Credit Rating Not Good Enough?

willisland

Hello, I want to get out of debt before it gets worse but the banks don't see it that way!

I'm looking for some advice... I have a small amount of credit card debt (3,500 between 3 cards) with varying minimum payments, the largest of which is £63 p/m, smallest is £17 p/m. At the beginning of the year I set up repayments for each card at 100 per card, covering the minimum. (I now realise I should have put more money I could afford to the higher interest card..)

Also (at the beginning of the year) I recently changed to a full time, good salary job and moved residence too. Unfortunately the combination of moving, changing salaries and setting up repayments higher than the minimum has left me short, so much so I crunched into my 2,000 over draft and have been in it since I started work full time. This has escalated and I am now in my unauthorised overdraft, picking up charges.

I wanted to get a loan for 5,000 to clear my cards and come out of my overdraft. In theory I could afford it too! Over 48 months paying around £145 p/m sounded better than £300 p/m split between 3 cards of varied interest rates.

However, my bank declined me after my application went to 'Review', saying it could be because of the recent charges applied, I argued it and explained my new salary wasn't considered, they tried again and it was declined straight away.. I then asked Sainsbury's Bank, unfortunately they declined too saying it could be because I have recently moved and changed jobs.

I'm really in a muddle, I need a loan to bring me out of debt so I can at least feed myself from my own money not my overdraft! It would also help as I'd have a manageable rate to pay each month but every time I apply for a loan and get turned down it's either because I've just moved, had a recent unauthorised overdraft charge or have been applying too many times! Do I just get another credit card and pay the cards from that or is there anywhere I can go for a loan?

I'm going to get a copy of my Experian credit report but I am unsure as to what avenue to try next, I need to get out of my overdraft and pay off / get rid of these cards before they do me more harm. Consolidation??

p.s I've been to Debt Helpline, they say it's manageable -- but I'm eating into my overdraft and this week I hit BLACK and that is going to come back at me!

Help!
Thank you for reading.

Will

[Deleted User]

Read martin's guide to credit ratings:

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

It looks like you've now got youself into a bit of a cycle of applying for credit and being rejected (see martin's explanations).

You might be better to post a Statment Of Affairs (SOA) and get people's feedback and comments on how best to tackle your debts - reduce your costs/spending/outgoings and increase your income.

Also, I wouldn't view 3,500 as a small amount.

CLAPTON

confused
if you can't afford to pay 100 per credit card per month (300 in total) and they don't require this then why are you doing this?

BLT_2

Domino9 wrote: »

Also, I wouldn't view 3,500 as a small amount.

Its all relative, if you have available cash of 2000 pounds a month to pay off debits its a small amount, if you are struggling to make minimum repayments its a large amount.

willisland

CLAPTON wrote: »

confused
if you can't afford to pay 100 per credit card per month (300 in total) and they don't require this then why are you doing this?

It is relative but it's ruining my life, I can't save or plan for the future with my girlfriend let alone eat! I pay 300 for the cards, the min payments of which barely move lower. So I'd like to pay 145 p/m after clearing all my cards and overdraft but it seems I can't because of a low or poor credit rating! Any ideas? Loan consolidation is an idea. Anyone in a similar place?

dacdesigns

Your story sounds like mine apart from, I am not going over my overdraft and have not done so since getting one, I have just finished paying a 3k loan back to my bank at £200 a month over 18months and never missed a payment, ever! and I have not moved house in years or changed job but still I got knocked back for a new loan even though I was pre-approved for 7k with my bank :mad: also my credit report is very clean and my credit score is 920 out of a possible 999!

I think what i'm getting at is that the banks are really being fussy at the moment and will be for a long time yet, I would look at other ways.

Good Luck!