Credit rating

[gbean2871]

Can anyone explain the affects on your credit rating when you make arrangements with your creditors to freeze interest and make reduced payments?

 

I'm only doing this on my 3 credit cards. I've never missed payments on anything before and will be continuing to pay my mortgage, bank loan, car loan etc in full.

 

Just been speaking to MBNA and they stressed that it will be 6 years from the date the account is cleared (which will be about 5 years at this rate!) - so for 11 years my credit rating will suffer!

 

Not that I particularly want to have more debt once I'm free of this lot but its really scary when you've a good credit rating at the moment and then redundancy hits.

 

Any advice appreciated.

[sequenci]

Just been speaking to MBNA and they stressed that it will be 6 years from the date the account is cleared (which will be about 5 years at this rate!) - so for 11 years my credit rating will suffer!

 

Not true.

 

The 6 years would run from the point that the mark appears on your file, they have got it wrong.

 

Here is a great fact-sheet for you:

 

National Debtline England & Wales | Debt Advice | Factsheet 05 Credit Reference Agencies

[gbean2871]

Superb! That makes things a little easier to cope with. I just want to be debt free and will work as hard as I can to get that way as quickly as possible.

 

I take it the rules are the same for Scotland (this fact sheet is from the National Debtline England and Wales)? I'm in Scotland.

 

Thanks so much for help!

[sequenci]

I take it the rules are the same for Scotland (this fact sheet is from the National Debtline England and Wales)? I'm in Scotland.

 

Pretty similar as you'll see:

 

National Debtline Scotland | Debt Advice | Factsheet 12 Credit Reference Agencies

 

[Dotty50]

Hi Gbean,

 

I am getting my Threads in a twist!

 

Just posted on JD2009 regarding MBNA's 75% reduction offer but gather it was your post!

 

I have recently requested CCA's and have not heard a dickybird from MBNA so just wondered how your OH had managed to get this offer from them?

 

I am sure a lot of readers would be interested to hear. Did he stop paying before getting the offer?

 

I am worried about my credit rating if I stop but want to be in a position to negotiate offer for F & F to them, whether or not the debt is enforcible.

 

Any help you be greatly appreciated.

 

Thanks

[B Nekket]

Hi. Credit Rating really isn't important unless you want to put yourself in some more debt, which you already mentioned. It's really more important that you pay your debts so you'll have less to worry about.

[sequenci]

Hi. Credit Rating really isn't important unless you want to put yourself in some more debt, which you already mentioned. It's really more important that you pay your debts so you'll have less to worry about.

 

What if someone just wants a straight forward re-mortgage?

[Dotty50]

Hi. Credit Rating really isn't important unless you want to put yourself in some more debt, which you already mentioned. It's really more important that you pay your debts so you'll have less to worry about.

 

Thats exactly the point Sequenci. (see previous post)

 

A re-mortgage would be an option to help to pay off my CC's but try getting one when you have high balances on them, even if the re-mortgage would pay them off (or the vast majority)!

If I trash my credit rating a re-mortgage is no longer an option and my situation cannot be resolved.

 

So Nekket, credit ratings are really important for someone trying to sort things out, the only reason I am trying to do this is because I now have health problems and have had hours reduced due to the current economical climate.

 

CCC's do NOT help in anyway by increasing interest rates, which makes it more difficult for people to pay the debt. Which I believe, most people are trying to do.

[B Nekket]

Sorry. I misunderstood the OP. Ignore my last post. I wouldn't want to mislead you.

[gbean2871]

Hi Gbean,

 

I am getting my Threads in a twist!

 

Just posted on JD2009 regarding MBNA's 75% reduction offer but gather it was your post!

 

I have recently requested CCA's and have not heard a dickybird from MBNA so just wondered how your OH had managed to get this offer from them?

 

I am sure a lot of readers would be interested to hear. Did he stop paying before getting the offer?

 

I am worried about my credit rating if I stop but want to be in a position to negotiate offer for F & F to them, whether or not the debt is enforcible.

 

Any help you be greatly appreciated.

 

Thanks

 

Hi! My husband just paid what he could to MBNA every month - no-where near the minimum payment. He didn't even have a formal plan in place with them so we are both at a loss as to why they made this offer. However, we can't complain - it is a load of our minds, although we had to borrow the cash from a close friend to clear it (low interest free payments back to friend!). I have a feeling it might have been because of CCA but we never acted on that in the first place - perhaps they thought we might?

 

However, MBNA are now being really awkward with me. I made offer payments to each of my cards since my hubby was made redundant. Citi cards and Abbey have been wonderful - no problems there. MBNA are now being REALLY awkward - the guy I spoke to on the phone couldn't have been less sympathetic if he tried. Picking holes in my income and expenditure. The first couple of times I called MBNA (in advance of this predicament as I wanted to keep everyone informed of what was happening) they were soooooo nice, saying they would go out of their way to help me and thanking me for being so upfront with them. BULLS**T me thinks. I could have cried on the phone today because of the way the guy made me feel.

 

When will it all end???

[Dotty50]

Hi GBean,

 

Thanks for that info.

 

MBNA have not had any reason to contact me yet about payment as I am just about managing the minimum.

 

I did however request CCA on 29th April to which I have yet to get a reply and have just sent 'Account in dispute' letter.

 

By what I have read on here, they are one of he worst to deal with and lots of advice on here telling you not to speak to them on the phone under any circumstances, always deal in writing. Not always so easy if they won't respond!

 

Have you checked to see how they have registered your OH's account on CRA's? Did they confirm in writing that they accepted the amount in full and final settlement?

 

I don't want to worry you but, again from reading on here, it seems that a lot of CCC's take a lump sum and then sell the remainder on to a third party debt collector, who will then start chasing you for the rest!

 

There will be many more experienced people on here to help you, I am not advising from experience yet, only from reading such a lot on this fantastic site

D50:)