Finances are screwed :c

satanicguardian

satanicguardian

satanicguardian

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Joined
20 Aug 2007
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1,333
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Solihull
Hey guys, need some advice please! :(

Basically about 5/6 years back I made a few poor decisions and took out finance on a computer I couldn't afford etc as well as a few other stupid decisions on credit, within the last 2-3 years I've been working as hard as possible to repair the damage but it's just getting to the point where no matter how hard I try I still get declined for everything!
Over 12 months my score has gone from like 549 to 787 (had peaked at 840 but Three mobile messed up taking a payment and it got marked against me for some reason).
Still even now everytime I apply for any type of credit/finance or account it's instantly rejected, I make £1250 a month and am now a self employed director of a small business and have been desperately trying to get things sorted but even if I apply for say an overdraft limit with nationwide (whom I've been with for 5 years and never gone overdrawn) it still instantly declines me, I can't even get a £29 per month phone contract in my own name..

The only thing I've been accepted for was a capital one classic card but it has an APR of like 49% so i'd prefer to avoid it, I basically need a safety net (in the form of overdraft) as I'm planning to move in with my girlfriend.

Can anyone advise of what I can do in this situation? I'm getting kicked around because of crappy credit history even though I'm fine now, it's infuriating to think that because of said history it seems I can't be trusted with a bloody £100 overdraft!

Thanks,

Jamie
 
Not sure if it's any help but when I applied for a credit card I went with Capital One also; basically for people with no credit or crap credit (I was the former). The APR is a disgrace and I spend heavily with it but always pay back all of it at the end of the month, not sure if you want this or would like to spread. It's being a life saver at times. Hope you get it all sorted :)
 
Was and still am in the same boat. The only card i could get was a Luma and use this to pay my petrol and then pay it back as soon as i get paid etc. This is slowly bringing up my rating. Have now got a car on finance to help the credit rating but im paying stupid % on that though. Turns out my rating was so bad because my current account cards address was still at my mum and dads for a few years. Me being an idiot and not realising the address would affect my rating.

Hopefully all will be good again by the time we have saved for our mortgage in a few years time. Although i can say my CR was in the 400 when i first checked and could still get this car and Luma. Might be worth ringing expedia to talk about your account?
 
Where are you seeing these numbers from?

As far as I know, there's no "credit score", just a credit history.

Although I imagine someone like Experian probably compile their own "credit score", each bank will have their own scoring system anyway.
 
From reading your post I understand that:

- You don't have much in the way of savings
- You have a relatively low income (national average is £1750 per month after tax)
- You have a patchy credit history, as most things will stay on your file for c. 6 years
- You have a credit line in the form of a basic Capital One card
- You are seeking a 'safety net' in the form of further credit

As it stands today you are a risk to lenders with a plethora of applications that never materialised on your credit file i.e. likely declines. My suggestion is that you a) reduce your spending, b) do not seek further credit beyond the Capital One card you have to remove the temptation/ability to spend beyond your means, c) focus on earning and managing your existing finances more effectively. Use a PAYG SIM, or find a way to have a SIM only phone contract guaranteed by somebody else (I presume/hope you aren't trying to get a brand new phone?).
 
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Stay out of debt and any defaults getting written off your record in 6 years.

Probably doesn't help you much at this very moment but taking out things with huge repayments will only increase the chances of defaulting and resetting the clock.

I have lived credit free for 5 years now because of past problems. If I ever become credit worthy again I will think a lot longer and harder before committing to credit again.

I have basically reverted to what my Grandparents and parents preached to me. Save up for it.

I buy my mobile phone then get a sim only contract, I have a home phone contract. Everything else is purchased outright or not at all.
 
Ayahuasca said:
Don't lend any more!
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*borrow
Third Opinion said:
Stay out of debt and any defaults getting written off your record in 6 years.

Probably doesn't help you much at this very moment but taking out things with huge repayments will only increase the chances of defaulting and resetting the clock.

I have lived credit free for 5 years now because of past problems. If I ever become credit worthy again I will think a lot longer and harder before committing to credit again.

I have basically reverted to what my Grandparents and parents preached to me. Save up for it.

I buy my mobile phone then get a sim only contract, I have a home phone contract. Everything else is purchased outright or not at all.
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There's a lot of sense in this post. I'd only add that you shouldn't live like that forever if you want to maximise your spending power; there are ways to make money and get major discounts on things you may be already purchasing e.g. I make £108/year from buying fuel on my Santander 123 credit card, let alone the other benefits.
 
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satanicguardian said:
Ideally I need 2-3 grand to consolidate but no one will approve me for anything :(
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I was in exactly the same boat until this year I received a letter from MBNA offering me a 0% balance transfer card (0% for 24-36months) with a £6.5k limit.

Transferred about £5k of debts to it, and now saving myself about £100 of interest per month, paying the minimum is finally paying off the total. It is fantastic.

I waited about 3yrs for this to come through too.

drakioned said:
I don't think the national average is that high?

I'm seeing £1500/m at the 50th percentile from HMRC's post-tax numbers.
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Not sure if that is adding in pensions etc, but i'm around that. Big city jobs will probably skew the average though as the salaries for some are obscene.
 
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drakioned said:
I don't think the national average is that high?

I'm seeing £1500/m at the 50th percentile from HMRC's post-tax numbers.
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Are you looking at the median?

Edit: I just checked the ONS and it seems £1500 is more akin to the overall median - I was looking at full-time employees only.
RedvGreen said:
I was in exactly the same boat until this year I received a letter from MBNA offering me a 0% balance transfer card (0% for 24-36months) with a £6.5k limit.

Transferred about £5k of debts to it, and now saving myself about £100 of interest per month, paying the minimum is finally paying off the total. It is fantastic.
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In general these sorts of things are a good deal, but there's still a cost to the money - don't forget there's a fee for the transfer!
 
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JoeF1 said:
Was and still am in the same boat. The only card i could get was a Luma and use this to pay my petrol and then pay it back as soon as i get paid etc. This is slowly bringing up my rating. Have now got a car on finance to help the credit rating but im paying stupid % on that though.
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OP, don't do this. Getting a CC with a stupid APR is good idea because it lets you build credit history without actually paying the interest. Getting a car on finance does help with the credit score but you'll be contractually obligated to pay the stupid APR that comes with the finance that you'll be accepted for with a bad credit history. It's completely counter-productive.

Also, unless you're on some free trial for the credit score websites, cancel it. It's another unnecessary expense. There are free alternatives for checking your credit history such as Noddle.
 
drakioned said:
If Three messed up a payment, you should be able to ask them to remove whatever they put on your credit file.
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This, any negative marker on your credit record from their mistakes need to be rectified.

satanicguardian said:
The only thing I've been accepted for was a capital one classic card but it has an APR of like 49% so i'd prefer to avoid it, I basically need a safety net (in the form of overdraft) as I'm planning to move in with my girlfriend.

Can anyone advise of what I can do in this situation? I'm getting kicked around because of crappy credit history even though I'm fine now, it's infuriating to think that because of said history it seems I can't be trusted with a bloody £100 overdraft!

Thanks,

Jamie
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You are looking at the Card wrong!
It can be used to help you even with the stupid APR, similar to one of those horrendous vanquish cards. Use the card instead of your Debit card for your everyday spending. MAKE SURE it's paid off before the end of the month when the interest actually hits.

As for past "mistakes" they will be on your credit record for upto 6 years.
your "safety net" is not spending 100% of your money every month and saving a little, I know it sounds harsh and stupid but its right.

Any current outstanding monies owed? CC, loan, anything else?

As tempted as you may be DO NOT go to a payday loan style institution, stuff like Wonga and the like prey on those they know will struggle and have been in trouble before for irresponsible lending.

That and as soon as ANY lender sees a payday loan on your credit report that puts a serious impact on your application.

As for "I can't be trusted with a bloody £100 overdraft!"

your credit history seems to suggest that is correct and it's your credit score/history/record everyone goes by, well unless its uncle bobs mate down that back room at the pub ;)
 
Wow that's a lot to go on with there! Thank you everyone for your input - the general consensus seems to be that I should tough it out and live skint for a while, whilst using a credit card sensibly and keep it repaid.

It's just so frustrating that mistakes you make when you're younger and more careless tend to haunt you many years later.. but I guess that's the same for many things!

I'll have a closer read through all the advice and see if I have any possible questions!

Thanks all,

Jamie
 
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