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Codymcmc
Codymcmc Posts: 32 Forumite
For once, I am going to give credit where it is due to 2 different finance companies

I have awful credit history including a ccj which is still on my file and 2 defaults

I was still able to get a 4k Loan from On Stride financial, I am paying back 6.5k over 3 years, which is a high APR but im still well happy with it.

My wife also had limited/no credit history until quite recently and she managed to get a 5k Aqua loan, paying back a total of 6.8k over 3 years, which is a very reasonable APR for someone with her credit history, considering we are non home owners.

I have 5 credit cards and mrs has 10, across the 15 CC the total available balances are about 13k - we very rarely use any of the cards, sometimes will stick £100 on one for food shopping or clothes shopping and pay it off again in full within 2-3 weeks.

We have made a conscious choice to have access to as much credit as possible with the long term aim for a mortgage. Don't anyone be disheartened, my credit 5 years ago was non existent, its not amazing now, but I can still get credit.

Just be sensible with it and become a trustworthy customer.
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Comments

  • DCFC79
    DCFC79 Posts: 40,598
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    See I don't see the need for 15 credit cards nor do I see the need for the 5 catalogue accounts you have open.


    As long as your happy doing it then that's what matters.
  • foxy-stoat
    foxy-stoat Posts: 6,879
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    Codymcmc wrote: »
    I was still able to get a 4k Loan from On Stride financial, I am paying back 6.5k over 3 years, which is a high APR but im still well happy with it.

    @ 40% I would be mortified. I just turned down a loan with a rate of 8% because it was too much - have you not got any money transfer options on the 15 credit cards you and your partner have?
  • Codymcmc
    Codymcmc Posts: 32 Forumite
    Well, each to there own I guess, as long as all are in good standing then there is no issues, having access to between 15-20k but using very little of it isn't a bad thing - Long term a lot of the CC with low limits will be gone, of the 15 CC me and the mrs have only 8 are worth keeping long term id say, but for now the additional 7 on top are doing no harm.

    As for the catalogue accounts - come in handy when they have 70% sales - pay it off in under 4 weeks and its interest free.

    I think its about how you use these things, and understanding that if you use them, they need paying back, so not just use willy nilly.
  • Codymcmc
    Codymcmc Posts: 32 Forumite
    yes 40% is high, but its cheaper that companies like amigo which are 49.9% as standard and require a guarantor and after all, they didn't have to give me a loan of anything, and when its paid back in full its a good confidence marker for the future, that I can be trusted with a loan and paying it back.

    We are on a long term plan, to save up and access a mortgage in the next 4-7 years and we truly believe we can achieve it now we have a new respect for credit and access to it.
  • Pixie5740
    Pixie5740 Posts: 14,515
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    Have you addressed the underline cause(s) of your over spending?
  • Codymcmc
    Codymcmc Posts: 32 Forumite
    Yes we well and truly have, its about life experience and respect, earning more, spending wisely, and understanding fully any credit arrangements you do enter.
  • Pixie5740
    Pixie5740 Posts: 14,515
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    If your wife had no credit history until recently what do you call her 10 credit cards? If you rarely use your cards and pay them off in full how do you have credit card balances of £13k?

    What have you done with the money you just have borrowed?
  • Codymcmc
    Codymcmc Posts: 32 Forumite
    what I meant was 2 years ago she had nothing, 1 year ago she had 3 CC, now she has 10, so her history is limited.

    the 13k is the total available credit across all the cards, adding up all the credit limits combined.


    It is being used wisely to make more money in the longer term.


    Paying back a total of 4k interest over 3 years for a 9k (combined) loan/s is ok with us, we understand that, I know some would shiver, but we understand and are still grateful.


    I know someone who recently got a 11k loan over 4 years and will only pay back a total of 11,900 which is an amazing apr, what business would offer 11k for a £900 profit over 4 years - still, good for them on getting terms like that - one day, if I need it, id hope that would be me.
  • Pixie5740
    Pixie5740 Posts: 14,515
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    I'm still at a loss as to what you needed to borrow £9,000 for so badly that you are prepared to accept those interest rates. Originally I though you were doing some debt consolidation but if the £13k is the available credit across your credit cards and not the balances there was nothing to consolidate.
  • Codymcmc
    Codymcmc Posts: 32 Forumite
    pixie with all due respect there are reasons why the 9k was borrowed - personal reasons - but rest assured it will not be wasted - it will be used to make more money in the longer term - as for the interest - I knew what it was going to be and am happy with it - why the need to question everything and put a downer on.

    5 years ago we had nothing - now we have access to 20k and in 5 years hopefully we will have a mortgage.

    The point of the post was we are turning things around and moving in the right direction.
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