why has my bank refused me?

glenandemm

hi guys quick question,i have a loan already with natwest and its only got a yr left to run,so i thought with the credit card debts i have id put them all together with my existing yrs worth of loan into a new loan which the payments work out something £15-£20 a month cheaper and i dont have credit cards on top with interest,ive never missed a payment but my credit cards are near theyre limit but not over,now the bloody bank have refused me on affordability,how can that be when the loan payment will go down every month and i wouldnt of had any credit cards with debt left?

ScRiMpNsAvE_2

I'm not sure I fully understand... However, from what I gather you're asking, they won't have considered what you intend to do with the money when making the decision. They will purely look at a snapshot of your current financial situation.

From what you've mentioned, you have multiple credit cards all near their limits (meaning you are using a large percentage of you available credit), and an existing unsettled loan. On paper you would be considered high risk, especially in the current climate.

Are you currently struggling to meet payments, or did you want to do this purely for convenience?

CLAPTON

what's your total debt?
what's your income?
how much did you apply for?

glenandemm

hi guys basically i had a loan for £17000 but have about a year left with about £5500 left to pay,i have about £9500 of credit card debt and would like to put this all together and renew my loan for £15000 so its easier for payments and interest etc,i have never defaulted on either loan or credit cards,when i went through the application with the bank they asked what the loan was for and i told them it was for debt consolidation,the new payments would have been cheaper and they tell me i cant afford it on affordability!

Jacks_xxx

Hiya hon, :wave:

It's a much different economic and financial climate from when you first took out the last loan and banks are trying to be more risk averse.

If you lost your job in the next few months - as half a million people in this country are going to - how would you afford the debt then?

I think the bank must be aware that while people who consolidate debt with more debt used to be considered cash cows to be encouraged - in the current job market they are considered much more of a risk.

Love Jacks xxx

CLAPTON

and your income?

theartfullodger

Sigh!

Clutton asked
===========
what's your total debt?
what's your income?
how much did you apply for?



===========

Do I conclude Total Debt £15,000 ????
Income ??? FK
How much did you apply for ? £15,000???

Gissa hint, please??

Cheers

Lodger

Robert_Sterling_3

If your credit card debts get added to your bank loan then you can start building up your credit card debt again.
The [strike]bloody[/strike] bank is being bloody prudent.

Teacher2301

Just try applying for a new credit card and you'll see the impact of the credit crunch - no bank is willing to part with money yet (the so called fiscal stimulus has yet to have a ripple effect on us - the poor taxpayer who stumped up the funds in the first place).

Perhaps a SOA would help others to see your situation and let them give you some constructive advice - it'll take time I know but many on the debt free wannabe's board are a wealth of knowledge - so better posted there than on the loans board.

freeoffers

The bank does have a right to refuse to give you a loan. Why not try other banks?

max2009

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