Declined loan - please help

InsomniaEndsHere

Hi, I have been declined a loan to consolodate all my existing debts.
I checked my credit report and I am shocked as to why because I am in the "excellent" catogory with 476 score. Everything is excellent except the elecoral role as I am not on it, that is danger. But still my overall score is 476 and excellent. Is this why I am being declined? I do have alot of outstanding credit ~10k but have never missed a payment and all deemed excellent on the report.

Beast

InsomniaEndsHere wrote: »

Hi, I have been declined a loan to consolodate all my existing debts.
I checked my credit report and I am shocked as to why because I am in the "excellent" catogory with 476 score. Everything is excellent except the elecoral role as I am not on it, that is danger. But still my overall score is 476 and excellent. Is this why I am being declined? I do have alot of outstanding credit ~10k but have never missed a payment and all deemed excellent on the report.

First things first - the score means nothing. Please ignore it.

Secondly, it's likely to be a combination of your non electoral register status and high existing credit which has caused the decline.

How much were you trying to borrow and how much do you earn?

fozmcfc

Firstly, some companies won't accept you whatever your status if you are not on the electoral role.

Secondly, the general thought around here, is your score means absolutely nothing, as each company will look at you in different way to meet their criteria.

Thirdly, it will largely depending on your income, whether you could get another loan, even if you are on the electoral role. If you earn anything upto £19,000, you are unlikely to get another loan.

Even though you say it is to consolidate, particularly if part of the debt is on credit cards, you could 1. not consolidate at all or 2. consolidate, then run up the debt on the cards again. Many of us have done no 2, ourselves.

EDIT....the beast beat me to it

Clive_Woody

fozmcfc wrote: »

Thirdly, it will largely depending on your income, whether you could get another loan, even if you are on the electoral role. If you earn anything upto £19,000, you are unlikely to get another loan.

Actually if the OP has £10k already outstanding and wants to borrow an additional £10K to consolidate this, then they will effectively be £20k in debt and would need a salary around £40k to be considered for this I would suspect.

The OP also needs to get added to the electoral role.

Raggs_2

InsomniaEndsHere wrote: »

My income is 30k pa and I have more than enough left over each month to meet repayments. I just wish to lower the existing debt. Any advice would be appreciated

Borrowing more doesn't lower any kind of debt.

If you easily meet repayments, why don't you overpay (assuming you have that option).

What are your current debts?

Raggs_2

Whilst a lower APR may sound attractive, it doesn't always work that way, if you are locked in for years of repayments, you may end up paying more back in the long run.

Can you overpay your current debts? If so, go into a snowball calculator and see just how fast you could be debt free, and how much it would cost you, then compare that to the loan terms that you may be able to get.

ukbill69

score 476 is not good, where does it say this is good?.

Thrugelmir

As others have said ignore published credit scores. A considerable sum of unsecured debt tends to indicate poor personal financial management skills. Each lender will have their own criteria on which they base their decisions. Never missing a payment is merely a basic ground rule , it does not add any enhanced status to your application.

Lenders will be assessing the likelihood of you defaulting, your ability to pay in the future and whether you are likely to repeat the same mistakes again.

The APR you are paying reflects the risk to the banks.

Take matters into your own hands. Cut your expenditure and tackle the debt with the highest APR first.

There's no easy answers just hard work.

PNPSUKNET

at a guess equifax

jonesMUFCforever

InsomniaEndsHere wrote: »

My income is 30k pa and I have more than enough left over each month to meet repayments. I just wish to lower the existing debt. Any advice would be appreciated

Ask yourself this then - if you earn so much how come you have some much debt??
This is what lenders will be saying when declining you.
It is not a question of just being able to pay minimum payments on time.

Dabooka

Surely some of your existing debts are on cards rather than loans? If so, as it's been suggested, over pay on them (highest apr first) and work it from there. The snowball calculator will give you and indication on how this will work out. Finally, as long as your not on the electoral roll I don't think you have a cat in hells chance of being accepted.

HTH