I've rebuilt my credit score BUT...

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isseymyake
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by isseymyake » Fri Jan 27, 2017 9:55 pm
Hi all, it's been awhile since I've posted having had my completion certificate a good while now and managed to rebuild my credit score. Everything dropped off in November last year.

I have taken out a credit card to help rebuild my credit rating and I pay it off in full automatically every month. I have also slowly watched my credit rating recover over the months and was over the moon when my IVA finally stopped showing on my credit file and my score shot up to 936/999. My problem is this..2 years ago my now ex partner took a loan out on my behalf as my car totally died on me and was dangerous to drive. We added a bit extra to the car loan for some home improvements. Even though he took the loan out it has been me paying it from the start as I no longer had to pay into my IVA, (I did a FF) so I paid him and he paid the loan.

Since then we have parted company and he has now asked as my credit report is looking good and I have a high score if it possible for me to get a loan out to pay 'his' off that way I can carry on paying my car off without relying on him. I felt this a fair request. So I did a soft search and was gutted to find my own bank rated me as 80% of being accepted and everyone else like Sainsburys and Tesco 30% chance. I felt this couldn't be right so I called in my bank and they looked at my account and confirmed there would be no issue with me borrowing the 16k I wanted as by their credit rating score I came in at a B rating from a range of A to L...A being the best. So when they run the check on giving me a loan it jumped from a 3.9% for a A rated customer to a massive 12% for me!!! which added another 5k on the interest!!! it also added an extra £100 p/m to what I'm paying now which I can't afford. How can this be fair. Needless to say I didn't bother.

Has anyone else got any advise for life beyond IVA for someone needing a loan or is the only option for 'people like us' to be constantly penalised for the past with huge interest rates. I thought the once the 7years had gone by and things dropped off your credit file you got the chance to start with a clean slate again...I just felt what was the point of it all as I seem to have waited forever for my credit file to be clean but for what? Totally disappointed with it all. :(
Any advise would be greatly received.
Last edited by isseymyake on Fri Jan 27, 2017 10:32 pm, edited 1 time in total.
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Foggy
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by Foggy » Fri Jan 27, 2017 10:30 pm
The problem is that you now have very little history -- scores are one thing, but there is nothing in your file to show them that you can "handle" credit. From next to nothing owed to £15k is a big step in their eyes -- you have to build up in smaller steps.

My score is lower than it could be because I have only one credit card with a small limit (£1k) !!
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isseymyake
Posts: 177
by isseymyake » Fri Jan 27, 2017 10:58 pm
Hi Foggy, thanks for the reply. I have had the credit card for over a year but it's only for £500 and I have had a sofa which I have been paying on a buy no pay later since June 2015. All done in the hope of building my credit rating. Plus the usual phone and car insurance contracts. Just seems almost as hard as being in the IVA...it's always there in the background.
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Foggy
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by Foggy » Sat Jan 28, 2017 10:55 am
Yes, it is a pain. I read somewhere that Liz and Phil would fail many a credit application on paper !
Of course, on the other hand, you are not being hounded by creditors :-)
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