decent loan?

jennyc_83

My friend and I are trying to get a loan of around 5k to make home improvements and so we can get a van to travel in. Now the loan would be in my name and up until now I have had great credit but recently, due to the available credit I had my score has dropped drastically. ive reduced all of that available credit yet your normal lenders are still saying no, which frustrates me as I was advised that doing so would mak my credit history appear more attracive. I've been contacted by a number of companies with silly interest rates (eg 51.9%) and I'm starting to lose the will! Are there any worthwhile companies out there that can help without charging the earth?

powned

in my experience they just aint lending.. ive even been refused loans at 25% apr from the greedy greedy chaps at 'egg loans' and my CR is good. funny enough i was after the money to but a van to travel in. ive even tried to extend a current loan i have with a/l... refused again. gunna try a couple of applications now. let you know if i have any luck... but i doubt it

Rafter

Have you tried your own bank?

You either don't meet the criteria for current lending, you have failed the 'affordability test' because of your income, outgoings or existing debt or there is something wrong with your credit history, 'available credit' is not usually a huge factor, but won't have helped.

What is your income and are you in full time employment? Is your mortgage payment high versus your income? Do you have any existing loans or credit card balances? How many loan 'searches' have you made in the last 3 months?

R.

jennyc_83

I actually work for my bank and its because of them i found out about my credit. When I spoke to experian and equifax, it WAS because of the amount of available credit I had (due to my high score previously, i've been given all this credit - funny that, surely they wouldnt have offered to a bad risk!) that people were cautious about lending because i could have then gone and used up all the available credita also. I, myself, not my credit cards, have reduced my availability by almost 17k which equifax advised would be the best thing to do, which i now wish i hadnt. In trying to be a responsible borrower and cancelling the credit I did not use or need I have now made it impossible to borrow any further.

my income is approx 1500 per month and my fixed outgoings are approx half of that. up untill a few months ago, i had lenders throwing themselves at me to give me a loan at stupidly low rates. what gives?

jennyc_83

any other suggestions guys? my risk rating has returned to normal with my own bank so perhaps other providers will follw suit?