Afraid of rejection

sonofsmallface

Not from women, but from creditors.
I want to take out a loan, for a combination of reasons - debt consolidation so I can clear all credit cards/overdraughts etc, plus I want to buy a new(ish) car, and also a little bit of home improvements. But I'm afraid of getting rejected and then falling into the spiral of rejection.
Within the last 6 months I was rejected just trying to open a current account. I checked my credit report to see if there was anything that caused the rejection but the report looked pretty good really, no missed payments, defaults or anything. Just lots of green circles and the word 'satisfactory'. But since then I've been paranoid about my credit.
I googled 'easy to obtain loans' and there are lots of them out there saying 'bad credit? Don't worry' etc. I imagine they probably give a worse deal than a high street bank though. Ideally I'd like to get 10-12K.
So two questions 1) should I go with something like the 'easy loans' type organisations, or a high street Bank like Barclays? 2) what do I put on the application form? That it's for debt consolidation, a car or home improvments? Does it make any difference?

CLAPTON

how much debt do you have?
do you normally pay more than the minimum payment on your CCs
do you regularly us your OD?
what is your salary?

Tixy

sonofsmallface wrote: »

I googled 'easy to obtain loans' and there are lots of them out there saying 'bad credit? Don't worry' etc. I imagine they probably give a worse deal than a high street bank though. Ideally I'd like to get 10-12K.

Just a bit - like maybe an APR from 40% (if you are lucky) to 400% (or to 2356% on some loans!)
Or only offering secured loans - if you are a homeowner. Securing debt consolidation on your house is a bad idea.

From the sound of what you have posted mainstream lenders may consider that you have too much credit already.

If you have managed your current account well (always get back in the black each month, not exceeded your overdraft limit) you could approach your own bank and talk to them about the likelihood of them lending to you. They may give you an indication before conducting a credit search.

sonofsmallface

CLAPTON wrote: »

how much debt do you have?
do you normally pay more than the minimum payment on your CCs
do you regularly us your OD?
what is your salary?

The honesty bit, I currently have just under 3,000 debt, I've only been paying the minimum amounts on the CC for the past while. I regularly use my over draught - but never over the limit, and I earn around 26K p/a.

CLAPTON

life has changed with the credit crunch
and living in an OD is now often viewed as some-one struggling to manage financially
and many CCs now report whether people only pay the minimum on the CCs which again is viewed as struggling financially

I am curious however, if you you regularly need to use your OD and only have 3k of debts how you are going to manage to repay 12k of debt?

I would have thought that it be better to look at better budgeting and to stop using the OD except very very occasionally and start to clear those CCs down too.

sonofsmallface

Well, the thing is that I had a few big unforeseen events which gobbled up quite a bit of money, hence why I've kind of been dipping in and out of OD as I was building funds up again. But if I were to take a loan and clear all the CCs it would consolidate it, and if I'm just paying the fixed monthly repayments it's quite easy to work out an actual budget rather than when everything is just kind of variable.
Plus, either which way, the car I'm driving seems like it's going to die any day. I'll need another and I'd like to get something reasonably decent as opposed to the bargain bucket car which only lasts you a year.

sonofsmallface

So in conclusion does it seem like it'll be difficult to borrow from someone like a high street bank?
... though I don't like the prospect of a deal like Tixy mentioned.

sonofsmallface

Oh yeah - one other thing I should have mentioned earlier; when I applied for the account there was a big delay, when i chased them up on it, it was due to the council misspelling my wife's surname on one of the council tax bills, which as luck would have it was the one that we gave them in amongst our proof of address and stuff. It seemed to cause quite a problem, even though they had several other things with her name spelt correctly. Also, seeing as we're married and have the same last name - you'd have thought it would be pretty easy for them to put it down as a spelling mistake.

surreybased

Hi,

I would also be concerned about the ability to repay, it does seem quite a large amount to borrow. I know how stressy it can feel when your car is unreliable but they are good cars around that need not be too expensive. Why not do a an SOA (links on the DFW) and then see what funds are available for a loan on a monthly basis, then look at what options lenders have. Its then more likely that you'll be accepted for a loan.

Good Luck