Will lenders you have defaulted with ever lend to you again?

FelicityMcD2003

Hi, my credit score is improving and previous defaults are no longer on my credit report (I think the answer to this question is probably yes but internet research hasn't provided any info.)  will any of the companies you have defaulted with lend to you again in the future or regardless of a good credit report will you be 'blacklisted'?

Apologies if any info re this is already on the thread, I did look but couldn't see it.

[Deleted User]

A few won't, such as Amex. Most will, but the timings vary.

MovingForwards

Ignore the credit score and rating as they are not seen or used by any UK financial institutions, it's the credit history they see and use as part of their lending process.

They may keep the 'bad' history a lot longer than they legally need too. 

I wouldn't ever try borrowing from a company I messed up with, but that's just me.

adamp87

I think those who offer cards without being a bank are more lenient in that sense, and the longer an accounts closed/defaulted the better.

But I’ve read on some forums actual Banks who offer cards/accounts keeping details for much much longer & preventing people opening with them.

I don’t think there’s any hard & fast rule though, will probably only find out via trial & error 

cymruchris

Deleted_User said:

A few won't, such as Amex. Most will, but the timings vary.

There's been anecdotal evidence that Amex more recently 'forget' history in the distant past, and there are cases of people obtaining cards that had previously defaulted. There's even posts here on MSE referring to people obtaining new accounts after bankruptcy. Amex were in my bankruptcy - and on my last eligibility check on the Amex site - I was up to 70% approved, which wasn't yet high enough for me to hit the 'apply' button, but that's up from 10% 6 months ago. If I was an auto-rejection - I'd imagine it would come back as 0% every time.

https://forums.moneysavingexpert.com/discussion/5955233/about-that-amex-blacklist/p1

In answer to the OP - time is a healer. I had a Barclaycard in my bankruptcy in 2013 - and got a new card from them in 2019. I also had a couple of accounts from MBNA/RBS who are all part of the Lloyds group along with Halifax. I've been turned down on all of their eligibility checkers for a couple of years - but this week got a 'Yes' from Lloyds - but didn't go ahead with the application as the provisional limit offered was lower than I was hoping for. 

So yes - you can get new accounts with some of the banks after bankruptcy or default - but you need time - and good financial history in order to succeed. 

Dandytf

I personally have never re applied from previous default/r.b.s.
Though could be tempted to re try Barclays in a year or two, I thought they were guaranteed No`!-seems from these threads it could be no more lenient.

Sparklestar1127

Yes, some will, I think it depends on timescales though. When I met my husband 16 years ago he had defaulted debts with Barclays and they have lent to him since in the form of a loan and CC. 

sourcrates

Every 6 years your credit file is expunged, some creditors keep information internally for longer, but there is no blacklist as such, creditors are out to make money, and as long as you tick all there boxes, they will have no problem lending to you again, as the process is, in the main, automated.

[Deleted User]

Vanquis were a no but had recently become a yes. (after successfully repaying Satsuma no doubt, says the cynic in me)
Always get mail bombardments from B@arcleycard though ignore it. 
Both these cc's were in a dro but after 6 years it is hello again.
The Vanquis were pretty good as I approached them trying to decide on a balance transfer for Aqua (yes vanquis are a lower rate for me then Aqua even after what has gone on!) but after chatting it through got to realise that probably wasn't a good idea and just decided to keep the V in my purse for emergency as actually they still do work out better then Aqua if crunch came to crunch.
Don't know how paydown on a cc effects things but guess time will tell...

bamgbost

sourcrates said:

Every 6 years your credit file is expunged, some creditors keep information internally for longer, but there is no blacklist as such, creditors are out to make money, and as long as you tick all there boxes, they will have no problem lending to you again, as the process is, in the main, automated.

I believe some hold on to your data. I remember doing a "subject access request" to Natwest some years back. After a mortgage application was declined, but my broker could not understand why. And it came out that basicaly they have blacklisted my name. And said i would never be a ble to qualify for any Royal Bank of Scotland product.  I was shocked. But its true. It literally said never.

This was about 3 years ago. I have never applied for anything with them again since.

PaulW922

Deleted_User said:

A few won't, such as Amex. Most will, but the timings vary.

Well, actually.....I defaulted my Amex account back around 1997 and spent a few years arguing over the debt (I paid it, but was still pursued even when I provided a letter confirming settlement!). I did a subject access check with Amex in 2014 and they retained a lot of info about me. In 2017 I was accepted for the Gold Charge card (the 'no preset limit' one) and later a credit card too. This year I upgraded my Gold Charge card to Platinum - one of the highest profile cards available that you can actually apply for rather than having it offered to you.  I never thought I would get an Amex card again, but I did. 

I have also successfully opened credit accounts with Next, Shop Direct, NatWest, Barclaycard, MBNA over the years despite having defaulted on virtually every card in pocket in years gone by. I would stress though, that I spent years sorting my finances out and all my defaults and CCJs had log since dropped off my file. So never say never, but do not expect anything fast