I'm not sure where to turn next...

Carly_pi

Hi everyone
I need some advice. I basically need to borrow £5K to pay off my two existing credit cards (4.2K) and the rest for my overdraft. I tried to get a loan with Egg back in January everything was going through fine until it came to the way I was paid. I had cash cheques for a while so the problem with them was that there was no prove of money going in my account, so for the last 4 months I've had money paid directly in my account. I sent off for my credit reports 2 weeks ago, all came back really good (never missed a payment e.t.c) so I applied for Cahoot a couple of days ago. After about 10 questions they rejected me.

I only wrote off to the election role 3 weeks ago so I'm wondering if that is the reason why? Or perhaps because I’m a tenant? Other then that, I’ve stayed in the same job 3 years and I’ve lived in the same town for 9 years. Can anyone suggest where I go now? I was thinking of just applying with my bank (HSBC) even though the rate is higher then some I’m thinking least they know me. I'm desperate to actually pay off all that i own, the HSBC CC interest rates are killing me!

I’d be grateful for any advice!
Thanks
Carly

lynzpower

HI there - welcome to DFW!

I doubt that a consolidation loan will help you in the long run really, I have no idea though why youvbe been rejected for the loan, not my forte

Persoanlly, most of us are paying off more than 5k, just through making cutbacks and living as bit more within our means. If you post up an SOA ( see the sticky, first time posters) then this will help us see where savings can be made for you.

Lynz
x

southernscouser

Hi Carly!

First things first, why do you need a loan? I've been down the consolidation route about 3 times and it very rarely works. You keep the CC's and the OD and just run them up again. Even with the best of intentions it happens! :doh:

Perhaps if you post a SOA we can point you in a better direction than consolidation. The majority of times it works out alot better!

Have a look at this thread for a guide!

SS

MrsTinks

Well the electoral roll thingy usually take over 3 weeks to update so yes this would affect it As I found to my great irritation! I have NEVER defaulted on a payment etc etc etc but as I have moved a lot in the last few years it's tough to track me through the electoral roll. I got my Experian report and nothing showed up as odd at all until I asked for my rating... POOR! I called them to ask about this as I couldn't understand it and was told that it was partially because Lloyds TSB hadn't given them my full credit history (less than years worth was showing up... bloody bank!) and because I was not on the electoral roll where I live now. I have now contacted the electoral roll people with my details and also shouted at Lloyds TSB

With any luck I should within the next month or two go to Good or even excellent according to the advisors. It IS however worth rememebring that some companies don't take any note of any of this but decide themselves if they feel you fit their criteria. You can have a rgeat credit history but still be rejected. If you want to know why you COULD try contcating them and asking if they ill tell you why you were rejected

As for consolidation... ONLY do this if you cut up the credit cards and reduce your OD! Otherwise you will be digging a much deeper hole in the long run... Consolidation only works if you can learn from the mistakes and STOP your spending

CLAPTON

not being on the electoral roll is certainly one reason why you may have been turned down. also the length of time you have been with your bank may be a factor and how long you have lived at your present address.

i would wait until you are safely showing on the electoral roll and try for a life of balance cc and transfer the balance from your present cc.

if you post your SoA as already suggested, i'm sure people here will help you reduce you spending costs.

Carly_pi

Thanks for all the advice everyone. The reason I need the loan is because I want to actually pay these debts off, tear up the cards e.t.c. I’m just finding the interest to be a !!!!!!. I’m not using the credit cards anymore; it’s debt from when I was younger and in a poorly paid job. I’ve booked an appointment with HSBC tomorrow so hopefully I can find a few options with them.

CLAPTON

what ever you do, dont let them sell you PPI.

also i would suggest you read up on their website so you are well prepared e.g. that have a very attractive flexiloan...can make over payments under payments, anything from £500 to £5000 but oops 14.8% APR

what rate are you currently paying and who's the card with?

southernscouser

As Clapton suggests, a low life of balance credit card might be your best option. The problem with loans is that most aren't felxible so you can't overpay on them. Also you are likely to pay the interest off on the first few years so if you do find you have the money to pay it off you still have the total amount you borrowed left.

With a low life of balance card you are paying of the balance straight away plus you can overpay without penalties.

Don't take what HSBC offer you. Walk away and think about it. It's far to easy to think they have solved your problems for you but they only care about making money aout of you. We are the opposite. We want you to pay the least money!

lynzpower

Quite right Clapton, many loans are higher interest. If I was in OPs position, Id wait a few months till on the eledctoral roll and then move to a 0%, theres no 0% loans are there

Carly_pi

Clapton- I'm not too sure of the rate (I've had it a few years) but I'm currently paying about £50.00 in interest a month. (this is a HSBC card) and I have £700.00 on an Egg card which isn't too much at all. I'm just worried about applying for any others, I don't want to get turned down again!

southernscouser

Personally I'd wait a full calender month then apply for a low life balance credit card.

Just because you go into the bank and talk to someone it won't mean your chances of being approved increase. They will still do a credit check and to be honest another search on your file could do it damage!

Although it's frustrating I would wait until applying again.

What limit do you have on your Egg card. Reducing it to say £100-£150 above your balance could improve your rating as you have less 'potential debt'!