Loan Questions

rx8al

Hi guys, I currently have a car that is worth around 7K with finance outstanding of 9k, its costing me a bomb in petrol, so I wanted something much economical - the alternative would be a couple of grand more, but it would soon pay off (including servicing bills etc etc).

My question is, I want to go for a personal loan if i can this time as opposed to car finance, as its cheaper.

I am 20, I earn a decent wage and have been in my current job for over 2 yrs.

I have 2 credit cards, 1 with 5k o/s on an 11k limit (interest free for about 9 more months) and the other one has a 3500 limit and has nothing on it. I am gradually paying off the interest free, and will easily have cleared that by the end of the interest free period.

My credit is all good, I have a 999 rating on experian (i know this doens't mean much, but at least i have never missed a payment etc).

I applied for a barclays loan today, and got declined. They have not given me a reason, but are apparently going to write to me..

Any ideas where to go? I put on the app form that it was debt consolidation (because i would be paying off my other finance agreement etc).

~Beanie~

So how much was the loan for that was declined?

Are you on the electoral register at your current address?

rx8al

The loan was for 11K - with the view that I would pay off the current finance, and buy the new one (also plugging the gap of 2k).

I have been on the voters roll for just under 3 yrs (oct 05 actually) - and havent moved address for years..

Thanks

rx8al

Anyone else have any ideas?

Thanks

TheKeyMaker

OVER-COMMITMENT - The bank think (and might be right) that you already are stretched on your financial commitments and won’t be willing to borrow you more.
Based on your list above, I think that that might be a legitimate concern.

rx8al

Thanks for your response, the way i see it, is I will be clearing off my current car loan.. so will only be borrowing around 2000 more than I am now, and secondly, I will have it over a 4 yr term (so my outgoings will in fact be less!)

rx8al

It will be less debt than that, I reckon about 14k - but your right.. it is a lot of debt. The 11K limit on the CC is what I was offered. I have reguarly used and regulary cleared off CC since pretty much as soon as i was 18, my 2 cards are with HBOS (1 hal 1 BOS), and they are happy with my credit, would it make sense trying through them? Or would having 3 bits of credit put them off, especially with what they are upto at the moment with Lloyds? Thanks for your help so far