A reader asked: I had an old credit card debt from Vanquis, the last payment was made in 2018. It dropped off my credit file last week. I have just received a letter from Lowell saying they have bought the debt and have to contact them. Will I have to pay, just as I thought I was getting out of the woods with old debt? If I do, will it reappear on my credit file? At the time I was in a … [Read more...]
A reader asks ...
Readers have asked a huge variety of questions in the comments below Debt Camel articles or on Instagram. From credit ratings and mortgages to payday loan refunds and IVAs...
Some of them needed such long replies that I have turned them into the articles that are gathered here.
In the last week, three readers have queried what they have been told about defaults and their credit record: Ms A: I have debts that have been defaulted for about 4 years. I have set up a debt management plan and Payplan say that if my debts are sold then the new debt company can place a brand new default on the loan and the default date would be when the new debt company (not the originator) … [Read more...]
A reader, Ms J asked about a CCJ that suddenly appeared on her credit report. "I check my credit record a couple of times a year and there is now a CCJ on there. It looks like it was added 2 months ago at an address I left ages ago, possibly 8 years. I don't even know if this is real or some sort of error. It's only a few hundred but I don't want to pay it if I don't have to and I don't know … [Read more...]
UPDATE - May 2022 - the Level card changed its name to Zable. UPDATE - August 2022 - Zable started to bring in changes to correct the problems highlighted in this article. They have told me: We are making 2 changes to the feature: If a customer had no payment due on their last statement or it is their first statement they will not be charged If they have paid their statement balance … [Read more...]
A puzzled ClearScore user asked: My credit score has gone up but my affordability has gone down... not sure why sometimes I think these credit score companies just do what they want lol. Her credit score had increased by 57 to 573, but at the same time her affordability score had fallen by 15 to 64. These weren't tiny changes... ClearScore affordability scores are out of 100, so a 15 point … [Read more...]
A reader asked: For 10 years now I've been racking up debt and then burying my head in the sand. I have had letters upon letters from debt collectors, I just bin them all. I'm sure I've had a few CCJs as well. I haven't had any new credit or anything for three years. I now have a new job and more disposable income - not a lot, but better than benefits! Is there anywhere I can look to see … [Read more...]
A reader, Mr D, asked: My partner and I have a combined income of £56,000, We have a deposit of £28,000 (inheritance) and are looking to become first time buyers at a price of £230,000. We have defaulted debts that are being paid off, and previous history of payday loans from over 2 years ago from a time when our financial situation was much more difficult. The defaults are about 18 months … [Read more...]
"I have three credit cards, all maxed out. I am only paying the minimum amounts each month as I can't afford more. What are my options as this will take forever and cost a lot in interest?" A lot of people may be in a similar situation. If your credit cards are all at their limit but you have no spare money to reduce this, your options depend on how good the rest of your finances are. This … [Read more...]
A reader asked if he should offer a £1 a month token payment to his debts, wondering if his creditors would ever accept it. The simple answer is that you should make token payments offers: TO non priority debts WHEN it is all you can afford. BUT if you don't expect your situation will improve soon, you may have better debt options. In 2021 millions of people can't afford the normal debt … [Read more...]
A reader asked if she should sign up to Experian's Boost. Are any disadvantages? Would it really help her credit score? Experian's new Boost facility was introduced in the UK in November 2020: it can increase your Experian Credit Score by a maximum of 101 points; it is set up so it can never harm your credit score. Hundreds of thousands of people have used it. Let's see how it … [Read more...]