Door step lending - provident

sourcrates · 31 December 2017 at 5:07PM

nic_c wrote: »

True there are a lot of people to whom brighthouse et al are their only choices - we have seen credit unions and similar trying to redress this. The interest rate is high, but that's their business model as it factors in the higher likelihood of debtors defaulting. To try and go down the "irresponsible lending" route by the OP seems to make me wonder why, a genuine belief or hoping to get it written off. The idea is they will lend when others won't, if you try and make the lending checks so robust that you don't lend to those who can't afford it, you make it worse for those with no other alternative. That said I have dealt with people who get several provident loans getting further into debt without a way out. It is a balancing act of allowing people to get credit and interfering with their choices.

I do agree some people were lent to when clearly they should not of been, thinking payday lenders here, but once something like the payday reclaiming starts to take off, and no offense intended to the OP here, but everyone wants a slice of the action.

I suppose its just one more default expense a creditor must include within their business model, but they will adapt and survive, the reclaiming will fizzle out eventually, but yes, your right, its making it more difficult for people who need sub prime credit to actually get it.

[Deleted User] · 31 December 2017 at 5:37PM

takman wrote: »

Provident is NOT a good way to improve your credit history. Provident loans go into the Short Term Borrowing section of your credit report. This means that they are viewed the same way as a payday loan and a lot of lenders take this as a negative because it shows your struggling with money if you need to take out high interest short term loans.

I've used Provident in the past, but it didn't seem to have a detrimental effect on my borrowing ability.

takman · 31 December 2017 at 9:01PM

Bedsit_Bob wrote: »

I've used Provident in the past, but it didn't seem to have a detrimental effect on my borrowing ability.

One loan amongst other data that demonstrates a good use of credit will probably not stop you getting mainstream credit. But as it goes in the same category as payday loans on your credit report it is definetly a negative when trying to get the top credit deals. Plus multiple loans with no other credit history would almost certainly stop you getting the top credit deals.

sourcrates wrote: »

Many people who live well below the breadline, and who for various reasons, do not have access to mainstream credit facilities, have to use companies like Brighthouse, Provident, and the like.

They may exploit this market, but for a lot of people, it is a lifeline, yes the interest is extortionate, but usually the people who use the sub prime lending market, and need credit, have very few other options if they want to borrow.

I think the key word here is "want to borrow", they want brand new TV's, Washing Machines, Cookers etc but they don't need them. The are plenty of decent second hand goods advertised online (usually facebook) for really cheap and sometimes free. There really is no need to get expensive things if you can't afford them and suggesting that people need to use places like Brighhouse is irresponsible.

[Deleted User] · 31 December 2017 at 9:52PM

takman wrote: »

One loan amongst other data that demonstrates a good use of credit will probably not stop you getting mainstream credit.

It wasn't just one loan.

I used them quite extensively, for car insurance, road tax and similar annual expenses.

sourcrates · 31 December 2017 at 10:57PM

takman wrote: »

One loan amongst other data that demonstrates a good use of credit will probably not stop you getting mainstream credit. But as it goes in the same category as payday loans on your credit report it is definetly a negative when trying to get the top credit deals. Plus multiple loans with no other credit history would almost certainly stop you getting the top credit deals.

I think the key word here is "want to borrow", they want brand new TV's, Washing Machines, Cookers etc but they don't need them. The are plenty of decent second hand goods advertised online (usually facebook) for really cheap and sometimes free. There really is no need to get expensive things if you can't afford them and suggesting that people need to use places like Brighhouse is irresponsible.

So poor people can’t have aspirations is that what your saying ?

Because your poor, you have to make do with some old loves grimey cooker found in a skip off the high street and stuck on Facebook to flog.

There’s lots of things you don’t really need, but that enhance people’s quality of life, tv, cooker, washing machine to me, are essential, not luxury items, have you actually seen the state of some people’s second hand goods ?

Yes occasionally you get a bargain, but generally it’s old tat no one else wants.

If it’s a choice between some old tat and a new item from bright house, I’ll take what the house has every time, I might pay over the odds for it, but at least it will be new with a warranty.

If that’s irresponsible then your right.........

takman · 1 January 2018 at 12:12AM

sourcrates wrote: »

So poor people can’t have aspirations is that what your saying ?

Because your poor, you have to make do with some old loves grimey cooker found in a skip off the high street and stuck on Facebook to flog.

There’s lots of things you don’t really need, but that enhance people’s quality of life, tv, cooker, washing machine to me, are essential, not luxury items, have you actually seen the state of some people’s second hand goods ?

Yes occasionally you get a bargain, but generally it’s old tat no one else wants.

If it’s a choice between some old tat and a new item from bright house, I’ll take what the house has every time, I might pay over the odds for it, but at least it will be new with a warranty.

If that’s irresponsible then your right.........

I'm really surprised you of all people have this kind of attitude!.

Alot of the stuff is pretty decent on Facebook because most people get rid of stuff just because they want something new and not because it's worn out.

But the worst part of it is that you seem to think that Brighthouse is the only way to get new goods. Getting a second hand item for a time and saving what you would pay Brighhouse would be far better. This would mean you spend far less getting the item and don't get in debt.

Puddylove · 1 January 2018 at 12:46AM

takman wrote: »

I'm really surprised you of all people have this kind of attitude!.

Alot of the stuff is pretty decent on Facebook because most people get rid of stuff just because they want something new and not because it's worn out.

But the worst part of it is that you seem to think that Brighthouse is the only way to get new goods. Getting a second hand item for a time and saving what you would pay Brighhouse would be far better. This would mean you spend far less getting the item and don't get in debt.

There is nothing wrong with buying, or better still being given, second hand or refurbished goods. It allows you to meet the need while you save up for a new item, if that's what you decide to do.

When I split with my ex I owed £25k or thereabouts and I have a secondhand sofa, an old carpet from my parents' dining room circa 1970, a refurbished Vax (cost £25), etc.

This allowed me to repay the debt, and save. Plus, it's better for the planet to recycle/use secondhand. No shame in it, no lack of aspiration. Just a refusal to get trapped by debt pressures due to consumer society pressures.

Happy New Year!

nic_c · 1 January 2018 at 12:48AM

takman wrote: »

I'm really surprised you of all people have this kind of attitude!.

Alot of the stuff is pretty decent on Facebook because most people get rid of stuff just because they want something new and not because it's worn out.

But the worst part of it is that you seem to think that Brighthouse is the only way to get new goods. Getting a second hand item for a time and saving what you would pay Brighhouse would be far better. This would mean you spend far less getting the item and don't get in debt.

Getting things through brighthouse is shocking you pay far more than the goods are worth, but you are thinking in a different mindset to those who use such services. Items are touted on a weekly cost rather than the total you will pay for them (I know that information is there), but many won't be able to get funds to pay outright for a second hand goods whatever the source. They know what they get a week and what they can afford, I doubt you will get anyone on facebook willing to part with goods on promise they'll get a fiver a week or such.

sourcrates · 1 January 2018 at 12:52AM

nic_c wrote: »

Getting things through brighthouse is shocking you pay far more than the goods are worth, but you are thinking in a different mindset to those who use such services. Items are touted on a weekly cost rather than the total you will pay for them (I know that information is there), but many won't be able to get funds to pay outright for a second hand goods whatever the source. They know what they get a week and what they can afford, I doubt you will get anyone on facebook willing to part with goods on promise they'll get a fiver a week or such.

This is exactly my point, sometimes needs must.

sourcrates · 1 January 2018 at 1:00AM

takman wrote: »

I'm really surprised you of all people have this kind of attitude!.

Alot of the stuff is pretty decent on Facebook because most people get rid of stuff just because they want something new and not because it's worn out.

But the worst part of it is that you seem to think that Brighthouse is the only way to get new goods. Getting a second hand item for a time and saving what you would pay Brighhouse would be far better. This would mean you spend far less getting the item and don't get in debt.

No, you missunderstand me, my point is you should not berate people for choosing to use bright house, benetfits tend to be paid mostly, on a weekly, or fortnightly basis, this makes up the demographic of bright house customers in a lot of cases, it’s not the only way for most, but for some it might well be.

I’m not going to argue the toss over this, it’s just my opinion, of which I am entitled to, yes second hand goods are available a lot cheaper, and you may just get lucky and get a bargain, but for those who want new, and companies such as BH are there only choices, should not be slated for using them.

There’s too much of that on these forums at present, anyway,

Happy new year !!

Door step lending - provident

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