Loan Advice Needed

Rich2010

Hi all....

A little background first...

I have around £11000 worth of debt from an existing loan, credit card and also overdraft, and I also need money towards very expensive dental treatment (which I can't get on the NHS) but which I have to have, and also help towards my upcoming wedding.

On the recommendation of MSE I registered with Credit Expert to get my credit rating checked and the first credit report (about 2-3 months ago) resulted in an 869 (fair) score but then I did another one last week and it was 999 (excellent).

I knew this excellent score wouldn't guarantee me a successful loan application but I thought it gave me a good chance and that I should strike with a loan application while I had a good score so to speak.

I was seeking a £20000 loan and on the recommendation from Credit Expert I applied for a loan via Alliance & Leicester which I was unfortunately turned down for.

So my question/request for help is basically what's the next step that I should take?

I'm wary of making scatter-gun loan applications as I know this will effect my score, and my partner has suggested applying for a loan through our joint account but I'm not sure if my credit rating will hold us back on that front?

Any help will be gratefully received...

Many thanks,

Rich

iolanthe07

Without knowing your income it is difficult to give any advice, but £20K is a large amount of money for an unsecured loan, and lenders will see that as being in addition to the £11K; they have no guarantee that you will consolidate your other debt out of the new loan, so will view you as having an eye-watering £31K of debt. In most lender's eyes you would need an income of more than £100,000 to service that. Your partner is probably right; the best place to start is usually your own bank.

R0bert_Sterling

Already £11k in the brown stuff but running head first into even more debt???

If the Dental treatment is a MUST HAVE, it is available on the NHS, as it isn't, it suggests a vanity issue with a Wedding on it's way (something else you cannot afford).

You do realise this is a money SAVING site??

If you can't make any effort to clear a debt of £11K, how on EARTH are you going to clear £20K (plus all the interest so at LEAST £25,000) ??

You do appreciate this is REAL money you are owing??

The two of you are going to have to live like paupers if this wedding goes ahead, or you simply rack it all up and go bankrupt which seems to be a popular choice.

Thrugelmir

Some facts of life.

I have around £11000 worth of debt from an existing loan, credit card and also overdraft

This will be detected on any loan application. It is a clear sign that you are living beyond your means.

and I also need money towards very expensive dental treatment (which I can't get on the NHS) but which I have to have, and also help towards my upcoming wedding.

To have something you need to earn and save money. Private dental treatment is not essential. Committing to an expensive wedding in your circumstances ( and no doubt honeymoon) is a folly.

On the recommendation of MSE I registered with Credit Expert to get my credit rating checked and the first credit report (about 2-3 months ago) resulted in an 869 (fair) score but then I did another one last week and it was 999 (excellent).I knew this excellent score wouldn't guarantee me a successful loan application but I thought it gave me a good chance and that I should strike with a loan application while I had a good score so to speak

Not worth the money to subscribe to such services. Any lender will firstly check how much you already owe. The rest of the data only comes into play if you pass the first hurdle. Which you don't..

I was seeking a £20000 loan and on the recommendation from Credit Expert I applied for a loan via Alliance & Leicester which I was unfortunately turned down for.

Stop kidding yourself. As a borrower you have a high probability of defaulting.

So my question/request for help is basically what's the next step that I should take?

Change your lifestyle before its too late. Bankruptcy isnt all its made out to be.

I'm wary of making scatter-gun loan applications as I know this will effect my score, and my partner has suggested applying for a loan through our joint account but I'm not sure if my credit rating will hold us back on that front?

And will continue to do so unless you take remedial action.

Rich2010

Many thanks for your advice....

iolanthe07 - my salary is 30k+ from a full-time job and extra money from freelance work, but you are very right about the loan as even though I would consolidate my debt, the lenders have no way of knowing that and yes 31K is a staggering amount!

Thrugelmir & R0bert Sterling - I can assure you that the private dental treatment is not a vanity issue, far from it. I've had health related problems (a recurrent disease) with my front teeth for around ten years and I'm basically at a crossroads now where I either find the money to have implants in or lose them completely - I'm still in my thirties and don't really like that idea to be honest!

The wedding is going to be very small and no expensive honeymoon is planned and in terms of paying off my debts I've never had a problem - I've always paid any loan repayments/credit cards on time, also including any household bills!

I've unfortunately just had a few things go against me in the last couple of years which have left me in this situation...

I don't want to have another loan but that's the only way at the moment that I think I can get things cleared to start again. I hate having any kind of debt and I posted on here because of that - I want to be debt free, I really do but I know it's not going to be in the near future....

bouncydog1

Go and get a second opinion on your teeth - implants are the ultimate fix but you still lose your front teeth to have them. What about veneers, crowns or a bridge - all much cheaper than implants. Surely if your tooth damage is as a result of illness you don't have to pay - sure the fix won't be the most effective solution, but better than another £5-£10k of debt.

Apples2

Rich2010 wrote: »

that's the only way at the moment that I think I can get things cleared to start again. I hate having any kind of debt and I posted on here because of that - I want to be debt free, I really do but I know it's not going to be in the near future....

I think you are missing the point which is being said.

Swapping an £11,000 debt for a £25,000 debt is no way to "get things cleared to start again."

You are doubling the mess, and doubling the very remote chance that you will EVER be debt free.

Personally, I think for the average man, £10K is a debt threshold (apart from Mortgage).
I think once you breach £10K (which you have already done), you will find it impossible to get out of it without professional help.

You are trying to go WAY beyond the £10K, closer to £30K. You will NEVER be debt free unless you go Bankrupt if you take on this extra borrowing.

Sorry but your plan is a road to disaster. With a Wedding approaching you should be trying to clear the £11k, not add to it.

What about starting a family, buying a house, buying furniture etc once you are wed, these things do not come cheap.

iolanthe07

Another thought - my dentist offers interest free credit for expensive work. Why not ask yours if s/he does the same?