Getting a loan with a Fair rating

matty022000

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hi, this is my first time on any chat forum, so forgive me if im going about it in the wrong way, or im in the wrong place. Ive been down the road of getting a loan to pay off the dreaded credit cards, then run them all up again. i have learnt my lesson, and promise to cut the damb things up, however due to a few late payments (never missed, just late) my credit rate has gone down. Ive just checked with Experian, and it gave me 786 on the credit score, and rated me fair. which i guess isnt that good. i want to borrow £25000. which will clear both mine and my wifes total bills, but dont want to completely trash my rating by applying for a loan that i know will be refused. So does anyone know which companies are more likely to agree that amount, without really charging over the odds. Most of the debt i want to clear is above 16%apr, except 1 loan which is only 7%; so i could leave that as it is and borrow £15000 to clear the rest. I really have learnt my lesson, and the cards will go, even if i have to post the bits to Martin to prove it. Any ideas. Thanks

jonesMUFCforever

First port of call may be your bank who know better than anyone your state of affairs.If they turn you down then take care as too many applications in a short period of time will further hurt your credit score.

matty022000

thanks. will give them a go

MSE_Martin

If you go to my loans article you'll see special notes on what to do with a less than perfect credit score

Rafter

Matty,

Your earnings may come into play here too, as will the credit appetite of some banks at the moment.

If the full £25k is more than about 2/3 of your salary, you may fall foul of 'affordability' measures used by the banks.

A secured loan (if you own your own house) should be used as a last resort but may be your only option.

As you point out, the key is getting your APR down, getting a monthly budget sorted and ripping up all those credit cards so that the temptation to fill them up again is removed.

Good luck.

R.