Loan Advice. "Good" credit rating - just been refused by Tesco Loans..help!!

Missy77

Hi

New to here - and have been recommended I might be able to get some good advice
I have decided that in addition to getting a loan to buy a new car (£2500) it would probably be sensible to get a larger loan so I can consolidate too. I have a bank loan and a credit card and want to add the cost for a car.
Ive done a credit report with Experian and Ive come out with a 'good' score and report. the only pointers going against me are that I have a credit card that is up to its limit and I am not a homeowner - but all the other pointers are good. I also have a reasonable regular salary (£28.5k per anum) and I always pay on time.

However, I applied for a Tesco loan last week but have been refused
I was looking for some advice where to apply next please! I don't want to be applying over and over again as this will affect my credit score.

Many thanks in advance!


Missy77

Hax

Experian scores aren't particularly meaningful - each lender will have their own criteria.

You say you have a credit card that is up to it's limit. What is that limit?

What is the total amount you are hoping to borrow?

Missy77

My credit card limit is £3500..on £3487. I'm wanting to borrow approx £10k which would cover the credit card, bank loan of £2800 and a replacement car which I need for my business (old car has just been scrapped due to catastrophic MOT failure)

The tesco's loan that I was refused for was for £7k which i was going to use just to cover the bank loan and car but think it would be wise to consolidate all my debt?? Just need some help!!

Fiddlestick

Missy77 wrote: »

My credit card limit is £3500..on £3487. I'm wanting to borrow approx £10k which would cover the credit card, bank loan of £2800 and a replacement car which I need for my business

Consolidation loans are very hard to get.

On top of that, lenders look at any existing credit you have and add that to how much you are looking to borrow.

That would bring you up to £13.5k of available credit - that's near enough half your income, so you're going to find it hard to borrow up to that amount.

Hax

With the Tesco's loan request of £7000, outstanding credit card of £3500 and an existing bank loan of £2800, that would bring your total borrowings up to £13300. That's almost 50% of your salary and is approaching a limit that a lot of lenders are (apparently) unwilling to exceed.

I know that you were going to use the "new" loan to clear the existing one - but the lender may not know that and may be unwilling to expose themselves.

Missy77

Ok I need to rethink. My priority is to get finance for a car as I have to have one for my work (looking at approx £2500) - Im a Childrens Entertainer and just cannot work without a car...had to hire one this weekend and I cannot keep doing this. Is it worth me having a meeting with my bank??

Fiddlestick

Missy77 wrote: »

Ok I need to rethink. My priority is to get finance for a car as I have to have one for my work (looking at approx £2500) - Im a Childrens Entertainer and just cannot work without a car...had to hire one this weekend and I cannot keep doing this. Is it worth me having a meeting with my bank??

If you *have* to have a car for work, can you not buy a cheap second hand car?

You could even buy a Lada or a Trabant and incorporate it into your act

KingElvis

^^ I haven't seen a Lada for years so they're probably collectors items by now.

You can get a good, decent runaround for 1k easily.

PNPSUKNET

Cant the business buy it?

Apples2

Missy77 wrote: »

Ok I need to rethink. My priority is to get finance for a car as I have to have one for my work (looking at approx £2500) - Im a Childrens Entertainer and just cannot work without a car...had to hire one this weekend and I cannot keep doing this. Is it worth me having a meeting with my bank??

£2.5k does seem a realistic figure for a car, a lot of posters simply NEED £15k for a car.

A meeting with the bank would be a good step and the most realistic chance of having some success, take some evidence of your work, almost a business plan if you will.

Good luck in finding your dream car

Missy77

The kids entertaining is my way of making extra money on top of my other full time job. I work through an agency so unfortunately the "business" cant buy it. I would absolutely use public transport if i could but its just not at all possible as I have so much equiptment - also very concerned about getting a cheap runaround...my last car which was 12yrs old (and being scrapped tomorrow)has cost me sooo much money over the last year I need something reliable...not looking at a new car just a decent 2nd hand one!