terrible credit rating

[Ch3tan]

I did not suggest you should buy something you do want. I said that credit is fine if you can afford repayments, and not everyone has the lump sum available for big purchases.

For example, even though I had cash available to buy my PC, TV and A/V systems upfront, I bought all on buy now pay later credit. As I paid within the year period I was given, I paid no interest at all. My money instead went into savings where it earnt me interest, and I actually had money to enjoy on other activities in the months I bought them in.

For what it is worth though, I am against the credit culture that has plunged the world into economic collapse. I am all for sensible lending though.

 

[Laddey]

I am all for sensible lending though.

any chance of £300 so i can pass my driving test

 

[pikeh]

any chance of £300 so i can pass my driving test

Bit of an expensive bribe eh? xD

 

[Laddey]

Bit of an expensive bribe eh? xD

Hahaha his silence says it all. Lets make a bucket, everybody chucks a quid in ill give 2 back within a month!

 

[pez]

One good way is to have a savings account and current account with overdraft facility. What you do is take a portion of your wages and put it into the savings account, then go into your overdraft (DO NOT exceed your overdraft limit). When you get paid it will pay the bank their money back. If you do this every other month (maybe even every month, i'm no banker so how would i know?) it shows the bank you can effectively and reliably pay the money back.

I may be completely wrong but this is what i did.

This is more or less true. I work for a bank and admittedly I deal with Commercial accounts but I see no reason why it should be very different for personal accounts and mortgages.

Basically as a brand new customer most lending is based on your credit score but over time you build up a Behavioral score which seriously effects the rate of interest on any loans/overdrafts or mortgages you can get from your bank. A customer who spends his whole time in his overdraft, bounces cheques and misses payments will either be refused a facility or get a terrible interest rate. As an example of a business overdraft, the 'best behaved' businesses currently get a rate of 3% over base if they secure it with property and the worst behaved with no security get 12% over base. Quite a difference i''m sure you'll agree.

 

[Chronictank]

I did not suggest you should buy something you do want. I said that credit is fine if you can afford repayments, and not everyone has the lump sum available for big purchases.

For example, even though I had cash available to buy my PC, TV and A/V systems upfront, I bought all on buy now pay later credit. As I paid within the year period I was given, I paid no interest at all. My money instead went into savings where it earnt me interest, and I actually had money to enjoy on other activities in the months I bought them in.

For what it is worth though, I am against the credit culture that has plunged the world into economic collapse. I am all for sensible lending though.

Thing is you could just have easily saved for all of the above and paid less for it, thats why i dont see why anyoen is compelled to pay more other than the "i want it now even though i cant afford it" attitude
While i commend you for finding the interest free deal, alot of people dont follow the same ethos and will happily pay the interest

 

[Ch3tan]

There are lots of different finance options available, and like I said, not everyone has lump sums to spend, and not everyone is good at saving. As long as you borrow within your means, then it is fine.

 

[cHodAX]

Dont, save the money and buy it outright

Buying things you dont need on credit is for muppets who dont seem to realise it is going to cost them more in the long run

Absolutlely spot on, as the old saying goes 'a fool and his money are soon parted'.

 

[ford prefect]

There is nothing wrong with buying on credit cards ( I put my last car on one, until the bank could get it's finger out and sort out the loan), but you have to be careful with credit.

If you have poor credit at the moment though, it will be very difficult to get a credit card, in fact opening a bank account these days requires a full credit check. I know capital one do a card designed to help you improve credit rating, but not sure on the details. Not that I would recommend capital one, as they lost a £3,000 payment last time I had a card with them and it took over six months to sort out.