loan for somone with a bad credit history
Discussion
Never heard of being refused a bank account based on credit history, unless you were applying for one with an overdraft facility? Try a 'cash card' account (e.g. with Barclays) if you're still having trouble.
There are lenders who specialise in loans for risky customers, but you will get absolutely shafted on interest rate.
There are lenders who specialise in loans for risky customers, but you will get absolutely shafted on interest rate.
Mtech25 said:
i want to consilidate.
No you don't.Work out your I&E good template here http://www.letstalkmortgages.biz/Incomeexpenditure...
This will let you know how much you can pay back each month. Write to the CC companies and tell them you don;t want the cards anymore and offer a realistic payment schedule they should freeze the interest. You can use any extra surplus to reduce your overdraft every month.
If you can manage to pay back £200 PCM split between your three creditors you should be sorted in about 18 months, if you can manage more so much the better. Another loan will cost way more as you just won;t get a decent rate.
My girlfriend is in a similar situation. She managed to get a 13 month 0% card from Virgin, which on a £5K debt is saving her quite a bit of money. She hopes to be debt free in about 2 years.
Obviously it depends how bad your credit rating is, but she was quite surprised that she managed to get the card.
Obviously it depends how bad your credit rating is, but she was quite surprised that she managed to get the card.
I have a number of CCs and overdrafts a few years back.
I consolidated to one big loan at a special interst rate of 8%. Best thing I ever did, now one lump sum just gets taken from my bank each month and its on its way to being cleared. Much less hassle than having to pay off multiple accounts
Of course its pointless if you then ed up getting more cards and building debt. But as a way of simplfying things and taking the pressue off its good - even if you do pay a bit more.
I consolidated to one big loan at a special interst rate of 8%. Best thing I ever did, now one lump sum just gets taken from my bank each month and its on its way to being cleared. Much less hassle than having to pay off multiple accounts
Of course its pointless if you then ed up getting more cards and building debt. But as a way of simplfying things and taking the pressue off its good - even if you do pay a bit more.
got 3 cc and one from work, the 3 I use are all paid by direct debit, one caused me some hassle with late fees, gave them the choice of the fee and a shredded card or no fees and to keep the card...
taking on loans to pay off other loans seems daft, talking to the CC companies seems way better
taking on loans to pay off other loans seems daft, talking to the CC companies seems way better
I don't want to come across as judgemental, but if your take home pay is higher than average, why the heck do you want a loan to pay off other debt. Surely you could just pay the existing debt off quicker by paying more each month. I reckon £3.5 of debt on a credit card would mean a minimum(ish) payment of around £80-90 per month. If you paid more each month, then the debt will be cleared sooner and you'll pay less interest?
I work in debt management (not recovery) first of all the loans that specialize in bad credit history always carry ridiculous intrest rates so avoid these at all costs. As has already been mentioned you need to break down your income and expenditure and try to figure out how much you can actually afford to pay off these cc and overdrafts. Once you have figured this out you need to write to your creditors with and offer of payment (creditors usually work on a something is better than nothing basis). If you want I can send you some predrafted letters and income and expediture review forms that my company sends to clients as a free self help pack. If you are making regular payments on credit cards this will usually help reapir/boost your credit rating. Sorry for the long reply but I hope this helps.
In this scenario a lot depends on how bad you credit file is, and what your plans are for the future.
If for example you have defaults or CCJ's on credit file, they stay there for 6 years from when they were issued.
However if you've missed various payments here and there, but withour defaulting, this is not so bad, and generally the bureaux's hold about 4 years transactions history. You will still be in the sub-prime loans category
If you write to the CCard companies with a payment offer, they are not obliged to accept it, plus it will be reported on your credit file that you are now paying by arrangement. So if your credit history is very bad, then this option won't impact you too much, but be careful if it is ok, as the arrangements will be on your file for at least 4 years and will count against you.
Firstly get a copy of your credit file, there are 3 bureauxs in the UK, it can be worth getting your file from each, this will cost you £6 (total), and make sure it is as it should be. Once your sure about that and you've looked at your monthly figures, find the option that suits you best -
0% balance transfer
New loan
Arrangement plan
Each has good and bad points depending on your circumstances. Also when you are clear about the state of your credot file target the correct loan/ccard company when approaching them, if you do have adverse then this will not always be the cheapest, but the one most likely to accept to.
Good luck.
If for example you have defaults or CCJ's on credit file, they stay there for 6 years from when they were issued.
However if you've missed various payments here and there, but withour defaulting, this is not so bad, and generally the bureaux's hold about 4 years transactions history. You will still be in the sub-prime loans category
If you write to the CCard companies with a payment offer, they are not obliged to accept it, plus it will be reported on your credit file that you are now paying by arrangement. So if your credit history is very bad, then this option won't impact you too much, but be careful if it is ok, as the arrangements will be on your file for at least 4 years and will count against you.
Firstly get a copy of your credit file, there are 3 bureauxs in the UK, it can be worth getting your file from each, this will cost you £6 (total), and make sure it is as it should be. Once your sure about that and you've looked at your monthly figures, find the option that suits you best -
0% balance transfer
New loan
Arrangement plan
Each has good and bad points depending on your circumstances. Also when you are clear about the state of your credot file target the correct loan/ccard company when approaching them, if you do have adverse then this will not always be the cheapest, but the one most likely to accept to.
Good luck.
sanf said:
If you write to the CCard companies with a payment offer, they are not obliged to accept it, plus it will be reported on your credit file that you are now paying by arrangement. So if your credit history is very bad, then this option won't impact you too much, but be careful if it is ok, as the arrangements will be on your file for at least 4 years and will count against you.
Firstly get a copy of your credit file, there are 3 bureauxs in the UK, it can be worth getting your file from each, this will cost you £6 (total), and make sure it is as it should be. Once your sure about that and you've looked at your monthly figures, find the option that suits you best -
I just wanted to elaborate on the points made in each paragraph here...Firstly get a copy of your credit file, there are 3 bureauxs in the UK, it can be worth getting your file from each, this will cost you £6 (total), and make sure it is as it should be. Once your sure about that and you've looked at your monthly figures, find the option that suits you best -
If you where to make an offer (Of Less than the outstanding amount.) and it was successful then It'd go on your credit file that you did not pay off the debt in full. Which, obviously future creditors won't like and they CAN see this on your file.
I recently viewed my credit file online with Equifax, and since I've learnt a lot. I really recommend doing this. As you can learn what is on your credit file, and how companies will rate you.
HTH
Edited by HBFS on Friday 11th March 20:43
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