advice please experts,whats happening im lost

thewinkshow

hi im looking for a little advice,im really frustrated with finance companies in general at the minute,here goes,i got a 6000 loan 13 months ago with AL,i never missed a payment or been late whatsoever with them,i now over 5000 with them,im currently 1500 in my overdraft(max) im looking to clear it,my intentions are to get a £8500 loan to clear my existing loan of £5000 and 1500 on my overdraft and pay my car insurance up for the year this is 1000 pound this leaves me with 1000 which i want to add to my current car which i own(bought it with the AL loan last year)if all if well i will pay £170 out for my new loan a month and £80 keep to my mother,so that outgoings of £250 a month,i earn £1000 a month so ill have a nice bit of money to play around with and can then start to saving money and basically being a bit more mature.the problem

i applied for the new loan with egg as i hear they were a o.k lender,my credit rating isnt the best because of my age i think.anyway i got accepted in principal then the forms came,they wanted to see my bank statments which i didnt have,so i ordered them from my bank and had to pay 18 pound for them when they came they were wrong,3 statments for the same month,the bank gave me a temporary photocopy that egg declined,i asked for my offical statments again this time they sent 1 statment showing 1 month,so it starts dragging on, i finally get the statments and send them to egg,they send them back and say due to the wait they need the next month statment as they have to be current,i ordered this from my bank sent it to egg and thought everything was fine.i get a call from egg a few days later,i assume as it had been going on so long that they were just ringing to confirm a date to dispatch the money,oh no,they say that for sum reason 2 loans for the exact same amount were opened on the same day i applied,they cudnt give me any reason why,they then say the 2nd loan cancells the 1st so i currently have no loan with them,this had been going on 3 weeks at the time so you can understand my frustration as most people have the money within a week,i have friends who got a loan will egg whilst being un-employed and didnt have to send any bank statments,they lied that they were employed basically,so they got it so easy,here me been in same job 2 years,same house 8 years,ive got 3 direct debits ive never been late or missed a payment ever on anything and there been very touvhy with me,it doesnt add up.
so im told to re-apply online with them,i do this and get a call im told i cant open up a loan as i alreadly have 2 loans with them,i explain that it was there mistake e.c.t,they close both loans and tell me to re-apply online,i do this and get declined,at this point im getting !!!!!! off,i ring them to expain that i have been declined even though i was accepted just days before,im told there is nothing they can do and 2 try again in 12 months,i ask to speak to the manager,who i have a chat with for 2 hours she then opens me up a loan the same as the original,the agreement comes in the post so i sign and send it back with my statments,i ring them to see how its going and im told that due to me being nearly at my overdraft limit they consider me too much a risk so i got declined,my argument was that they knew 3 weeks ago how much i was in my overdraft and the loan was to sort this out,also they had alradly seen my statments previously so why didnt they tell me then,why let me spend money and time getting statments for them?

as a last resort i went to my bank,i have been accepted so thats the main thing but the rate isnt as good,it 10% im considering it,i will probley end up taking it due to lack of options because ive tried serveral places and all declined me.

this lead me to get my eperian credit report to see what was going on,as i belived there was a problem on it because of all the declines
i get it and it shows my 3 direct debits my existing loan being one of them,ive never missed any payment whatsover or been late,im on the electoral register,been in current job 2 years,im 21 years old,no credit cards or any other debt whatso ever

so my report came back with no defaults and seemed generally very good no bad points on it really

but my other report the credit score came back at 572 out of 1000 this was considered poor and said id probley had defaults and things to get a score so low,but ive not at all


can anyone at all please advise im trying to take steps to get things right yet every conner i turn im getting turned down,ny report does make sense,why is it so low?how do i make it better?i think my only option is to take the 10%loan

thanks in advance any advice welcome please ak if you need any more info

rob

tango

The WinkShow,your Lost, i'm lost!
There is a lot to take in, first the loan is that a good idea,are you putting your insurance on a loan?
Your loan application process seems unusal regarding the two applications to say the least
I think you need to take a step back post your SOA,and get some help and advice,before taking out the loan.

nomoneytoday

Debt consolidation = bad
Snowballing = good

maforduk

Firstly, your poor credit rating is down to Egg doing ALOT of searches on you because of the multiple applications. This seriously impacts your 'score'.
Secondly, save up and pay your loan off early, don't get another loan just to consolidate.
Ask your mother to pay for your car insurance if she can and you can pay her back interest free as you have about £700 left every month to play with.

mountainofdebt

And welcome to MSE.

Firstly It would be a really really bad idea to get another loan to pay off another loan - listen to someone who's been there and got that aparticular t-shirt.

It would also be a bad idea to get a loan to pay off yoru car insurance. You will effectively be paying for a years card insurance over the term of the loan. Not a good idea because what happens next year? Another loan? As someone has said, if your mum can afford to lend you the money interest free then I would take that option - at worst I would opt to pay monthly with your insurers.

As for the overdraft - we managed to pay off a £3000 overdraft by following some simple rules :

1) Work out how much your dds are each month

2) Wait for the bank to tell you each month what the month charges are

3) Decide how much you can pay off your o/d each month - If you have a surplus of £250 each month, then perhaps £75 per month is a realistic figure?

4) Wait until payday

Then withdraw from your bank account a sum equivalent to your salary minus the sum of the figures in 1 & 2 & 3

5) Only spend the money withdrawn - nothing else.


Once cleared reduce your overdraft limit as this will not only increase your credit rating but remove the temption to spend on it again.