Keep getting refused

DaringDon

Hello all. I have just been refused again for a loan and i am at aloss as to why.

I have put myself on the electoral register and have obtained my credit report from equifax. It shows me as being on the register, also with one loan (£405 remaining and perfect payment history), and also with one credit card. Again with perfect payment history.

I'm employed.....earning £18,000 per year and i'm looking to borrow £5000 for consolidation.

Can anyone suggest why this may be happening. I'm really at a loss?

DaringDon

anyone :-s

_Andy_

Is the £5k consoling the c-card?

stupidlyindebt

Hello. I'm not an expert, but here are a few thoughts (and this will bump your post to the top for others to see and comment...)

Have you made lots of applications recently - this isn't a good idea as lenders may think you are trying to take on a lot of debt at once and view this as risky.

How much debt do you have in total and have you made it clear to the lenders that you want the loan for consolidation? (if they think it is in addition to existing debt they may also think you are over-extending yourself)

How much disposable income do you have? Are you sure it is enough to repay a loan?

Is your job full-time permanent? Are you subject to a probationary period?

Are you a homeowner? Have you lived in your current home for very long?

Do you have a home (rather than just a mobile) telephone number?

There are lots of reasons why a lender may decline you for a loan. The reasons above are just some that may be considered.

Have you tried asking why you have been declined?

Have you considered approaching a broker like moneysupermarket or moneyextra who might be able to help you find a loan without making too many searches on your credit history?

From my experience - be careful in any case and think hard about whether you have any other option before taking a loan for consolidation. I am currently considering it and am viewing it as a sickening last resort.

DaringDon

Hi, yeah I have made a few loan app recently.

In total I have just under £5000 worth of debt and yeah I have made it clear its for concolidation. I am more than sure I have enough disposable income to repay the loan.

No I’m not a home-owner. I’m a aprivate tenant.

Is there anyone I can show my credit file to for advice do you know?

Also can someone tell me more about moneysupermarket or moneyextra.

Thanks people.

AMILLIONDOLLARS

If you have a perfect credit history paying off both cc and loan, why do you want to consolidate?, which is never a good idea, why don't you snowball instead, it's a much cheaper way of doing things in the long run!!

DaringDon

thats the problem. I'm not really paying off the credit card..........just paying the minimum? On top of the stuff on my credit file I also have other bits and bobs like council tax arrears etc. I wanted to pay everything off.

What is meant by snowball?

Cheers

danielle21_2

try Egg when i was havin probs with loans they gave me one no questions asked! 7.7%apr

AMILLIONDOLLARS

DaringDon

Read this http://www.whatsthecost.co.uk/snowball.aspx it will tell you how to snowball and you can calculate how long it will take you to be debt free!!

I would also recommend that once your in the link to click on the in Debt section as well.

Good Luck

AMD

stupidlyindebt

https://www.moneysupermarket.co.uk/loans

https://www.moneyextra.com/loans

These are brokers who don't themselves lend money, but have a good knowledge of the market and are often able to advise on suitable lenders for particular circumstances.

Before making any decisions though, I suggest you read Martin's advice from the main site, here:

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1099314935,42333,

mountainofdebt

have seen the film and read the book, I would never recommend consolidating debts - unless you have changed your spending ways you will only end up digging a bigger hole for your self.

Personally I would look at your spending and see where you can cut back - alternatively post a list of your outgoings and incomings on the debt free wannabee board and let others suggest ways of cutting back for you.

Any amount you save, throw at the debt.

If you really really can't cut back, then can I suggest an alternative tack.

As Martin says paying the minimum is a mugs game. If you can comfortable afford the current level of repayments, keep the repayments at that level, regardless of what the minimum payment is. That way you will pay back more of the capital and pay less interest. If you don't trust yourself to do this, then set up a standing order so that the payment goes out of your bank account in time to be received by the due date.

Don't make any more applications for credit as it will be recorded and will appear that you are desparate for credit.