Struggling to get a debt-consolidation loan on fair credit score

MoonwalkExpert

Hello,

I have two credit card debts (as seen in my signiture) that I'm looking to consolidate into one loan. I score as "fair" on CreditExpert but I have been unsuccessful on two loan applications, even one with my own bank. I've spoke to Aspire Loans but I am unsure about those guys and the APR they look to charge.

I'm looking to borrow £14,200 to consolidate my two credit card loans but as a self-employed, 22 year old, living with parents I'm struggling where to look and get approved on a "fair" APR.

Anyone and everyone's help and assistance is much needed.

Tixy

People with excellent scores often struggle to consolidate.

Any potential lender will look at your existing debts and the new loan you want (so £38k) and compare that to your income. At a guess (though without knowing your income0 they will think you cannot afford to service £38k worth of debt so will decline you.

They don't take into account you want to consolidate as they cannot make you, you could easily run up the credit cards again so they look at maximum exposure.

The fact that you are self-employed is also quite possibly going against you. Can you prove your income for the last 3years and demonstrate that you could afford to service £38k of debt? If not then you are unlikely to get anyone to lend you that amount.

EDIT - aspire are a broker - the APR will be high, and they are apparently pretty difficult to get hold of by phone - that would be enough to put me off. https://forums.moneysavingexpert.com/discussion/2560051

Rafter

That is an awful lot of debt for a 22 year old.

Suggest you get hold of Martin Lewis' book and go on a very strict money diet. Start paying as much off your highest interest rate card to increase your 'available credit' Try applying for a balance transfer card to get your interest bill down so more of what you are paying off each month is reducing your debt and not going straight to the bank.

Getting a £14,000 loan is really not going to happen though and paying a silly APR for many years is no better than getting a proper budget and starting to clear your cards.

Good luck

R.

PS - if you haven't already, cut your cards in two so you aren't tempted to keep spending.

MoonwalkExpert

Thanks for your input guys. Means a lot.

@Tixy - What you say about my exposure makes sense, thanks.

@Rafter - I'll look for that book. I have started rationing my money now and budgeting quite well. Thanks for your advice and the cards have being destroyed.