Ripped off and nothing I can do?????

Grass-hopper

Hi,

I'm an ex student is due to graduate next month. I say ex as I have actually been working full time for over a year now, but went to night school in order to complete my degree. The reason I had to do this is bacuase I could not afford to carry on in full time study as I had that many debts.

Due to being at college and then University and not being eligible for a student loan, by this time last year I owed that much as regards to credit and store cards that I had to take a loan out to get creditors debts paid off. I had already acquired two silly (I say silly - me being the silly one) defaults which I should have never have let get to that point. My bank gave me a £6000 loan to pay off debt collectors etc and my existing overdraft with them. The problem was that the bank could only give me a higher rate of interest due to the fact that I was a risk. At the time, I had owed that much money to different companies that in order to stop me being taken to courts I took it. The loan is for 5 years and by that time I will have paid the bank the £6000 loan plus £6000 interest.

With all debts now paid, only had one monthly payment of £200 per month (they needed payment protection as well!!!). I got a job straight from leaving Uni and kept only one credit card which has a £200 limit on it.

When going to get a car for my new job last December, I was refused credit and it had to go through my Mum's name in order to get it.

I was told by the bank at the time I could come back at a later date once I had proved that my credit was better and they would review a different loan to cut the interest rate down. I got this phone call about 2 months ago saying they could rework my loan etc and would I mind coming in to the branch to discuss it. I did so, but when we had reworked a new loan, their credit department had came back with a refusal. They apologised and told me to try again when I graduate in November.

Now in the last year, since I have been working my credit has been spot on. I have a secure job with local government, I am still living with my parents and I bring in over £1000 per month after tax. I have made every single payment on time in the last year and when I got a credit rating and score from equifax the only problem showing up is these defaults - everything else shows excellent. Due to the defaults but, I am being refused credit when trying to apply for a new loan to take the car credit off of my mums, and also get my other loans interest rate down.

Are there any options I can use or will I basically be refused credit untill the defaults are wiped?

Thanks in advance.

Robert_Sterling_3

Why do you want to pay off the loan to your mum.
You could consider assisting your mum to get the money on to a 0% card or a low % for life card and then pay your share of any credit card interest.

Meanwhile over the months your own credit record will continue to improve.

Grass-hopper

i dont want her having my credit under her name in case she decides she wants to go for a car loan or other credit for herself. I am grateful for my mum doing it, but I'd rather her not have that financial burden.

By the time I have paid the early settlment figure interest on the current car finance, and paid the interest on the new credit card would it even be worth it? I wouldn't be able to pay off the £5500 car finance thats outstanding within a 9 month interest free period either.

On the last point - when would you reccommend re-applying for credit then?

At present my equifax credit score places me on the fair bracket of credit rating and says:

"You have a score of 358. Your score is predictive that you would be less likely to be granted credit"

Thanks.

deemy2004

To increase your credit scoring you need to

1. pay your bills on time
2. Keep your account balances low
3. Only take out new cards when you need them.

So I guess you need to give it more time, say 9 months or so more to build up your credit history. The defaults will stay on your record for a long time, over 5 years.