Need Help - Poor Credit Rating.

Chillerhippie

hello everyone, I'm in a spot of bother with my finances.
Earlier this year I was in a job getting about twice as much as I earn now and because at the time I thought the job was "safe" I went on a mad spending spree. unfortunately, I was made redundant and was left with car finance, car insurance and a credit card to pay for.
Its been about 6-8 months now and after cutting back in every way I can I'm still getting further and further away from been in Credit with my bank.
I've attempted getting a loan from them twice but each time I have been refused, I have also tried other places but im not getting any thumbs up.
I have no idea why my credit rating has gone down, since I was able to get the car etc etc before, and have never missed a payment.

I need some advice.

I currently owe about £1400 to my bank, £8500 on my car (which can be lowered to £5000 if i pay now. I also owe about £500 on the insurence too.

cat4772

Chiller

Welcome to MSE:D.

Before we can offer advice we'll need to see your statement of affairs (see MSE Andreas sticky on page 1 and read the bit for first time posters by Southernscouser). We'll need to know your income (plus any benefits) and all outgoings, APRs on debts etc. Check out the budget planner because we'll ask about birthdays, holidays, sky, mobiles etc if you don't put them down. You should be able to find APRs on statements or by phoning the relevant people.

check out whatsthecost.com to see your debt free date (and play around with payment schedules to see how overpaying will reduce the debts).

Make yourself a cuppa, post your SOA and then sit back whilst we pick it apart, offering guidance etc.

Cat.x

Conor_3

Chillerhippie wrote: »

hello everyone, I'm in a spot of bother with my finances.
Earlier this year I was in a job getting about twice as much as I earn now and because at the time I thought the job was "safe" I went on a mad spending spree. unfortunately, I was made redundant and was left with car finance, car insurance and a credit card to pay for.
Its been about 6-8 months now and after cutting back in every way I can I'm still getting further and further away from been in Credit with my bank.
I've attempted getting a loan from them twice but each time I have been refused, I have also tried other places but im not getting any thumbs up.
I have no idea why my credit rating has gone down, since I was able to get the car etc etc before, and have never missed a payment.

I need some advice.

I currently owe about £1400 to my bank, £8500 on my car (which can be lowered to £5000 if i pay now. I also owe about £500 on the insurence too.

You've been refused because:
a) Your overdraft is increasing.
b) Because of a) and the level of debt you have, it is obvious you can't afford any more.
c) Because of the sub-prime lending crisis, lenders are avoiding anyone who looks remotely dodgy.

Sea78

HI Welcome to the wonderful world of DFW.

Do take a look at the sticky thread for newbies and have a go at your SOA - we'll be able to help with any ideas for cutting back/raising extra income and hopefully together we'll find a good way of paying all back - it can and will be done!

Sea xx

Chillerhippie

hey guys thanks for the replys,
since my post ive had a look myself into my credit score thingy via Equifax and to be honnist, Im not as in the red as I thought! My Score is 357, it seems that the only bad mark against my score is from a mobile phone contract i had back in 2002-03 which I stopped paying for and it ended up getting defaulted. I paid it off in 2004 via a diffrent company but the mark is still there.
Since I dont have a Poor credit rating, I had another look at unsecured loans, managing to dig around for a good one. I found Yes loans, phoned them up and have managed to get a loan for £7500 at a rate I can afford.
It also means I can sell my car and get one a lot cheaper giving me a head start on the repayments

Sea78

HI - glad you have found one, but do still post your SOA up here so we can help out and perhaps ensure you don't run up any other debt? Worth posting eh?