Loan/Credit Rating Advice

Ktharry

Hello

I'd really appreciate some advice if poss before I pull all of my hair out...

I've recently decided to get a loan to consolidate credit card debts (approx 5k) to help reduce the amount of credit accounts I have and to lower monthly outgoings. however, I've been refused from several lenders..which susrprised me. i thought this may be due to living in more than 3 addresses over 3 years, although I've always ensured I'm on the electoral register at my new address. I've since checked my credit rating and was shocked to see it was Very Poor - i have a round 10k of debt but have only missed 1 payment in 33 mths of which the late payment fee was refunded as due to a genuine error online banking, I've been in full time employment in the same job for 4 years on a good sallary, I've been with same bank for over 5 years etc, this time last year my rating was Good!!! However, 16 searches are showing on my report for numerous things - some are due to drop off in August. I've been niave and kept reapplying for loans over the past month and this has added most of the searches (some search twice for quote, then application!!!). But now I'm guessing I'll never get any sort of credit with my rating so low. It seems so unfair that I'm being classed as someone who cant make payments and has CCJ's! I can afford to meet loan payments each mth but how to I convince lenders of this???

Any advice on how to improve my rating would be great - or is it just a case of waiting for searches to drop off. I thought consolidating debt would help improve my rating as I'd have left credit accounts. Does anyone know anywhere I can get finiancial advice re credit report and finnaces in general? Experian referred me to QDL but not sure - they sound a little dodgy and their website is pants!!!!

CLAPTON

-stop applying for any more credit
-wait until some of the searches drop off your report

-concentrate on paying as much as possible off your debts and attack in this order:
pay the minimum on all the debts except the one with the highest APR. on that one pay as much as possible until it's cleared, then attack the next highest APR and so on.

-learn to budget properly ..this is a good planner
http://www.makesenseofcards.com/soacalc.html

use it and find out where all your money is going.

-try to reduce your spending so you have more money to repay you debts faster
-consider getting a part time job to help repay the debts faster

Ktharry

Thank you! I kind of knew thats what I needed to do, it's just hard to make myself to do it. Have paid off one card already this week just by staying in for one weekend - its actually quite easy :-)

thriftymomma

ktharry wrote: »

Thank you! I kind of knew thats what I needed to do, it's just hard to make myself to do it. Have paid off one card already this week just by staying in for one weekend - its actually quite easy :-)

Good for you and good luck!:money: