I had an overdrawn account at Lloyd's and cos of this my credit rating is bad and I cant open a student?

Question

account how do I imporve my credit rating? it was a lng time ago and they closed my account at Lloyds TSB, but my credit raing is still bad

Answer 1

I had a majorly overdrawn student account with Bank of Scotland yet Halifax opened me with open arms and even gave me another £500 overdraft. this was several years ago mind you, worth trying lots of banks though, some of their policies might be different.

Answer 2

The best way is to pay your bills fully, on time.

In your case, I'd find out the status of the Lloyd's account, and pay them back. Get a copy of your credit report, and see what's on it. If you have multiple credit cards or other loans, start paying them off as well. Make the minimum payment on all of them, except the one with the lowest balance, and put every single nickel you can towards that. You should be paying 5-10 times the minimum payment if you can do it. This might mean that you give up lunches out every day, and carry a brown bag. Or you stop smoking, drinking beer, and buying lottery tickets, and use that money towards the debt. Or you give up the weekend nights out drinking with your friends, and get a second job in a gas station, or stocking shelves, or something like that. And every cent of the paycheck goes towards paying off these loans.

Once a loan is paid, request IN WRITING (that's important) that the lendor send an update to the credit bureaus to show that the loan has been paid. Then take all the money that you paid each month for this loan, and apply it to the loan with the next highest balance, and repeat the process until everything is paid off.

It will take time, but it can be done, and you'll make a big difference in your credit rating.

Answer 3

First off... the bank cannot legally send you to collections unless you've been overdrawn for thirty days with no positive activity in the accounts. Also, depending on who the bank does collections with, usually they don't even effect your credit report. All that'll happen is they'll send you to chex systems... which is a nation wide reporting agency that knows who you have accounts with, how many accounts you've had accounts with in the past, and if you owe any bank money. If you owe one bank money, usually no other bank in the country will let you open up an account. I'd tell the person at your bank that you'll call the BBB if they keep threatening you...that's just unethical.

Answer 4

Get your credit report and review it for negative items. I am sure Lloyds is on there. Contact them and see if there is anything you can do such as work out a payment plan with them. This same thing happend to me last year and my credit score was 540. I found a great solution at http://www.your-credit-solution.com/creditsolutions.htm and now my credit score is 746. Just being able to raise my credit score has saved me a lot of money.

Answer 5

i tried to open a student account with llyods last year and was denied for poor credit rating too.ive never been overdrawn or in anyway had poor credit.ive only ever had one bank account before this and hadnt even really used it...they say they dont take into account your address but i cant see any other reason why i would be denied:/
in the end i went to HSBC who had no problem with my supposedly poor rating so perhaps try other banks? (they all have different methods of calculating your rating)

Answer 6

Things like this stay on your credit report for six years. If it was longer than 6 years ago and still appears on your credit report, write to Experian and ask them to remove the entry, or write to Lloyds.

Answer 7

Can't believe they are like that at all the banks unless you never paid them back, which I'm no expert at.

Have you tried the others: Lloyds if they are to blame you can burn for the rest of your life: I did NatWest, when they lied on the phone about setting up an overdraft limit and never set it up.

Answer 8

Is that account paid off? If not,get in touch with Lloyds and pay off the account.They may be willing to work with you on this matter.If you never paid off the account,you still owe them.Just because they closed the account does not mean the debt is forgiven.

Answer 9

i would say unless you are really dumb you will be out of school because it will take that long to improve your credit -- just a case of poor money management coming back to haunt you -- not the end of the world -- you are not along -good luck

Answer 10

Not defaulting on debts is the best way.