Building Credit

[Irishson]

Hello,

 

 

after being declined for a mortgage for using payday loans,

 

 

i am on a mission to improve my credit.

 

 

I applied for a credit card with my bank which is Bank of Ireland.

I was declined, I

 

 

have yet to receive the letter which explains why,

 

 

however i checked Equifax which they use and i can't see anything untoward,

obviously i know they will interpret this data differently,

 

 

I checked a credit card eligibility checker on another site and it says that the card i have a 90% chance of getting is the aqua card.

 

 

My main concern is as i have a history of payday loans and sub prime lenders will they look at me using this credit builder card negatively,

 

 

i have taken out a finance agreement for an engagement ring, so i don know whether to sit tight for a bit?

[fkofilee]

I would sit tight. Also take into count that there are 2 other CRAs... Callcredit and Experian...

Why not look at them? Most companies use 2 or even all 3?

 

Come back to us when youve checked Noddle which is free...

[dx100uk]

taking out these 'credit rebuilding' cards to show you can 'manage' credit is a myth.

the ring finance will do that

 

the very fact you show as having PDL, sadly, at present,

appears to be the industry 'norm' to refuse you.

 

 

until/unless that changes

whilst those PDL's show

you are stuffed.

 

 

give it a year and things might change.

 

 

dx

[Stigman]

The Aqua Credit Card has a representative 35.9%APR.

 

This will not help you rebuild your credit, only put you back into debt from where you worked hard to get out of.

 

Are you on the electoral roll?

Keeping a positive balance every month in your Bank Account?

Making sure that no-one is financially linked to you on your Credit report?

 

Does the finance agreement show on your credit files? If so it will show that you are responsible and will improve slowly.

 

You need to look around for mortgages who accept those with sub-prime lending credit history, they are around but expect to either be hammered on the interest rate or the fee.

 

Stigman

[KSmith82]

taking out these 'credit rebuilding' cards to show you can 'manage' credit is a myth.

 

The Aqua Credit Card has a representative 35.9%APR.

 

This will not help you rebuild your credit, only put you back into debt from where you worked hard to get out of.

 

Well pay off each statement in full and you won't have to pay any interest at all. It will help create a reliable repayment history which shows that you can manage credit sensibly - there is not myth about it.

[Irishson]

The Aqua Credit Card has a representative 35.9%APR.

 

This will not help you rebuild your credit, only put you back into debt from where you worked hard to get out of.

 

Are you on the electoral roll?

Keeping a positive balance every month in your Bank Account?

Making sure that no-one is financially linked to you on your Credit report?

 

Does the finance agreement show on your credit files? If so it will show that you are responsible and will improve slowly.

 

You need to look around for mortgages who accept those with sub-prime lending credit history, they are around but expect to either be hammered on the interest rate or the fee.

 

Stigman

 

I would be paying it each month by direct debit in full, the only reason I had the pay day loans in the past was to show a reliable payment history, then as soon as it was banded around that mortgage companies and other financial institutions were refusing people who had them I stopped! So I'm just trying to build up credit with the "conventional" methods. I'm hoping that by the time we come round to looking for a mortgage, the fact the payday loans are over 2 years old will help. At the minute all I can do is wait for the letter from my bank to see why I was declined just incase it's something I'm unaware of, but having check all my files there is nothing unrecognised, and all accounts and PDL **** are settled and paid on time!

[maroondevo52]

I have PDL's on my credit report from about 3 years ago, each one was for a small amount over a short time to enable me to avoid more expensive bank charges which were due to be applied to my account.

I paid them all off when I said I would avoiding any excess charges or any charges on my bank account.

 

I did not think I would have much chance getting any credit cards but wanted like you to re build my credit rating.

 

Applied for a Capital one card, was accepted and given a £200 limit.

Set up a Direct Debit to pay the minimum each month but paid off as much as I could, not always paying the whole balance but almost.

 

After using the card for 7 months my limit was increased to £450, again I used the card keeping within this limit.

After 11 months my limit went up to the level it is now £1,450.

 

At the same time I applied for and was given a Barclaycard with a limit of £400, used the card keeping within the limit again with a Direct Debit set up paying minimum amount.

After 10 months the limit was increased to £800, used the card for a further 9 months and the limit has just been increased to £2,400.

 

My own Bank Account is with Santander and they offered me a Credit Card with a £1,400 limit.

 

PDL,s on your credit file are very bad news but it's still possible to build your credit rating, I've still a few years to get shot of mine from my report but am doing all I can to avoid ever taking one out again.

 

I've also had a couple of Credit Union loans over the past few years which without doubt are a much better way to borrow without getting hit with massive interest charges.

[Guest Kris_barb]

Lenders look for defaults on your payments, it does not matter if they are paid off, statute barred or satisfied. The defaults part shows which months you have not paid.

If you have missed payments this will be the problem. Check for County Court Judgements, previous address's, name links, defaults and notices of correction. Also check closed accounts and defaults on the monthly payments.

 

Banks work off a 2 credit check process's. The first is external, Experian, Call Credit and Equifax. Then they use an internal credit score between 1-9 usually. 1-3 Excellent 4-6 Good, 7-9 Bad. Ask your bank which one you are in. If you have missed payments, unauthorised overdrafts etc..the score will be negative and gets reviewed every 3-6 months.

 

If you want some help removing the defaults or you have any other questions about the process please just ask

[dx100uk]

but on here

 

 

beware of new poster offering help off cag.

 

 

dx

[Guest Kris_barb]

Yes ask on here. Im just juggling children around at the moment but I will reply as soon as possible. I have wrote around £800,000 off for consumers so far. All information is always free. Know your rights, know your options.

[dx100uk]

customers?

 

 

dx

[Irishson]

Yes ask on here. Im just juggling children around at the moment but I will reply as soon as possible. I have wrote around £800,000 off for consumers so far. All information is always free. Know your rights, know your options.

 

Well I have a default from wonga which I was going to try and get removed,

because long story short I had taken out a loan and after a period of the debt and I terest increasing as I paid off each month then borrowed again,

 

 

the spiral became too much when the last loan I got with them plus their interest added up to more than my salary,

 

 

I contacted them and aske for a payment arrangement and was told they wouldn't do anything until I couldn't pay at the end of the month,

 

 

I was never actually told or served with a default arranged a payment plan paid it off

and that was that until I noticed the default, wondering if there is any way to get this removed?

[dx100uk]

sounds like irresponsible lending to me

there is a Wonga forum

 

 

go read/post there

 

 

dx

[Guest Kris_barb]

Wonga offer a service to wipe off debts of certain Debt Collection Agency's contacted you as they were threatening customers. Check that first. Yes you can remove defaults, however, you need to plan it very carefully. The only person who removes defaults is senior management or compliance officers in relation/complaint departments. You can contest it with the CRA also. Could you list the companies who you defaulted with and who the Data Controllers for the defaults are? I will give you the names and contact details for the people you need to address them too.

 

Wonga are literally on the verge of closure so you will not struggle too much. If it stayed with Wonga and did not to go to a DCA and you expressed your financial hardship they acted illegally by further lending and you will not have to pay it.

 

"Customers? dc" consumers

[Irishson]

Wonga offer a service to wipe off debts of certain Debt Collection Agency's contacted you as they were threatening customers. Check that first. Yes you can remove defaults, however, you need to plan it very carefully. The only person who removes defaults is senior management or compliance officers in relation/complaint departments. You can contest it with the CRA also. Could you list the companies who you defaulted with and who the Data Controllers for the defaults are? I will give you the names and contact details for the people you need to address them too.

 

Wonga are literally on the verge of closure so you will not struggle too much. If it stayed with Wonga and did not to go to a DCA and you expressed your financial hardship they acted illegally by further lending and you will not have to pay it.

 

"Customers? dc" consumers

 

Hi, it was in 2013 and the only company I defaulted with was wonga,

 

 

I had a similar situation with payday UK asked for payment plan and was told the same,

 

 

I set up payment plans with and they were paid off over a year ago.

 

 

Payday UK registered a late payment but not a default.

 

 

It never went to debt collection it all stayed with PDL companies.

[Guest Kris_barb]

Thanks for that information. They will of had a period where the CRA showed the debts as partially satisfied. That however would not be enough to damage your credit to stop you obtaining more. Was there any particular reason you used PDL instead of an overdraft or a loan from your bank? I would consider checking Noddle if you have a debit card. It is a free service with a monthly update of your credit report provided by Call Credit.

 

When you have signed up look at the section called financial history and expand all fields. Anything in red is missed. Check open accounts, closed accounts, CCJ's, address history and notices of correction.

Edited February 15, 2015 by Kris_barb

[Irishson]

Thanks for that information. They will of had a period where the CRA showed the debts as partially satisfied. That however would not be enough to damage your credit to stop you obtaining more. Was there any particular reason you used PDL instead of an overdraft or a loan from your bank? I would consider checking Noddle if you have a debit card. It is a free service with a monthly update of your credit report provided by Call Credit.

 

 

When you have signed up look at the section called financial history and expand all fields. Anything in red is missed. Check open accounts, closed accounts, CCJ's, address history and notices of correction.

 

My goal at the minute is to try and have these loans taken off my credit report as I have my finance on the ring

I know that with that I am showing decent credit and in a few months will try again with my bank,

dependent on the reasons I was declined naturally,

they did say I can appeal the decision,

but I know they are not obliged to offer credit and but if it was for something unfair or that is in accurate then I will look at it then.