Defaults.... Advice Please

[The Gman]

Advice needed, Mrs Gman’s brother has just applied for car credit and was refused. He suspected this would happen as earlier last year he got into some difficulty paying a car loan and the car was repossessed leaving him with a £4000 default. He has been paying of the default each month to the tune of £175.

He took out a mortgage in April of this year and due to this default had to pay a 10% deposit which he did. But he now has a mortgage which he is paying for with no problems.

Is there anything he can do to get credit for a car? His circumsatnes have changed somewhat since the default and he now is paying for his own property which I would have thought would have helped his credit rating. Mrs Gmans dad has offered to be a Guarantor, but Pete really doesn’t want to go down that route.

[UKBob]

I personally would check with Experian and Equifax to make sure that he and only he is the only one with bad credit listed at his address. Sometimes there are other names associated with the address which affect credit applications, and these can be removed.

Whilst dealing with them, he can might be able to put a textual note against any debts he has, explaining why they came about and his current situation, which some lenders will read and take into consideration when lending him money.

[B17NNS]

would have thought he would need to wait until the CCJ (default?) has been settled in full.

He can then get a certificate of satisfaction from the court and this will be noted on his credit file.

[chim girl]

Is the £4000 default settled yet?

Does he hae any other credit that he has made late payment or had to make a reduced payment to? If he isn't sure about this it's probably worth paying the fee to Experian/Equifax to get hold of his credit history.

Finally..... stay well away from people offering to get him a car no matter what his credit history is like. He'll get the car, but he'll be stuck with it for a loooooooong time due to the prohibitive settlement penalties.

[UKBob]

[Monty]He could change his name to Loretta, and apply for a loan as a woman. Its his right as a man to do this.[/python]

[-DeaDLocK-]

UKBob said:

I personally would check with Experian and Equifax to make sure that he and only he is the only one with bad credit listed at his address. Sometimes there are other names associated with the address which affect credit applications, and these can be removed.

My understanding is that a couple of years ago they changed the policy, where one person with bad credit will no longer affect the rating of any other person within the same household.

The only exceptions to this are:

1) Where the two people are financially linked - i.e. they have applied for a joint account together or have taken out a joint loan. Something a lot simpler like a standing order or a tenancy agreement does not qualify as a financial linkage. A lodger, family member or ex-owner having a bad credit rating under the same address doesn't qualify as a linkage either.

2) Where there is a business default on the address. An address linked to bad credit from a business will affect searches on personal accounts at the same address.

3) Macro-level blacklisting - a housing area or a street with a history of bad credit from the people living within it will negatively affect all applicants living within the radius.

Other than that, the credit reference agencies are no longer to divulge address-specific credit information. If I live with you and if I am a bankrupt, your credit rating will not be affected unless we are financially linked.

[lunarscope]

UKBob said:

[Monty]He could change his name to Loretta, and apply for a loan as a woman. Its his right as a man to do this.[/python]

But then he'd go and spend it all on shoes, tall skinny lattes, etc...