SHOULD CREDIT CARD COMPANYS REVIEW YOU

[jpj]

And i blame the wallet manufacturers for making wallets that can hold them all...mine used to open up like a hardback book![B)]

[Adam Davies]

Hi
I agree with iva-solutions.
I have spoken with people about their debts and everyone,like myself,continued to use credit for a further 6-12 months even though they knew that they had a "terminal" problem.
What is needed is a stop to automatic credit card increases to be replaced by an invite and then an affordability test.I am sure that this would both make the debtor realise that they must take action and reduce the overall debt that is accrued before seeking help.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[johnpaul]

hi andy same here i was going very deep into debt i free that maybe if you have a loan then you should not take out credit until its paid of
i know barclaycard wont acept people who do ivas now andy and people who do ccjs or bankrupts any thoughts andy

JOHNPAUL

[BrassicLintus]

Johnpaul, unfortunately only being able to get credit once you've paid off your existing credit probably wouldn't work!! It's a mad world Johnpaul, you need a credit history to be able to get credit!!!! I believe companies like to see a couple of active creditors on your credit file and see that you make regular payments to them. I had about 6 credit cards before a couple of my creditors (Virgin and Barclaycard) reduced my credit limit but unfortunately they did this after I'd maxed them out!!!

[jpj]

Well I have been told my credit file is not actually that bad (which shocked me !) "apart from an IVA and a few defaults its looking pretty good"!![:0]
If you can get/or keep your mobile phone contract throughout your IVA and pay it on time this actually goes some way on your credit file to improving it!
Also ensure you are on the electoral role all through your IVA too!
I dont want credit cards etc when my IVA finishes..but a more favourable mortgage rate would be nice!!
Just out of interest, if you miss a payment on your IVA does it go on your credit file??[B)]

[Minnie]

Some of you will know that I recently had to consolidate my own debt to enable there to be sufficient surplus income to support my husband's IVA. For the record my own debt had been running just fine but obviously when you start to detail the income and expenditure the figures didn't stack up so I had to consolidate.

This has now all gone through and it is interesting to read about credit card companies reviewing limits. I paid off several cards, which in itself was a good feeling - albeit I had been extremely wary of taking out a secured loan.

That said it had always been agreed with my husband's IP that I would need to build into the new payment schedule an allowance per month to allow me to purchase a new car. My old car cost me £300.00 to put through its MOT and I was only offered £400.00 in part exchange! I had to put it through its MOT though because I was not in position to part-ex at the time and with my car being the main family car (husband doesn't have a car) it was essential I changed it.

Anyway the intention was to purchase a new car on a credit card but to balance transfer to a very low APR card. Some may think this madness but it worked out cheaper than having a loan - not that I could get a loan anyway through the normal borrowing channels.

Imagine my surprise when I checked my Halifax card account to find that two days after the cheque had cleared, my credit limit that was in excess of £7,000 had been reduced to £500.00. This was the card I was to balance transfer to!

I rang them up and they said they periodically review customer accounts and I was deemed high risk from my credit report. I have access to my credit report and apart from there being several searches (which I know do go against you) everything was paid and up to date.

They said it was nothing to do with the fact I had recently paid the account virtually in full but it all seemed a little coincidental that I had recently paid off the £7k+ balance AND that my husband who is going through the IVA process at the moment has Halifax as one of his creditors.

The difficulty being that I had already purchased a new car (before I knew about the reduction in limit) and my hope is to be able to balance transfer to my Barclaycard, which again is a low APR.

At the moment there does not appear to be any signs of Barclaycard reducing my limit as they have recently produced their monthly statement and my balance remains intact but I do check it every day.

[johnpaul]

hi minnie even barclays are doing it now on on posting i put that credit card companys should say if your salary is 25k that a max of £10k credit limit on a credit card or a loan and that you pay back at 10% of the total amount of money you owe on that card or loan and this will stop people falling into the trap what i would like to see is 3rd party companys eg morgan stanley etc etc stop sending letters out offening credit unless you dont have any credit then its up to you i think we are spending far to much on credit credit card lenders know this and keep giving you more eg my first credit card was with mbna 1k limit then within 18 months 3k limit and then kept offening me more one of my very last loans was hfc house hold bank got a loan for 8k but was told i needed more to pay of 2 other loans they told me wait 3 months and we will give it to you i waited 3 months and they told me i cant have it i went to lloyds tsb and they gave me a top up of 5k within 5 months i was in big trouble had to seek help and put me on a dmp i think if you take out a loan you should have your credit card taken of you and then no more credit cards loans until thats paid of

JOHNPAUL

[johnpaul]

now i think credit card lenders and loan lenders are waking up at long last saying people are spending more than we have coming in that wait to see what happens

JOHNPAUL

[jpj]

I WISH YOU WOULD USE COMMAS AND FULL STOPS JOHN PAUL!! Your posts are so difficult to read!!!