Personal Loans - Help?

Princess44

Hi All,

Please bare with me as this is my first post, I’m after a bit of help or advise on getting a personal loan.

I currently earn 24k a year with around £2k in Bonuses/overtime. – At least £1,520 a month


Personal Debts

1 Credit Card with has a balance of £3390 with a limit of £3400 – min a month - £80.

1 loan with A + L which was originally £12k over 4 years – This ends in Jan 11.(nearly there J) – Pa £290 a month.

Phone contract which is £40 a month (Iphone)

Sofa which is interest free of £33 a month over 4 years – 3 years left.- DFS

2 overdrafts of £1000 on each account.

House Bills

I have a mortgage of £72k paying 430 a month (Joint) – House is worth around £98k

Virgin Media - £65 – in my name

Gas and Elec - £60 – in my name

Council Tax - £91 – Joint names

I own the house with my other half and we each put £450 a month into our joint account which covers all bills including food for the house, ie mortgage, gas, elec, water, virgin media, council tax , tv .
Again never any missed payments.

I am now looking at taking out a loan to pay off the credit card of £3400 and an additional £5k which I owe my mum for the deposit on the house.

I have just applied to A+L and Sainsbury’s but no luck and I can’t understand why.

We have lived in the house 11 months and I have never missed a payment on anything but I cant seem to get credit anywhere.

I also have credit expert and everything seems fine on there (no missed payments, no defaults) but when I have done the credit score its 428 and I cant understand why????

Please can someone help please L

opinions4u

Princess44 wrote: »

1 Credit Card with has a balance of £3390 with a limit of £3400 – min a month - £80.

Try paying an extra £1 (or preferably more) each month. Then you will be recorded as paying more than the minimum.

I have just applied to A+L and Sainsbury’s but no luck and I can’t understand why.

Simple. They cherry pick the best customer and decline the majority of applicants. That's how they can offer "best buy" rates.

We have lived in the house 11 months and I have never missed a payment on anything but I cant seem to get credit anywhere.

If you've made multiple applications, stop. You've lived at your address for less than 12 months, which ups your risk profile. Have you made sure you are on the voters roll?

I also have credit expert and everything seems fine on there (no missed payments, no defaults) but when I have done the credit score its 428 and I cant understand why????

That does seem low. But it's meaningless. They don't lend the money.

Other factors are taken in to account by lenders. One problem you will have with a single named loan application and a joint mortgage is that many lenders will deduct the full mortgage commitment from your outgoings and decline you on affordability.

I would:

- make sure you are on the voters roll
- start overpaying the credit card, even if it's only by a modest amount
- wait until you have lived at the address for over 12 months
- if you are approaching 1 or 3 years in employment, wait until you have passed that milestone
- consider waiting until the existing A&L loan is repaid. It will improve any affordability calculation.
- approach your main bank to see how they can help after you have done the above.


No promises, but I hope it helps.

Princess44

Thanks for the advise opinions4u i forget to mention i had tried my bank too and straight decline (no credit search though)

I always pay at least £5 more than minimum payment on credit card too - mum told me about that so im not marked as a minimum payment maker.

Yes im on the electoral role at the current adress too ive checked - is there a certain amount of time you need to live at 1 address i.e 12 months, i have only ever lived at one address before which was with my parents.



Ive got 2 applications in the past 3 months


Do you think there could be something wrong that im not seeing as i cant understand why they saying my score is 428.

Any companies you think I could try for a loan?

Thanks

Princess44

Any more help much appreciated ?

KingElvis

In all honesty, you look to have too much debt already. If you're looking to borrow to pay off loans this means nothing to the lender, you could say that and go and blow it on a party or a holiday for example.

If you owe 20k and want to borrow another 20k to pay it off, the lender will see you as owing 40k, not 20k.

CLAPTON

you are very close to your credit limit - seen as poor money management and as being a poor risk
you use two overdrafts - this is now seen as not living within your means and being a poor risk
I would suggest you look closely at the detail of your spending and see why you haven't reduced the CC or cleared the ODs
try this http://www.makesenseofcards.com/soacalc.html

Princess44

Ok so what do you think is the best plan to try and get my credit better? I cant understand why i cant get a loan as i have never had trouble before - i got a 12k loan back in jan 07 over 4 years.

I can understand that the cc is near the limit but i have never missed a payment or defaulted or anything on this. With this being close to the limit would that expalin my credit score being so low? If so why?

Thanks again

CHR15

Princess44 wrote: »

I can understand that the cc is near the limit but i have never missed a payment or defaulted or anything on this. With this being close to the limit would that expalin my credit score being so low? If so why?

Because you are living on other peoples money.

An Overdraft can be withdrawn at a moments notice, if this happened you would have to find all that money immediately, the CC can have a hike of Interest rate again, at a moments notice.

Until you climb out of the overdraft and clear the Credit card you are at serious risk of a financial meltdown without even more borrowing.
This is a real risk which is taken into consideration when applying for more credit.

Until you get out (and stay out) of your overdrafts, and clear your credit card debts each Month, you will always be a high risk.

Borrowing will be extremely difficult until you are living within your means.