Defaulted with a lender and re-applied later?

sleepyjones

Just thinking out loud (probably not relevant here if the debts been sold on)  ...
Could they not, theoretically, give a person a card with a £1000 balance and immediately use that balance to pay off the debt on the old card, so technically they can start charging interest again ... and then drop the limit down as it's paid off?
I'm sure the banks can take money out of your bank account (without "permission") if you owe them money?

jones_guitar

I think after 6 years, you can reapply. As the record (on their end also), is disposed of.

[Deleted User]

cjonesguitar said:

I think after 6 years, you can reapply. As the record (on their end also), is disposed of.

That isn't true - lenders are ok to keep records for as long as they see fit, as long as there is a business reason for it. Not lending to previous defaulters is a good business reason.

jones_guitar

Sorry you were ill Mrs_Ryan.

I had credit limits (approx): Sainsburys - 7k, Virgin - 5k, Natwest - 4k, Capital One - 1.5k, MBNA - 0.9k. I believe that there was also a Nationwide card. I am willing to bet you can rebuild them all up to healthy credit limits again. I actually really liked having them all with no balances on. I was really proud of my ability to transfer credit from one to another and build them up. However, it didn't end well in 2016!

Currently I have: AQUA - £2.15k, Vanquis - £0.25k, 118118 - 0.25k.

[Deleted User]

Everyone's case is different due to salary etc, but mine worked out surprisingly well. I defaulted on quite a few due to Bankruptcy back in early 2014. Capital One and Aqua 100% lost money. I'm pretty sure I used to have a Vanquis too.

Got a capital one card soon after I was discharged in 2015, £1k at first (higher than the £500 I defaulted on!) which then grew to £4k (despite Bankruptcy and their own negative data still being on my file). Aqua are playing silly, but I was accepted on £900 and did have £2k with them for well over a year (cut down to £400 above a year ago). Vanquis I've also got £4k (started on £1k 18 months after discharge).

Barclaycard are highly unlikely to accept someone with bankruptcy within 6 years - so I'm not sure if they'll actually accept me once the adverse drops off, or not. One of my apps I did to them a while back got declined for "poor conduct on existing account" or something along those lines, so they still have my defaulted account on the system.

With a prime lender I'd think it's unlikely for 6 years (due to low score and/or internal data). I know some lenders operate 7 year retention cycles, so 7 years could well be the cut-off.

But with sub-prime after a few years you should be fine. Amex is super-prime (although they did trial a near-prime card for a while!) so like somebody else said, zero chance with them if you've defaulted with them.

jjames1985

sleepyjones said:

Just thinking out loud (probably not relevant here if the debts been sold on)  ...
Could they not, theoretically, give a person a card with a £1000 balance and immediately use that balance to pay off the debt on the old card, so technically they can start charging interest again ... and then drop the limit down as it's paid off?
I'm sure the banks can take money out of your bank account (without "permission") if you owe them money?

the right of set off only applies to credit balances.