Refused loan

thefreckle

Hi all,

First of all apolgies if I'm creating this topic in the wrong area. However my goal is to find the right loan for me so I think this is the correct area.

I've recently became worried about some debts I have. This may seem like small amounts to some people but not to me. I owe:

£1000 on credit card 1;
£700 on credit card 2;
£300 on an overdraft.

I'm currently paying £100 a month off the 2 credit cards but the interest keeps building up and I can't see the end in sight. On top of that I always use the £300 overdraft and I want to get rid of that too.

I've tried applying for some 0% interest credit cards to transfer the debts to but I was declined. I then tried applying for a Santander loan (and sone others) and was also refused for "not meeting our lending criteria" or something along those lines.

I decided to check my credit report and score. On my credit report I had 2 late payments. I'm assuming this is what's causing these applications to be refused. I paid the £5.95 to get my credit score and found that it is 999- so I can't get any better in that regard.

So my question is this- where can I get a loan for £2000 to consolidate these loans and to provide me with a structured way to repay this credit I've used? It's frustrating knowing my credit score is so high but yet I can't obtain a loan. Can someone point me to a company who provide a loan for someone in my circumstances without charging massive interest?

Many thanks in advance and apologies again if I've posted this in the wrong area!

CLAPTON

what's you income?
what are the APRs on the CCs?
if you are paying 100 per month on the CCs and the debt is still increasing then either you are still using them or paying over 70% apr

credit scores mean absolutely nothing

BLT_2

thefreckle wrote: »

Hi all,

. I paid the £5.95 to get my credit score and found that it is 999- so I can't get any better in that regard.

Unfortunately you have just been scammed by Experian. If you read their small print it states that their score is only an indication. They are raking in a fortune from people who believe that the score has any relevance to your ability to get a loan. Tie this in with the commission they rake in from sending people to QDL and you understand why they can afford to advertise on prime time TV (even if the advert does look like it has been made by college dropouts)

Don't waste any more of your money buying experian comedy scores, use it on paying off your credit cards. I assume the reason you are being turned down is that you are making minimum payments on your credit cards, using your overdraft and have late payments on your account. This also points out to the companies you are attempting to borrow off that you are in financial difficulty. Ergo you are high risk and they don't want to take the risk

thefreckle

CLAPTON wrote: »

what's you income?
what are the APRs on the CCs?
if you are paying 100 per month on the CCs and the debt is still increasing then either you are still using them or paying over 70% apr

credit scores mean absolutely nothing

Hi,

I maybe was a little unclear. The debt is not increasing but is decreasing by so little each month that I feel like I'll be paying them off forever. The APR on each is 18%/20%. My income is £16k.

Why do credit scores mean nothing? Are applications for loans solely based on the credit report? (and in that case am I correct in assuming that the 2 late payments are what's counting against me?)

Thanks for your response!

theoretica

Also now that you have applied for several credit cards/loans that is likely to count against you for the next few months- it makes you look desperate.

CLAPTON

a debt of 1700 at 20% apr means a monthly interest of about £24 so your debt ought to be reducing at about 76 per month and you should be clear of the CC in about 20 months

if you had a loan at zero percent then 1700 would still take 17 month to clear if you pay 100 per month (i.e. 1,700/100)

in general people who live in their overdraft are seen as people in financial difficulty; plus two late payments and a low salary are not helping

I would suggest you look at your spending and see if you can reduce it and so pay more off your debt.

in any event I would suggest you reduce your OD in preference to the CC as it can be recalled at anytime.

give

Def need to look at your spending and make adjustments. Not easy but worth it if you are serious about clearing the debt

27col

Surely it should be apparent to the op that if the debt is only decreasing slowly, it can only be because the op is not paying enough each month to reduce it. If the op cannot afford to increase the monthly payment then the op will have to reduce their out-goings so as to free up more money for repayments.

BLT_2

thefreckle wrote: »

Hi,

I maybe was a little unclear. The debt is not increasing but is decreasing by so little each month that I feel like I'll be paying them off forever. The APR on each is 18%/20%. My income is £16k.

Why do credit scores mean nothing? Are applications for loans solely based on the credit report? (and in that case am I correct in assuming that the 2 late payments are what's counting against me?)

Thanks for your response!

The experian and equifax credit scores mean nothing, they are only indications of your credit worthiness. Each company uses its own criteria as to whether you fit into their preferred profile.

You can have a 999 score on experian with no defaults, but if the company doesn't like the information on your application form then they will reject you regardless of what the score from equifax or experian is.

The experian credit score was created by experian to make money for experian. It as meaningful as Katie Price's wedding vows

moaninminnie_2

Cany anyone suggest my next move. I am currently in just over £8,000 worth of debt over 3 credit cards:
Credit Card 1 - £1600, payment each month £80, %0 balance transfer about to run out 23rd June 2010
Credit Card 2 - £3341, %0 ran out months ago, payment each month £82.00 of which £42 is in interest
Credit Card 3 - 2709, %0 ran out months ago, payment each month £80 of which £56 is in interest.

I realise I've only got myself to blame but now seriously want to get back on the right track. Have applied for several loans and several new 0% balance transfer cards but with a couple of missed payments (and I mean a couple) no-one will touch me. With the interest I'm being charged I have no hope and don't know where to turn to. My net wage each month is £1012. Can anyone offer any suggestions, please?