Rejected Again!!!

angelhead

Hi Everyone,

I'm desperatly trying to lower the interest rate I have on borrowing on an EGG card (£1000) and a Career Development Loan (£1500). However, I keep being turned down for things (today a Northern Rock loan).

I have also been turned down from 2 0% Credit Cards (Virgin and Amazon) so this could be the reason. As well I've moved house a lot over the last two years (four different addresses). I earn £20k pa on a fixed term contract (ends December but will hopefully be renewed) working in TV.

I don't know how I can borrow £2.5k at a lower rate than the massive 15% on the credit card and the 12% on the CDL.

Any suggestions folks???

Angel xxxxxxxxxxxxx:A

homersimpson_3

every single time you apply for any form of credit- mortgage, credit card, loan etc- a credit search is done on you. if you apply for too many in a short period it looks like you can't manage money and are desperate so creditors unlikely to lend you money. they won't lend it to you if they think there is a high risk of not getting it back. they like permanent addresses - 3 years at least- because too many changes suggests (only suggests) without contrary evidence that you could do a runner (it happens!). There's no garauntee your contract will be extended so why should bank lend you money?

How to resolve? - the debt is small in comparison to annual salary. where is the money going? post a statement of affairs (incomings and outgoings) so we can see if we can save you some money which can be targeted towards debt. who do you bank with? how long with you been with them? have you asked local bank for interest free overdraft? what was response? why have you been moving around? bank look at all circumstances. do you save regularly? etc

In_Search_Of_Me

Would also reccomend that you get your credit files (thread on here somewhere - just type credit file/rating into search) to check that its accurate. Also need to check you are on electoral role as this will affect rating & as above poster said each time you apply you get "scored"...the more you have the less likely you are to get credit. It may be an idea to be lethal with your spending - ? get spending diary as first point of call...its scary how little bits here & there add up! Also may be a good idea not to apply for credit (actually def dont!) until you find out re tha above...in the meantime sell stuff on amazon/ebay/car boot to get rid of unecessary junk (I've made hundreds in the last 2 months) & pay as much as you can off your cards. If you feel able to post an SOA people can give you pointers on where to save money...hope that helps & good luck! PS All the above takes time & effort but well worth it!

Molanole

Agree with all of the above. Too many credit searches in a short period of time will have a detrimental effect on your credit report. As FF says though I would strongly recommend getting hold of a copy of your report as it may show up issues you hadn't thought of. I too have fallen foul of the too many moves in a short period of time (Note to banks - I rent, some of us do you know, we're not all fraudsters) but other than that I have a good rating and still can't get a 0% CC so I'm chilling for a while and paying off what I can.

Posting an SOA is a good idea even if all it does is encourage you to work out where all your money is going. That way you'll be able to work out how much you can free up to throw at your debts.

Good luck!

jessicamb

Hi Angelhead

I have previously looked into getting a loan for approx £1500 and all the rates were astronomical. The cheap rate loans only seem to start from about 5k upwards. I decided against it as the costs were too high.

jonesMUFCforever

How much can you afford to pay each month?
Agree with other posters that too many searches in a short period of time will make things worse.
I think that your employment status is also spooking these companies because although you are confident of getting a new contract they only see at the moment regular money coming in until December.
No offence but if £2500 is your only debt then for the next 6 months or so I would concentrate on paying as much as possible off on the Egg card and then over pay on your career development loan ( and no more credit applications).

fannyadams

On the front of the Barclaycard Classic in branch applicaiton form it says "to improve your credit rating apply for this".
Although I expect you don't need another CC!

kuohu

I believe that the location moves, plus maybe job moves (if you are contracting?) will count against you whether you are a bad credit risk or not (and it sounds like you're not). As others have said, get your free credit report from Experian to check it out.

It might also be worth posting this in the Credit Cards section of the site - they have some great experts on credit cards and scoring over there.

*Sparkle*_3

i agree with the others.
To get a low interest rate loan you have to get a minimum of £3,000 for most places and basically they are putting you into more debt that you dont need, you should work at paying back the debt you have and dont get yourself into more debt its a vicious circle, believe me i know!

Best of luck to you