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  • FIRST POST
    • falafel
    • By falafel 6th Feb 18, 12:58 PM
    • 8Posts
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    falafel
    Debt/Loan Eligibility questions
    • #1
    • 6th Feb 18, 12:58 PM
    Debt/Loan Eligibility questions 6th Feb 18 at 12:58 PM
    Hi - Apologies re-posting separately as I couldn't figure out earlier how to post a new thread!

    Iím looking for any advice on personal loans, as Iím a little new to all this but really want to find a way to pay off an old debt.

    As a background, Iíve lived in UK for about 5 years and am self-employed Ė earning around £35k a year. My wife has lived here the same amount of time, but has a full-time job earning about £32k.

    1) my wife has credit card debt of about $15,000 Canadian (from many years back now, when she admittedly was young and mis-spent!) Ė she has been paying of minimum amounts for years, but itsí now time to try and get rid of this.
    2) We have good credits records in the UK (as her debt is back in Canada), banks accounts, credit cards that have never been behind on debt and no other debt.
    3) We were wanting to take a personal loan of around £7.5k to consolidate that Canadian credit card debt, and pay off the loan over 36-42 months. Hoping for a reasonably low APR. (in anycase lower than whatever the Canadian credit card charges)

    Given Iím self-employed the loan would probably just come from my wifeís name?

    Currently when we fill out loan eligibility test on MSE etc. it comes to a 30% chance of the Sainsburyís loan at 3.9% - most of the others are 10% to 0% chance.
    This doesnít leave me very hopeful! I donít really want to start applying for loans if they are not going to be accepted, or accepted at quite high rates only, as I know hard searches can impact credit scores.

    Would it be better to try with our bank (we have joint accounts with Co-Operative) or credit card institution (Halifax)? Or does that not make a difference

    Appreciate any suggestions
Page 1
    • Candyapple
    • By Candyapple 6th Feb 18, 1:17 PM
    • 2,663 Posts
    • 2,002 Thanks
    Candyapple
    • #2
    • 6th Feb 18, 1:17 PM
    • #2
    • 6th Feb 18, 1:17 PM
    Why such a low percentage for loans? Do you two have a lot of other debts or something?

    Please answer below for yourself and also your wife:

    Do you have any joint bank accounts / mortgages?

    Please list all credit card limits along with outstanding balances.

    Do you have any other loans / overdraft / car finance etc?

    Do you have any late payments / defaults / CCJs?

    Are you on the electoral roll (does it show on all 3 files?)

    Do you have any other closed / settled accounts in your history?

    Do you have many other 'credit' accounts showing on your files such as bank account / mobile phone etc.?

    Have you made any credit applications in the last 12 months?
    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
    • DCFC79
    • By DCFC79 6th Feb 18, 1:27 PM
    • 30,942 Posts
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    DCFC79
    • #3
    • 6th Feb 18, 1:27 PM
    • #3
    • 6th Feb 18, 1:27 PM
    Credit scores aren't seen by anyone else except except you, lenders don't see the score.
    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.
    • falafel
    • By falafel 6th Feb 18, 1:46 PM
    • 8 Posts
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    falafel
    • #4
    • 6th Feb 18, 1:46 PM
    • #4
    • 6th Feb 18, 1:46 PM
    Why such a low percentage for loans? Do you two have a lot of other debts or something?

    Please answer below for yourself and also your wife:

    Do you have any joint bank accounts / mortgages?

    Please list all credit card limits along with outstanding balances.

    Do you have any other loans / overdraft / car finance etc?

    Do you have any late payments / defaults / CCJs?

    Are you on the electoral roll (does it show on all 3 files?)

    Do you have any other closed / settled accounts in your history?

    Do you have many other 'credit' accounts showing on your files such as bank account / mobile phone etc.?

    Have you made any credit applications in the last 12 months?
    Originally posted by Candyapple
    No other debts. We have 2 joints accounts (since 2014) and no mortgages.
    Have 2 credit cards with limits of £4750 and £7500. No outstanding balance outside the monthly usage. Never fallen behind on these either.
    No Overdrafts etc.
    We are both on electoral roll as far as I know. (i should double check this)
    Have credit accounts with mobile phone.
    No applications in the last 12 months/ever.
    When i did a credit score check for myself it came as good/excellent - my wife's credit was good also. The % i mention is from loan eligibility tools on MSE
    • Candyapple
    • By Candyapple 6th Feb 18, 1:49 PM
    • 2,663 Posts
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    Candyapple
    • #5
    • 6th Feb 18, 1:49 PM
    • #5
    • 6th Feb 18, 1:49 PM
    The free versions to check your credit files are below:
    Experian: www.moneysavingexpert.com/creditclub
    Equifax: www.clearscore.com
    Call Credit: www.noddle.co.uk

    Are all your bank accounts / mobile phone / credit cards / electoral roll etc all showing for you both?

    Given both your salaries and going by what you've said, something appears to be in your credit history that is preventing you from getting a high percentage for loan application, especially for such a small amount. You need to go through them with a fine tooth comb and find out what it is.
    Last edited by Candyapple; 06-02-2018 at 1:55 PM.
    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
    • falafel
    • By falafel 6th Feb 18, 1:52 PM
    • 8 Posts
    • 0 Thanks
    falafel
    • #6
    • 6th Feb 18, 1:52 PM
    • #6
    • 6th Feb 18, 1:52 PM
    Ok thanks alot, I was very surprised also.
    We haven't done a proper CC for my wife's history - so will use those websites.
    • Candyapple
    • By Candyapple 6th Feb 18, 1:55 PM
    • 2,663 Posts
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    Candyapple
    • #7
    • 6th Feb 18, 1:55 PM
    • #7
    • 6th Feb 18, 1:55 PM
    Have you tried your luck with a money transfer card instead? If you went with MBNA they historically give large limits so you may find that you don't even a need a loan. What do the results show?

    https://creditcards.moneysavingexpert.com/?money-transfers&_ga=2.7777138.1326189476.1517825568-1969417388.1516998791
    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
    • enthusiasticsaver
    • By enthusiasticsaver 6th Feb 18, 2:39 PM
    • 5,705 Posts
    • 11,302 Thanks
    enthusiasticsaver
    • #8
    • 6th Feb 18, 2:39 PM
    • #8
    • 6th Feb 18, 2:39 PM
    Have you looked on Noddle to see if anything comes up? Your self employment may be a factor as lenders generally assume unpredictable income.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • dresdendave
    • By dresdendave 6th Feb 18, 4:12 PM
    • 709 Posts
    • 847 Thanks
    dresdendave
    • #9
    • 6th Feb 18, 4:12 PM
    • #9
    • 6th Feb 18, 4:12 PM
    With joint income of £67k and no other debts, could you not just live frugally for a few months and throw as much as possible at the CC until it is gone? Seems better than just replacing it with a new debt, albeit on better terms.
    • falafel
    • By falafel 6th Feb 18, 9:47 PM
    • 8 Posts
    • 0 Thanks
    falafel

    Are all your bank accounts / mobile phone / credit cards / electoral roll etc all showing for you both?

    Given both your salaries and going by what you've said, something appears to be in your credit history that is preventing you from getting a high percentage for loan application, especially for such a small amount. You need to go through them with a fine tooth comb and find out what it is.
    Originally posted by Candyapple
    Thanks for your reply earlier. My wife just did the credit check on Noddle. It comes to '639 and 5/5' - i know the score doesn't mean anything, but there are no real holes in the report. 1 credit card, 1 phone bill and 2 bank accounts. Still showing as 30% elgibility as the highest. Maybe there isn't enough credit history?

    A seperate question - I thought the soft searches on MSE etc for loan/credit card eligibility, dont show up on credit reports, but it seems they do. Is that a problem?
    • zx81
    • By zx81 6th Feb 18, 10:11 PM
    • 15,534 Posts
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    zx81
    They only show to you. Not lenders.
    • BrassicWoman
    • By BrassicWoman 7th Feb 18, 6:58 AM
    • 1,459 Posts
    • 6,207 Thanks
    BrassicWoman
    I'm confused, I cannot see what you are consolidating. You have only one debt and you are just looking to move it?

    Start paying a lot more than minimum. Do you know what the interest rate is and how steady has the exchange rate been? You don't want to shift currencies and make it worse!
    Jan 18 grocery challenge £105.13/ £150
    • Candyapple
    • By Candyapple 7th Feb 18, 11:43 AM
    • 2,663 Posts
    • 2,002 Thanks
    Candyapple
    Thanks for your reply earlier. My wife just did the credit check on Noddle. It comes to '639 and 5/5' - i know the score doesn't mean anything, but there are no real holes in the report. 1 credit card, 1 phone bill and 2 bank accounts. Still showing as 30% elgibility as the highest. Maybe there isn't enough credit history?
    Originally posted by falafel
    It could be if everything else seems to be ok. As I stated above, try for a money transfer card instead.


    I'm confused, I cannot see what you are consolidating. You have only one debt and you are just looking to move it?

    Start paying a lot more than minimum. Do you know what the interest rate is and how steady has the exchange rate been? You don't want to shift currencies and make it worse!
    Originally posted by BrassicWoman
    $15k Canadian is roughly £8.5k. That's easily do-able on a 0% card with their salaries individually. I would imagine the Canadian debt is incurring interest and regardless of favourable exchange rates that having it cleared and paid off and the debt transferred to a 0% card in the UK would be a lot easier plus the benefit of having it one place and not having to worry about possibly keeping open a Canadian bank account just to pay money into it to pay towards the debt, or worse still, using a UK bank account and paying foreign exchange fees for making payments to the Canadian loan company thus incurring extra costs.
    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
    • falafel
    • By falafel 8th Feb 18, 10:44 AM
    • 8 Posts
    • 0 Thanks
    falafel
    It could be if everything else seems to be ok. As I stated above, try for a money transfer card instead.
    Originally posted by Candyapple
    Thanks a lot for your replies and suggestions. It seems when I do the eligibility tests for balance transfer credit cards or the loans they come up with 80% chance. So perhaps it is to do with my wife not having enough credit history over the last few years. We will probably just try to do this from my name then.

    The suggestion of a balance transfer card is actually probably ideal, as I guess if you pay it within the 30 months (or stipulated period) you basically have borrowed for free?

    One last question - Can you transfer balance from an overseas credit card (mastercard) into a UK 0% mastercard in the same way as it would operate if both UK cards? I assume so with probably some FX transaction fee?

    Thanks again
    • zx81
    • By zx81 8th Feb 18, 10:45 AM
    • 15,534 Posts
    • 16,480 Thanks
    zx81
    Can you transfer balance from an overseas credit card (mastercard) into a UK 0% mastercard in the same way as it would operate if both UK cards? I assume so with probably some FX transaction fee?
    Originally posted by falafel
    No. UK only.

    You really do need a money transfer card, not a balance transfer card, as mentioned a few times above.
    • falafel
    • By falafel 8th Feb 18, 11:18 AM
    • 8 Posts
    • 0 Thanks
    falafel
    Right, i see the difference (money v balance transfer card )now!
    Cheers
    • lizphilip8
    • By lizphilip8 12th Feb 18, 11:36 AM
    • 3 Posts
    • 0 Thanks
    lizphilip8
    "Have you got any loans in the past?"

    This question is mainly asked to judge your ability to repay. You can even mention about a contract mobile phone you probably would have brought in the past.

    If you have gotten a loan and paying it on time, its a good thing.
    • falafel
    • By falafel 12th Feb 18, 12:06 PM
    • 8 Posts
    • 0 Thanks
    falafel
    So ended up getting a moneytransfer card (VirginMoney - 25 months @ 0%) with a credit limit of £8,800 in my wife's name. Interestingly though, despite the MSE eligibility check saying she was not eligible for this card, she was eligible to get the card from Virgin.

    Thanks for all suggestions/comments/help
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