Do you think 6 years is fair?

HonmaDP

Hell of a long time as a mark against your financial standing tbh.

worried_jim

HonmaDP wrote: »

Hell of a long time as a mark against your financial standing tbh.

You won't spunk that loan again!

enthusiasticsaver

HonmaDP wrote: »

Hell of a long time as a mark against your financial standing tbh.

Yes, there has to be a disincentive to defaulting on borrowing and sometimes allowing people to borrow more when they cannot afford it is not doing them any favours.

sourcrates

Lets be honest, anyone can get into financial trouble, through no fault of there own, relationship breakdown, job loss, whatever it may be, been excluded from main stream credit products for 6 years, in my opinion, just leads to people turning to payday lenders, sub prime lenders, and companies such as brighthouse and the like.


Banks are always keen to lend when you dont need the money, but wont lend to you when you do, there is a sub culture that exists in this country where if you have bad credit, you just have to do the best you can, there must be a better way.

WhenIam64

been excluded from main stream credit products

As SC says you are excluded from main stream credit, but not all credit.

The 6 years simply reflects the legislation. Were it to change, then no doubt the industry would too as they would love to lend, lend and lend again. It's not their money.

So 6 years is there to protect us from the banks wish to splash the cash to anyone that asks.

Takmon

sourcrates wrote: »

Lets be honest, anyone can get into financial trouble, through no fault of there own, relationship breakdown, job loss, whatever it may be, been excluded from main stream credit products for 6 years, in my opinion, just leads to people turning to payday lenders, sub prime lenders, and companies such as brighthouse and the like.

Banks are always keen to lend when you dont need the money, but wont lend to you when you do, there is a sub culture that exists in this country where if you have bad credit, you just have to do the best you can, there must be a better way.

Most of the situation where people get into financial trouble is because they are already living close to the edge and have managed their budget poorly and have not got any plan for suddenly losing their job.

If the relationship with my partner ended or i lost my job i would not get into financial difficulty because i have properly managed my money. So i wouldn't say people who getting into financial difficulty can be considered not at fault.

Plus they would have to really mess up to be excluded from main stream lenders completely for 6 years.

Nannytone

If the impact was insignificant, then there would be no reason for anyone to learn to be fiscally Savvy.
They would just continually run up debt that they could walk away from.

The long-term impact would be that nobody would be able to obtain credit of any kind and the economy would grind to a halt.

I've always had a limited income and have kept away from debt. I consider myself to be both responsible and Savvy.
But that was when certain items were classed as luxuries and not necessities as they are now

DCFC79

HonmaDP wrote: »

Hell of a long time as a mark against your financial standing tbh.

Its a fair amount of time.

ferry

6 years tarnished credit files.. yep way too long. By about 3 years.
To be honest though I did find myself being offered and accepted for good APR's again after about 3 years of perfect recent history

boo_star

WhenIam64 wrote: »

As SC says you are excluded from main stream credit, but not all credit.

The 6 years simply reflects the legislation. Were it to change, then no doubt the industry would too as they would love to lend, lend and lend again. It's not their money.

So 6 years is there to protect us from the banks wish to splash the cash to anyone that asks.

There's nothing stopping banks ignoring adverse information past a certain point (say 3 years) right now. If they want to lend to people with poor credit they can. The "6 year rule" (which isn't actually part of legislation) is applied across every industry, it's not specifically aimed at financial institutions.

I strongly suspect that if the "6 year rule" became say an "8 year rule" that prime lenders like banks would refuse to lend for 8 years instead.

Willing2Learn

My credit files were in tatters for six years when I lost my job and ended up in hospital for a few months. I think six years is an appropriate timescale. If I had planned better, then I would not have defaulted on my accounts.