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  • FIRST POST
    • BatchedMetting
    • By BatchedMetting 20th Mar 17, 1:16 PM
    • 45Posts
    • 5Thanks
    BatchedMetting
    Just got turned down for a loan - any thing I can do?
    • #1
    • 20th Mar 17, 1:16 PM
    Just got turned down for a loan - any thing I can do? 20th Mar 17 at 1:16 PM
    I was sent a letter by my bank (Natwest) about loans. Between me and my partner, we have a lot of debt (credit cards and overdrafts) so I took them up on their offer applied for a loan.

    I was turned down so am wondering if there is anything I can do to find out why or improve my rating for next time?

    Are there any loan service that will let you see how much you can get, rather than having to enter an amount yourself which you might not get?

    Thanks.
Page 1
    • DCFC79
    • By DCFC79 20th Mar 17, 1:26 PM
    • 28,991 Posts
    • 18,300 Thanks
    DCFC79
    • #2
    • 20th Mar 17, 1:26 PM
    • #2
    • 20th Mar 17, 1:26 PM
    I was sent a letter by my bank (Natwest) about loans. Between me and my partner, we have a lot of debt (credit cards and overdrafts) so I took them up on their offer applied for a loan.

    I was turned down so am wondering if there is anything I can do to find out why or improve my rating for next time?

    Are there any loan service that will let you see how much you can get, rather than having to enter an amount yourself which you might not get?

    Thanks.
    Originally posted by BatchedMetting
    Improve your rating that no 1 can see, bit pointless me thinks.

    Your credit history is what lenders see so focus on looking at it.

    You wont find out why you were turned down, well you could write to them but they arent obliged to tell you.

    You were most likely turned down as the debts are too much in relation to what you were looking for and the salaries.

    Look at your spending and reduce the outgoings. Spend less on the shopping, only buy what you need, no buying items you willl only use once.

    Maybe you should go and post on the debt free wannabe board.
    Last edited by DCFC79; 20-03-2017 at 1:32 PM.
    Je Suis Charlie
    • zx81
    • By zx81 20th Mar 17, 1:28 PM
    • 11,243 Posts
    • 11,214 Thanks
    zx81
    • #3
    • 20th Mar 17, 1:28 PM
    • #3
    • 20th Mar 17, 1:28 PM
    It'll likely be down to affordability, if you're carrying a lot of debt.

    Best approach would be to shift smaller amounts around - eg a BT to move one of the cards - rather than going a larger amount.

    If you post up some details here - income, debts, rates, credit history, etc you'd be able to get some better advice.
    • BatchedMetting
    • By BatchedMetting 20th Mar 17, 2:29 PM
    • 45 Posts
    • 5 Thanks
    BatchedMetting
    • #4
    • 20th Mar 17, 2:29 PM
    • #4
    • 20th Mar 17, 2:29 PM
    Thanks.

    Me and my partner/girlfriend recently opened a joint bank account which has linked out credit reports.

    We are both employed through our LTD company so I think officially self-employed.

    The amount I wanted to borrow over 5 years was about 50% of our total annual income. Mainly to pay off debts in my partner's name.

    When applying for the loan I wasn't given the opportunity to enter my partners income, but I guess they could see her debts when checking me out.

    Also, the reason I gave for the loan was 'pay off other debts' or something similar. But in my name, the total amount owed isn't close to the amount I was trying to borrow - would that look suspicious? I.e. I have debts of £5k but wanted to borrow £25k to pay off debts?

    Is it possible to get a joint loan, that would take into account both our incomes?

    What we are paying out each month now in debt repayments is about the same as what the loan repayments would've been. Which is a pain as what we are paying now includes a lot of interest, rather than being pure repayment as a loan would be!
    • DCFC79
    • By DCFC79 20th Mar 17, 3:36 PM
    • 28,991 Posts
    • 18,300 Thanks
    DCFC79
    • #5
    • 20th Mar 17, 3:36 PM
    • #5
    • 20th Mar 17, 3:36 PM
    Is it possible to get a joint loan, that would take into account both our incomes?

    What we are paying out each month now in debt repayments is about the same as what the loan repayments would've been. Which is a pain as what we are paying now includes a lot of interest, rather than being pure repayment as a loan would be!
    Originally posted by BatchedMetting
    Yes you choose the joint loan option or find a lender who provides joint loans.

    Depends if you can get a loan that the monthly payments are less than what your paying now.
    Je Suis Charlie
    • BatchedMetting
    • By BatchedMetting 21st Mar 17, 1:00 PM
    • 45 Posts
    • 5 Thanks
    BatchedMetting
    • #6
    • 21st Mar 17, 1:00 PM
    • #6
    • 21st Mar 17, 1:00 PM
    Yes you choose the joint loan option or find a lender who provides joint loans.

    Depends if you can get a loan that the monthly payments are less than what your paying now.
    Originally posted by DCFC79
    Thanks, will have a look for that. Is there such a thing as a loan broker who can help you find the best products?

    All the online loan calculators I've looked at have quoted monthly replayments that are lower than what we are paying now, plus the loan would eventually be paid off after a few years, rather than a life time on the credit cards.
    • ashp
    • By ashp 21st Mar 17, 1:14 PM
    • 403 Posts
    • 133 Thanks
    ashp
    • #7
    • 21st Mar 17, 1:14 PM
    • #7
    • 21st Mar 17, 1:14 PM
    I had similar debts a few years ago. Took out a joint loan with my partner for about 28k from HSBC and just finished paying it back before Christmas.

    Make sure you study all 3 of your credit reports. If you are doing a joint application ensure you partner thoroughly checks credit reports also.

    Providing everything is good in your reports check out some loan affordibilty calculators. This should give you an idea of what you could borrow.
    • BatchedMetting
    • By BatchedMetting 22nd Mar 17, 10:17 AM
    • 45 Posts
    • 5 Thanks
    BatchedMetting
    • #8
    • 22nd Mar 17, 10:17 AM
    • #8
    • 22nd Mar 17, 10:17 AM
    That is good you got the loan and good you've paid it off now!

    How do you know if "everything is good" in your reports? What are you looking for? Thanks.

    Hmm, Zopa don't offer joint loans so should I try and get a single loan with them as apparently they are lenient.

    Or should I try for a joint loan with someone else?

    Any recommendations of a lenient joint loaner?
    Last edited by BatchedMetting; 22-03-2017 at 10:27 AM. Reason: more info
    • heartbreak_star
    • By heartbreak_star 22nd Mar 17, 10:55 AM
    • 7,379 Posts
    • 16,176 Thanks
    heartbreak_star
    • #9
    • 22nd Mar 17, 10:55 AM
    • #9
    • 22nd Mar 17, 10:55 AM
    I wonder whether maybe you should post on DFW...consolidation is very often not a good idea.

    HBS x
    I believe in ordinary acts of bravery, in the courage that drives one person to stand up for another.
    • DCFC79
    • By DCFC79 22nd Mar 17, 8:04 PM
    • 28,991 Posts
    • 18,300 Thanks
    DCFC79
    Thanks, will have a look for that. Is there such a thing as a loan broker who can help you find the best products?
    Originally posted by BatchedMetting
    Go through a loan broker if you like but you could get money taken left right and centre.

    Maybe consolidation isn't for you and as suggested you should go over to the DFW board.
    Je Suis Charlie
    • Nasqueron
    • By Nasqueron 23rd Mar 17, 9:50 AM
    • 4,181 Posts
    • 2,315 Thanks
    Nasqueron
    It's an era of more responsible consumer lending, there is no guarantee you won't use the consolidation for a holiday or other frivolous spending (remember those old Ocean Finance adverts which pretty much encouraged you to use the fact you were spending less per month to waste the extra income?) so they have to judge it on loan + all debts rather than seeing the loan as repayment for the other debts - and there is no guarantee you won't just run up the cards again as soon as they are clear.

    There is an argument for some sort of government funded debt charity that could essentially act as a middle man who take the loan and pay off your debts so you never see the money thus no temptation to waste it and then help you cut up cards etc so there is no chance for you to run up debts. Unfortunately there are 1001 stories on here of consolidation that results in the person clearing debts then running them all up again leaving them with twice as much debt which is why lenders don't like consolidation loans.

    Go to the debt free pages on here for advice on cutting spending and snowballing debt to help you clear the decks
    • BatchedMetting
    • By BatchedMetting 23rd Mar 17, 10:13 AM
    • 45 Posts
    • 5 Thanks
    BatchedMetting
    Thanks, that makes sense.

    I will have a look on DFW. Although I don't think that we would pay off the extra if we didn't have to. If we have a loan then we have to pay back £500 per month.

    However, if we want to pay off the credit cards, we'd need to choose to pay more than the £500 per month (otherwise we would just be paying the minimum which would take decades). As things are so tight, I don't think we would be able to optionally pay over the £500.
    • Nasqueron
    • By Nasqueron 23rd Mar 17, 11:32 AM
    • 4,181 Posts
    • 2,315 Thanks
    Nasqueron
    Thanks, that makes sense.

    I will have a look on DFW. Although I don't think that we would pay off the extra if we didn't have to. If we have a loan then we have to pay back £500 per month.

    However, if we want to pay off the credit cards, we'd need to choose to pay more than the £500 per month (otherwise we would just be paying the minimum which would take decades). As things are so tight, I don't think we would be able to optionally pay over the £500.
    Originally posted by BatchedMetting
    There is a possible case for financial hardship with the bank but the point of snowballing is to pay the minimum on the lowest interest rate, pay off the highest as fast as you can then move onto the next - it can work out better
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