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Loan question...

Right I've applied and been turned down for a loan through my bank...

And this was their reason when I called them: I would be over committed. They worked this out on the principle that my total debts then would exceed my annual income for 1 year in unsecured debts. Whilst I can see their point then I don't recall most banks ever usually worrying about this to be honest.

So do I appeal or would this be pointless? Or do I go for another loan provider with a less favourable APR?

Feeling thoroughly annoyed as I know I can more than compfortably afford the repayments on both and my credit history is practically sparkling!

Actually I might do my SOA and send them an E-mail with it and why I think I should qualify for a loan. Anyone think this would be worth the time and effort or will it merely serve to make me feel good to "have proved to them people they are wrong!"...

Sorry to rant on, just had to vent somewhere :)

Actually - anyone know of a lender with a low APR who won't have these issues?
DFW Nerd #025
DFW no more! Officially debt free 2017 - now joining the MFW's! :)

My DFW Diary - blah- mildly funny stuff about my journey

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    having successfully reduced your debts since 1 of march why do you want another loan?
  • Toomuchdebt
    Toomuchdebt Posts: 2,133 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I'd actually be quite impressed that they were being responsible :)
    Debts Jan 2014 £20,108.34 :eek:

    EF #70 £0/£1000

    SW 1st 4lbs
  • lynzpower
    lynzpower Posts: 25,311 Forumite
    10,000 Posts Combo Breaker
    There has been a bit of a clampdown so Ive read on here, what with so many people getting overstretched and IVAs/ bankrupcy figures being what they are. Im sure the lenders are being responsible in trying to get the money back .

    Do you have any empty CCs that you can close or anything like that? As this will make a difference.

    Am I right in thinking its so that your oh gets a car loan and you will get a more favourable rate of interest (sorry memory is failing :) )If so, I think this theory has been disproven, as you will have a neg reading on your credit report from refusal IYSWIM. Dont apply again soon as it will stuff your report even more.
    :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast :beer:
  • basically they will assess your monthly disposable income - you need about an extra 40% free for things like food and general living after the commitments
  • MrsTinks
    MrsTinks Posts: 15,239 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Name Dropper
    CLAPTON wrote:
    having successfully reduced your debts since 1 of march why do you want another loan?

    It's all in another thread on here ;)

    But basically my oh has to have a car under 5 years and able to seat 4 people etc etc etc due to work. He gets an allowance from work for this (over £300 a month) which will pay for the repayments. However I have by far the better credit score and history (he's just SO not organised which is why I am now in charge of all our finances ;) )

    Anyway we HAVE to change cars, we've found a really really good deal and the running costs of the new car will drastically reduce (diesel vs V6 sports car, cheaper tax and insurance too and services are 40% less and we get a 5 year warrenty)
    We have done all the thinking and maths and although MY debt will increase then OUR debt as such won't by much :) Does that make sense? :)

    Anyway I know they are being "responsible lenders" what annoys me is that this is debt that I know I can afford and they won't give it to me! ARGH!!!! :rotfl:
    DFW Nerd #025
    DFW no more! Officially debt free 2017 - now joining the MFW's! :)

    My DFW Diary - blah- mildly funny stuff about my journey
  • MrsTinks
    MrsTinks Posts: 15,239 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Name Dropper
    Lynz I have already closed all my unused cards other than my CC with Egg which has no debt on it. I don't use my OD (£900 available for emergencies) and I use the Egg card for purchases over £75 for the peace of mind of instant insurance thingy, so I'm loathe to get rid of it.

    My monthly SOA would look like this:

    Income after tax (all figures are per month) £1476.35

    Outgoings:
    £20.10 Pet insurance
    £25 (average) Mobile phone bill
    £60.50 Gym membership
    £50 Savings Account
    £120 Petrol (again this was "the most spent in a month on petrol for last 6 months)
    £167.30 Egg loan repayment
    £200 Groceries (it's not this high! I've included going out etc in this before you all send me to the OS board :P )

    Total: £624.9

    Leaving £833 for other debts :) or over payment.

    Until recently there was also £250 towards bills in the house leaving me previously £583 to over pay on other debts. Which is why I have managed to reduce my overall debt by over £4000 in 5 months but I will infact be getting £75 from OH to make any repayments for a new loan the exact amount his work gives him for the car (£325 pcm). Does any of that make sense? lol!!!
    DFW Nerd #025
    DFW no more! Officially debt free 2017 - now joining the MFW's! :)

    My DFW Diary - blah- mildly funny stuff about my journey
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    off topic but i now recall your other thread...just a query really, is the car money from your OH job before or after tax ?
  • MrsTinks
    MrsTinks Posts: 15,239 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Name Dropper
    After I think... although dunno... To be honest that doesn't bother me much. I'm happy to make up the difference between the £250 I'll no longer be paying him and whatever the monthly repayments are as I have been trying to get him to accept more money towards the bills anyway :) And at the moment I can afford to do so :)
    DFW Nerd #025
    DFW no more! Officially debt free 2017 - now joining the MFW's! :)

    My DFW Diary - blah- mildly funny stuff about my journey
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