Personal Loan - Advice Req'd

Cogs9iar

I applied for a personal loan of £15,000 to HBOS (who I have held my bank account with for around 20 years) in order to consolidate my debts and also put some money towards my wedding in May.

My application was declined, and the bank told me I should check my credit report, which I have now done.

My credit report scores me as a 'fair' credit rating.

It also shows no missed payments on any of the credit agreements I have and no other adverse factors other than the amount of o/s credit accounts I have at the moment. (being 8 with a total o/s balance of around £10k.)

I realise that this is quite a lot of accounts to have (4 credit cards, 2 store cards, 1 HP agreement and 1 unsecured loan), which is why I was looking to consolidate in to one managable loan payment. However, it would appear that the very fact that I have accounts I want to consolidate in to 1 loan is the main reason that I have been declined a consolidation loan.

Does anyone have any advice on how I should/could proceed?

Is it advisable to request a meeting with someone at my local HBOS branch to discuss my application? Would this be likely to have any positive effect on them perhaps changing their decision on my application?

Any advice would be much appreciated!

CLAPTON

why do you want to 'consolidate' your debts?... I know the adverts say one easy loan etc etc but why?
but what are the amounts, APRs and monthly payments and how many remaining

when you apply for a 15k loan the lender will see you already have a 10k worth of debt so will see you as having potentially £25,000 worth (you say you will consolidate but of course you don't have to.

You will probably need an income over 45k to get such a deal.

If you're struggling to repay 10k worth of debts how will you repay 15k worth..

Rafter

'fair' seems pretty low if you are up to date with all your accounts.

Are you on the electoral roll? are you using a lot of the credit you have been offered? (low 'available' credit)

Totally agree with clapton though - consolidation is often not the answer.

Schedule out what you owe - what the APR is on each loan and set yourself a really tough budget between now and May.

Once you have started to pay off your existing debt (probably your store cards or credit cards) test the water and see whether you can get a 0% credit card deal or a loan for £5k for the wedding money you need.

Good luck

R.