Declined Loan

Marker_2

My husband and I have just been declined a joint loan by HSBC. We really need this loan topay off everything, so im abit upset.

Ive just rang them to discuss it as the letter states 'the credit score on your recent application was not high enough' and 'this did not result in us declining your application'. The guy I spoke to said basically that humans dont make thedecisions but a system -so am unable to speak to anyone whos in the position of over turning this decision.

Is this correct, is there no one inHSBC bank that can over turn this decision?

I was advised to reaply in 6 months, bit to late then!!!!!

CLAPTON

Without knowing your circumstances its difficult to comment
However, getting a loan isn't paying off everything but simply transferring the debts elsewhere.
You can write in a ask but its fairly unlikely you'll get very far.

Whats your income?
what are your debts?
are your credit records perfect?

maybe its best to consider the causes of your debts and address the issues that way..

moggylover

Marker wrote: »

My husband and I have just been declined a joint loan by HSBC. We really need this loan topay off everything, so im abit upset.

Ive just rang them to discuss it as the letter states 'the credit score on your recent application was not high enough' and 'this did not result in us declining your application'. The guy I spoke to said basically that humans dont make thedecisions but a system -so am unable to speak to anyone whos in the position of over turning this decision.

Is this correct, is there no one inHSBC bank that can over turn this decision?

I was advised to reaply in 6 months, bit to late then!!!!!

Not sure what the answer to that is: but I don't thing that managers actually make those sort of decisions these days, and thus the guy is probably right and it is a case of "computer says".

Banks are often not the cheapest lenders anyway - take a look at the cheap loans section and let someone like MoneySupermarket.com pick a lender who will be likely to accept you and see what that would cost.

Hope you get the help you need - it's a pain when you plan something out and know it is the right way for you to go, and then someone scuppers the plan.

Might also be worth having a look at your credit ratings;)

Marker_2

CLAPTON wrote: »

Without knowing your circumstances its difficult to comment
However, getting a loan isn't paying off everything but simply transferring the debts elsewhere.
You can write in a ask but its fairly unlikely you'll get very far.

Whats your income?
what are your debts?
are your credit records perfect?

maybe its best to consider the causes of your debts and address the issues that way..

Joint Income is 42k
Debts are around 8k
The are not perfect but they are not really bad, majority of bad credit a few years ago on my husbands side.


Thanks moggy, will sit down tonight and take agood look at this site

CLAPTON

With an income of 42k, I would have thought that a debt of 8K was manageable.
It may be better to just try to transfer some of the debt to 0% or low LoB CCs rather a single loan.
I'm not sure what you mean 'not really bad' .. is that defaults or just a few missed payments ?
Do you have a proper budget? this link is a good one to start with

http://www.makesenseofcards.com/soacalc.html

Marker_2

CLAPTON wrote: »

With an income of 42k, I would have thought that a debt of 8K was manageable.
It may be better to just try to transfer some of the debt to 0% or low LoB CCs rather a single loan.
I'm not sure what you mean 'not really bad' .. is that defaults or just a few missed payments ?
Do you have a proper budget? this link is a good one to start with

http://www.makesenseofcards.com/soacalc.html

With all the interest we're paying on each we are finding it really hard making ends meet, especially when lifes curve balls come flyng in, which has been alot recently. We wanted to consolidate it all so its i one place with one payment.

No defaults, just a few late payments.


Thanks for that link

mrcow

Have you thought of applying to MBNA or similar for a 0% credit card?
They are offering 0% until March 2010 with a 2.9% handling fee. You certainly used to be able to transfer to your bank account (may still be able to - check with them) and can certainly use to pay off any store or credit cards. I like them as they offer quite generous credit limits.

Edit: lol just seen your siggie there are loads of other 0% deals out there too though

You'd need to start looking around for other deals around New Year (we financed our car this way and just shop around when the deal is due to expire).

You can set a reasonable standing order payment up to pay them on a set date what you would like too so it's easy peasy.

Marker_2

Is getting a credit card, with say 5k limit better than trying to get a10k loan to consolidate and try and pay offeverything?

CLAPTON

Tere is no specific merit in having 'everything in one place' like in the ads on the TV
Without knowingthe size of the debts, the APRs and the minimum monthly payments and what you can afford to pay in total each month, your question can't be answered.
If you can get a cheap (low APR) loan for the whole amount then maybe that's best; if you can transfer your highest APR debt to a 0% CC then maybe that's good too; without the info it's difficult to tell.

Marker_2

What do you need to know, i bare my soul lol.

If HSBC had accepted our loan then we would be paying £320 pm for 36 months, think it was 9.9%. That would of suited us fine, exactly what we wanted

CLAPTON

no need to bare the soul but a simple list of
debt amount, APR and minimum monthly payment

.. you could try playing with the snowball calculator
http://www.whatsthecost.com/snowball.aspx