Should I apply for 2 loans at the same time? Help please!!

simmo76

I am considering a consolidation loan to clear credit card debt (I am getting married next year and really need to get on top of the payments!).

I have read in a magazine a few years ago that if you apply for 2 loans on the same day that when they check your credit rating both searches don't show therefore giving you more options if you think you may get turned down by one. Rather than applying for one, being turned down and trying a second (the previous search shows to the 2nd lender who then turn you down for looking desperate!).

Does anyone know any more about this?

I have 4 cards all close to their limits (debts totalling 13.5K) but no missed payments or arrears or CCJs etc on my credit score. I am on the electoral register and a home owner in full time employment (earning 33K). I tried to get a 0% card (Abbey)to transfer some of the debt to but got turned down 3 weeks ago.

I bank with the Halifax and was going to apply to them once a month had passed from the Abbey application (according to their website they will only consider you if you've not been turned down for credit in the previous month). But I also wanted to try Sainsburys for the keener interest rate.

I'm really not sure what to do.....just try Halifax or apply for both the same day and see which one (if any!) I can get. Also do I try for the full 13.5K or a smaller amount (10K) to pay off the higher interest rate cards? (I have one card with Citibank which I have frozen with a reasonable life of balance transfer interest rate, 3.5K)

If anyone has any advice, it would be greatfully received!!!!:j

StuTheDon

simmo76 wrote: »

I am considering a consolidation loan to clear credit card debt (I am getting married next year and really need to get on top of the payments!).

I have read in a magazine a few years ago that if you apply for 2 loans on the same day that when they check your credit rating both searches don't show therefore giving you more options if you think you may get turned down by one. Rather than applying for one, being turned down and trying a second (the previous search shows to the 2nd lender who then turn you down for looking desperate!).

Does anyone know any more about this?

I have 4 cards all close to their limits (debts totalling 13.5K) but no missed payments or arrears or CCJs etc on my credit score. I am on the electoral register and a home owner in full time employment (earning 33K). I tried to get a 0% card (Abbey)to transfer some of the debt to but got turned down 3 weeks ago.

I bank with the Halifax and was going to apply to them once a month had passed from the Abbey application (according to their website they will only consider you if you've not been turned down for credit in the previous month). But I also wanted to try Sainsburys for the keener interest rate.

I'm really not sure what to do.....just try Halifax or apply for both the same day and see which one (if any!) I can get. Also do I try for the full 13.5K or a smaller amount (10K) to pay off the higher interest rate cards? (I have one card with Citibank which I have frozen with a reasonable life of balance transfer interest rate, 3.5K)

If anyone has any advice, it would be greatfully received!!!!:j

Simmo - consolidation rarely works I'm afraid. What happens to most people is that they get down to one lower monthly payment and start using cards again and before you know it you have another 13k on cards. Its a really slippery slope.

It is much better to order your cards by the highest APR and focus on paying them off. Sell stuff on EBay, cut down on things like Sky and get rid of the debt or you never will.

The problem you will have is that you already have a high amount of available credit (13k) - you are about to apply for another 13k which will take you to 26K available. Now, you say you are going to pay off the cards, but the banks have no guarantee you will do this and I think you will be turned down. This is confirmed by the fact you were turned down for a card which is not going to be the same amount as you are asking for.

Sorry to be the bearer of bad news - get yourself onto the Debt Free forum for more advice.