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  • FIRST POST
    • nis11
    • By nis11 4th Jul 17, 12:28 PM
    • 8Posts
    • 0Thanks
    nis11
    Loan APR
    • #1
    • 4th Jul 17, 12:28 PM
    Loan APR 4th Jul 17 at 12:28 PM
    Hello,

    I`d like to apply for a loan about £20-25000.
    Currently I`m using:
    - my bank account overdraft, balance: £1100 out of £2250
    - 3 credit cards, balances: £1800 out of £2200, £2600 out of £3700 and £5800 out of £7200
    I`ve checked my credit report and it shows that my credit score is 774. Also it says that "my depth compare with my annual income is quite high" and "I`m using quite a bit of the credit available to me".

    Last week I went my bank Natwest and ask them a quote for a £25000 loan for 5 years. The quote came up with a 11.9% APR offer.
    In the next few weeks I possible get an extra £3000, which I can use to reduce my depths. Will it make any difference on my credit score and a new loan offer APR and if yes how later should I try to get a new quote?

    Thank you in advance for any info.
Page 1
    • davidwood123
    • By davidwood123 4th Jul 17, 12:30 PM
    • 450 Posts
    • 1,124 Thanks
    davidwood123
    • #2
    • 4th Jul 17, 12:30 PM
    • #2
    • 4th Jul 17, 12:30 PM
    What do you earn?
    • nis11
    • By nis11 4th Jul 17, 12:31 PM
    • 8 Posts
    • 0 Thanks
    nis11
    • #3
    • 4th Jul 17, 12:31 PM
    • #3
    • 4th Jul 17, 12:31 PM
    About £15000 / year
    • Candyapple
    • By Candyapple 4th Jul 17, 12:37 PM
    • 2,272 Posts
    • 1,736 Thanks
    Candyapple
    • #4
    • 4th Jul 17, 12:37 PM
    • #4
    • 4th Jul 17, 12:37 PM
    £15K a year salary with £11.3k debt and you want to take out an additional £20-25k of debt?!

    Ignore your credit score, it's just a marketing tool.

    Even if you wipe off £3k from your total debts, you would still owe over half your annual salary on debts (£8.3k). Although note, if you paid the £3k off your debts, you would need to wait at least 2, possibly 3 months minimum for the balance to be updated and info relayed back to all 3 credit reference agencies.

    Of course the lower your debt is the better chance you have of being accepted, try entering your details here:
    https://www.moneysavingexpert.com/eligibility/loans-calculator/
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • nis11
    • By nis11 4th Jul 17, 12:46 PM
    • 8 Posts
    • 0 Thanks
    nis11
    • #5
    • 4th Jul 17, 12:46 PM
    • #5
    • 4th Jul 17, 12:46 PM
    Obviously some part of the loan would go to pay off the whole depth.

    Would you advise to go for this 11.9% APR offer?

    Possible I will just try to get about £15000 - 20000.
    • Candyapple
    • By Candyapple 4th Jul 17, 1:04 PM
    • 2,272 Posts
    • 1,736 Thanks
    Candyapple
    • #6
    • 4th Jul 17, 1:04 PM
    • #6
    • 4th Jul 17, 1:04 PM
    Obviously some part of the loan would go to pay off the whole depth.

    Would you advise to go for this 11.9% APR offer?

    Possible I will just try to get about £15000 - 20000.
    Originally posted by nis11
    It's debts, not depth.

    So this will be a consolidation loan? Those are generally never a good idea because you never tackle the root cause of what caused the debts in the first place.

    I would suggest writing your statement of affairs and posting it over on the DFW boards for advice:
    http://www.stoozing.com/calculator/soa.php
    http://forums.moneysavingexpert.com/forumdisplay.php?f=76

    I know you mentioned the rate of 11.9%, note that this is just a quote and a full hard credit search would need to be done first and I imagine that once Natwest did that, you would either be declined full stop or the rate would increase drastically to something silly.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • davidwood123
    • By davidwood123 4th Jul 17, 1:19 PM
    • 450 Posts
    • 1,124 Thanks
    davidwood123
    • #7
    • 4th Jul 17, 1:19 PM
    • #7
    • 4th Jul 17, 1:19 PM
    In my opinion you won't get a loan
    • PeacefulWaters
    • By PeacefulWaters 4th Jul 17, 1:25 PM
    • 6,852 Posts
    • 8,441 Thanks
    PeacefulWaters
    • #8
    • 4th Jul 17, 1:25 PM
    • #8
    • 4th Jul 17, 1:25 PM
    What are you doing to kick your overspending habit and reliance on debt?
    • DCFC79
    • By DCFC79 4th Jul 17, 3:05 PM
    • 29,965 Posts
    • 18,978 Thanks
    DCFC79
    • #9
    • 4th Jul 17, 3:05 PM
    • #9
    • 4th Jul 17, 3:05 PM
    Obviously some part of the loan would go to pay off the whole depth.

    Would you advise to go for this 11.9% APR offer?

    Possible I will just try to get about £15000 - 20000.
    Originally posted by nis11
    If you were to get the new loan whats to stop you splurging the 15k/20k on a new car, a holiday, expensive clothes. Theres no guarantee you would use it to pay off the loan,

    I dont see you will be successful.
    Last edited by DCFC79; 04-07-2017 at 3:11 PM.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Tarambor
    • By Tarambor 4th Jul 17, 7:36 PM
    • 1,160 Posts
    • 803 Thanks
    Tarambor
    Not a cat in hell's chance. Even at a low APR of 2.9% repayments over 60 months are going to be at least £450. Your take home is just over £1100 so the repayments would be 40% of your take home pay so you have absolutely no chance in hell of passing an affordability test.

    And that is before existing borrowing is taken into account because it will be due to the high number of people who get consolidation loans only to not pay the stuff off or re-use the freed up credit to dig a bigger hole.
    • Mobeer
    • By Mobeer 4th Jul 17, 8:24 PM
    • 1,696 Posts
    • 4,369 Thanks
    Mobeer
    If you do get that 3k, use it to pay off the overdraft and part of the balance on the highest APR credit card. Then work on paying off the remaining credit card debt.

    Once that's done, then consider whether you want to get back into debt again.
    • Shakin Steve
    • By Shakin Steve 4th Jul 17, 8:39 PM
    • 936 Posts
    • 665 Thanks
    Shakin Steve
    Jeez....those figures are scary. I would be papping myself if I owed that much on your salary. Please don't dig an even bigger hole for yourself, you could will still be regretting it in ten years.
    I came into this world with nothing and I've got most of it left.
    • Edi81
    • By Edi81 4th Jul 17, 9:33 PM
    • 274 Posts
    • 161 Thanks
    Edi81
    What are you planning on using the extra £10k for?

    You need to address your debt situation - head to the debt free wannabe board for help on budgeting better.
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