Appealing a loan rejection?

AdviceSought

I need some advice on how to appeal a loan rejection. Prior to a lengthy period of unemployment last year, I was managing my outstanding credit pretty well. When I was made unemployed, I contacted all of my creditors and pretty much none of them were willing to do anything to help me. So, now I'm back in employment (which is full-time and pretty secure) I could do with a loan that will allow me to kill my existing loan and the credit card arrears and my problem with NatWest and leave me with an affordable payment. I believed a loan of £6,000 repayable over 48 months would easily clear my committments and within an amount I can easily afford (i can't afford the combined amount my creditors want for their repayments at the moment). The application for this loan was rejected. I want to appeal this and ask for a manual decision, what is the best way to go about this? I have drafted a letter setting out the causes of my problems and why I want to borrow the money. I'm also going to tell the bank that I am willing to make repayments of up to £250 per month for upto 48 months, an amount I'd find affordable and would, in my opinion, provide an interest rate that fully acknowledges my poor position. So, has anyone succesfully appealed a loan rejection and how would you structure the letter?

[Deleted User]

I doubt that given your admitted recent repayment problems that you will succeed,you would be better doing everything you can to improve your credit rating,then re-assess your circumstances in 12 months time.If you can afford £250 a month wouldnt that go along way to sorting your problems anyway?

AdviceSought

woodbine wrote: »

I doubt that given your admitted recent repayment problems that you will succeed,you would be better doing everything you can to improve your credit rating,then re-assess your circumstances in 12 months time.If you can afford £250 a month wouldnt that go along way to sorting your problems anyway?

I don't think so as the current repayments on my existing loan and the other minimum repayments equate to a far larger proportion of my salary than £250 is.

Rafter

As woodbine says, as you have defaulted on your existing loans during a period of unemployment, regardless of the fact you are now on a decent wage, it is going to be a while before you will get accepted for a better loan - so no point in appealing.

If you really cannot afford to make your existing payments you need to talk to a debt charity like cccs or debtline to help you negotiate.

If you interest rate has been loaded unfairly you can try to complain and see if you can get them to lower it - but I'm not sure what rights you have to demand this.

Your letter setting out the reasons for your current situation will probably fall on deaf earn unfortunately.

If you have not already done so, fill out a 'statement of affairs using the following link which will help you to work out what you can reasonably afford to pay.

R

http://www.makesenseofcards.com/soacalc.html

jonesMUFCforever

All mainstream banks employ staff to sell to you - they want you have the loan to qualify for bonuses for hitting targets - so IMO they will have already appealed to their lending team before declining you.