Never lived anywhere longer than a year

Cashew

I think I am in a bit of a pickle.

I am a private renter, lvining in flatshares on 12 month leases (if there have been leases) for the past 7 years.

I am not sure of the dates and at most places was not on the electoral roll or paying council tax in my name, only to the landloard.

Also to confuse matters some of the time I was using my parents address (they have moved a couple of times in the last 7 years too) as my address for some of my bills and bank accounts whilst also using my current address at that time.

I applied for a loan recently and was turned down. I have since looked at my credit expert information and nothing is in arrears but the addreses don't really add up.

Does anyone have any advice of how I can sort this out?

What addresses can I use/should I use?

Will this hinder my quest for another loan?

Thanks

Rafter

Cashew,

You can try to get your address information changed by the reference agencies but that may not be the problem.

Address information is generally used as an identity check (your time at current address is something that someone committing identity fraud probably won't find out) and also to ensure the search covers your name at several properties, in case you have defaulted on loans at a previous address.

Purely by renting you will be seen as a worse credit risk than a mortgage holder or home owner.

Your ability to get a loan will depend on your income, type of job, outgoings, why you need the money and loads of other factors.

If you think you were turned down in error you can appeal the decision, but lenders are usually reluctant to be specific as to their reasons.

If you post back with income details, how much you planned to borrow, what your current debts are, reason for the loan etc, one of us will be able to give more specific advice.

Good luck

R.

Cashew

Thanks Rafter.

My income is £27,000.

I have a £6000 Natwest personal loan and £3,700 on a Natwest credit card and £1000 on an Egg credit card.

The total monthly repayments come to (£156 + £80 + £32) £268 for the three.

I need to get this down so was hoping to get another loan for about £11,000 to pay off all three and have a lower monthly payment over a longer period.

Does this sound possible?

Thanks.

Rafter

Not really.

You are currently borrowing 50% of your after tax pay roughly in unsecured debt. The loan company have no guarantee that you won't use the loan for something else other than paying off your current debts, or that you won't simply run up your cards again leaving you unable to service your borrowings.

I really wouldn't advise spreading your current debt over a longer period without first addressing the problem. That seems to be that you are spending more than you earn.

Generally borrowing to buy big things like cars or houses that are still worth something is good. Borrowing on credit cards to fund day to day things or holidays is bad news if you end up paying for this years wardrobe or supermarket bills over the next 5+ years.

I suggest you fill out a statement of affairs and then look at how you can budget or reduce your outgoings. Get martins book (money diet) for ideas.

Try to see if you can get hold of a 'life of balance' credit card and move your highest APR card to that.

Set yourself a savings goal each month or a date when you would like to be debt free.

Make sure you pay more than the minimum off each card each month and try to avoid spending on them all together and use your debit card only if you can.

Good luck

R.

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

Cashew

Oh dear.

Rafter wrote: »

Not really.

That seems to be that you are spending more than you earn.

I'm not any more but I was, hence the mess.

I will apply to a couple of places if that doesnt work I will have to try some other means of getting the loan.

Cheers.