Just been refused a consolidation loan

Dozmonster

First post here, but been a visitor for ages.
Fantastic forum / community.

Just applied to my bank (Yorkshire) and got refered (still waiting for a full answer) they advertised 10.9% and after the application whent through they told me that if successfull it would be 17.9%

after banking with them for 20 years having had 5 loans in the past and never defaulting on a payment.

So I left and went over the road to alliance and leicester, got refered there too and then a letter the next day saying no.

I owe about 11k with;
Egg loan 2.5k
egg card 3.5k
MBNA 2.5k
Barkley card 2k
visa 0.5k

I pay £370 PCM in interest alone.
I can easily pay £450 as I have been paying off £100 pcm to pay off a debt that a family member got me into when he discovered my pin number on a card i never used and didnt realise i had not destroyed the number (little scum bag)

I cant beleive my own banks attitude, I put nearly 30k a year through them.
I have emailed A & L to appeal but i don't hold much hope to the following angry rant

My Experian Report states

"Your score is 960. A score between 891 and 960 puts you into the Good category and means your credit status is above the national average. You are very creditworthy, usually make repayments on time and probably have few or no overdue accounts. This type of credit history is an asset that can help you get the deals you want and means you should pay lower interest rates than people with a poorer credit status."

So can somebody please explain how, if I have:
An above average credit score
Have a faultless history of repayment
An above average wage
Been in the same address for over 15 years
Been in the same job with local government for over 15 years
is seen as a credit risk???
All I want to do is borrow a sum of money, of which the repayments are less or equal to what I am being charged every month in interest alone.
This makes no sense.
I am paying this out every month, so why does your company not want my money?

Thanks in advance

Any tips on how i can get out of this as a consolidation rather than chipping away slowly like i am at the moment.
Card tarting is an option but I'm not too confident in my ability to get my head around it all.
thanks in advance
DM

PS not sure whats happening with the quote tags should be only 1 quote not split

Cash_Flow

IMHO you should of tried Tesco for the loan.

Dozmonster

I presume now the refusal is logged that its too late?

CLAPTON

I'm a little confused... to be paying 370 in interest on debts of 11,000 your average APR must be over 40% .. is that really the case?

Remember when you apply for a 11k of loan they 'see' you as having 11,000 + 11,000 i.e. 22,000 in total debt. (you may be intending to repay the CC debts but you're not obliged too.)

If you're only paying the minimum each month then that's seen as very high risk


Are you snowballing your current debts ..i.e. paying the minimum on each debt except the one with the highest APR and on that one pay as much as possible.

If Yourshire don't come up with a loan maybe trying for low life of balance CC or 0% BT cards will help reduce the interest so allowing you to repay much faster.

StuTheDon

It's nothing to do with your credit score and all about affordability.

At the moment you have 11K of debt and are looking for another 11k of debt to consolidate. The bank has no guarantee that you will actually use the loan to pay off your 11k debt, which would mean you could have debt of 22k. Against an annual salary of 30k that is not in the realms of affordability.

Of course you know you will pay off the debts, but many people get in the same mess again and so the cycle continues.

My advice is forget the consolidtion loan, prioritize your debts by APR, and work on paying them off.

StuTheDon

Clapton - you beat me to it - sorry about that :-)

nomoneytoday

I would shy away from further applications for the timebeing. Multiple applications throws your score down on the ground as they see you as desperate.

It's more of a concern that your own bank said no after so long. May be worth asking them to be more specific?

Dozmonster

CLAPTON wrote: »

I'm a little confused... to be paying 370 in interest on debts of 11,000 your average APR must be over 40% .. is that really the case?

Remember when you apply for a 11k of loan they 'see' you as having 11,000 + 11,000 i.e. 22,000 in total debt. (you may be intending to repay the CC debts but you're not obliged too.)

If you're only paying the minimum each month then that's seen as very high risk


Are you snowballing your current debts ..i.e. paying the minimum on each debt except the one with the highest APR and on that one pay as much as possible.

If Yourshire don't come up with a loan maybe trying for low life of balance CC or 0% BT cards will help reduce the interest so allowing you to repay much faster.

I see your point about the 11k + 11k
I foolishly thought they might trust my word :rotfl:

Dozmonster

nomoneytoday wrote: »

I would shy away from further applications for the timebeing. Multiple applications throws your score down on the ground as they see you as desperate.

It's more of a concern that your own bank said no after so long. May be worth asking them to be more specific?

I have not heard a deff' no yet but the interest rate is well out of order IMO

maninthestreet

Dozmonster wrote: »

I owe about 11k with;
Egg loan 2.5k
egg card 3.5k
MBNA 2.5k
Barkley card 2k :rotfl::rotfl::rotfl::rotfl:
visa 0.5k

:rotfl::rotfl::rotfl::rotfl::rotfl:

Dozmonster

maninthestreet wrote: »

:rotfl::rotfl::rotfl::rotfl::rotfl:

well that was constructive