice to prevent defaulting on anything) which i've managed to stretch out until this week with the intention of getting a 'proper' loan from a high street name and paying off everything and having 1 simple, affordable monthly payment. My Experian score is now 865 which is way above the national average but after doing a 'soft search' for this loan the results are telling me I am not eligible. The 2 negatives (against the 8 positives!) are my credit utilisation is high and I went over the top of my credit card limit a few months ago (addressed immediately) I feel like walking into the sea right now, I'm praying that they are still playing catch up with the CCJ but feel if Experian have got it as done and dusted then the banks will too? I owe about 10k in total. Any advice would be appreciated. Thank you.

Additional info:

We rent in the south east of England (£1130pm for 3 bed property)
Joint income of £37000 per year (wife works part time)
Not inherited anything, ever.
This loan would save us over £200pm which we would be able to start saving away

[Deleted User]

Your credit score doesn't count for anything when applying for credit.

You're unlikely to get a further loan as you already have 10k to your name.

Visit the DFW boards and work on cutting costs and reducing your existing debt. In time, you may be able to lower it enough to gain further credit at a lower rate.

GothicStirling

Has the CCJ been paid in full? It won't drop off your credit rating until 6 years after it has been settled.

Rather than trying to consolidate your debts by taking out another debt, you would be better off talking to StepChange to come to an arrangement with your creditors.

Angry_Bear

Most high street lender will view payday loans very negatively - even if they've been paid of in full and on time. A CCJ is just one aspect of your credit report and from what you've said it sounds unlikely that you'll be able to get the high street loan you want (10k existing debt, payday loans, high-ish debt-income ratio).

As suggested above, your best bet is to visit the Debt Free Wannabe bits of the forums and work out what the quickest and cheapest way to pay off your debts is.

superbez

Hi and thanks for the responses. Yes the CCJ is paid and the 6 years are up so that's gone, thankfully. I honestly don't know how I am supposed to survive in this modern era, I balance the books hourly and then when there is a bit of light at the end I get denied. Oh well, it's the same for everyone I suppose. I'm going to have to contact the loan company and the card company (and the payday loan people) and confess that I will not be able to make the payments. Am I better doing this directly or is it better to look into StepChange? I've not heard of them before so any advice is welcome. Thank you all again!

superbez

I honestly believed that a company offering a debt consolidation loan would let me do just that. It seems I was very wrong

sourcrates

superbez wrote: »

I honestly believed that a company offering a debt consolidation loan would let me do just that. It seems I was very wrong

Hi,

Some serious eye opening going on here.

You should be so pleased that they would not grant you the consolidation loan, trust me on that one.

Pop over to the DFW board, we can help you out and show you your options for dealing with this, and there are many options.

Hope to see you there.

superbez

sourcrates wrote: »

Hi,

Some serious eye opening going on here.

You should be so pleased that they would not grant you the consolidation loan, trust me on that one.

Pop over to the DFW board, we can help you out and show you your options for dealing with this, and there are many options.

Hope to see you there.

I know you probably think I am crazy but the loan would have been at a more than affordable rate which I could realistically repay and be debt free in 5 years. Any loans or cards I have acquired over the last few years have come with high interest which I knew I could manage until the opportunity for that loan came around. Ok I'm gonna take your advice and head over to the DFW board, it looks a little intimidating, where should I start?

DCFC79

superbez wrote: »

I honestly believed that a company offering a debt consolidation loan would let me do just that. It seems I was very wrong

No companies offer debt consolidation loans, it might be an option on the application. Its just shifting debt from A to B.

superbez

DCFC79 wrote: »

No companies offer debt consolidation loans, it might be an option on the application. Its just shifting debt from A to B.

I thought the CCJ is what was preventing me from accessing a loan at the advertised rates so thought that once I had cleared that I would be able to consolidate any debt I had acquired with the higher interest with a lower monthly payment than I am currently paying. I accept I was perhaps short sighted and am extremely annoyed at myself for thinking this would ok. I have about 10 days before the monthly payments start coming out so I need to act fast. I am going to take a look at the DFW board next. Thanks.

PixelPound

superbez wrote: »

I thought the CCJ is what was preventing me from accessing a loan at the advertised rates so thought that once I had cleared that I would be able to consolidate any debt I had acquired with the higher interest with a lower monthly payment than I am currently paying. I accept I was perhaps short sighted and am extremely annoyed at myself for thinking this would ok. I have about 10 days before the monthly payments start coming out so I need to act fast. I am going to take a look at the DFW board next. Thanks.

Don't forget FREE debt advice from StepChange or similar (don't use any that charge a fee). As has been said no such thing as a debt consolidation loan, its a myth, just a marketing ploy to attract people in desperate situations. No harm in knowing all your options and best from those without a vested interest in earning money from you.