loan switching advice

wolfie665

Hi,

I am trying to switch an unsecured loan and it does not work. I have a loan with 14% APR and initially it was for 20000 and I have left about 10000, and because the APR is high I just loose money. I dont have ANY credit searches for the last 12 months, my Callcredit rating is 914, Experian 731, Equifax 891, never missed a payment, still last week have tried Tesco Bank and Santander and both has refused after doing a credit search on me :mad:

Its true that I have 1 credit card and keep it almost always around 2900 with my limit at 3000, but this aside my credit rating is perfect, still cant switch my loan to a better rate, even they refuse to give me any rate, complete refusal?? I dont own a property, private rent, but my salary is good and I cover all internal criteria just when they do the search both said we need to go to underwiters (whatever this means) and then I've got refusal.

Any ideas why is this hapenning and what I can do about it?

thank you

cheers

Wolfie

MFWannabe

wolfie665 wrote: »

Hi,

I am trying to switch an unsecured loan and it does not work. I have a loan with 14% APR and initially it was for 20000 and I have left about 10000, and because the APR is high I just loose money. I dont have ANY credit searches for the last 12 months, my Callcredit rating is 914, Experian 731, Equifax 891, never missed a payment, still last week have tried Tesco Bank and Santander and both has refused after doing a credit search on me :mad:

Its true that I have 1 credit card and keep it almost always around 2900 with my limit at 3000, but this aside my credit rating is perfect, still cant switch my loan to a better rate, even they refuse to give me any rate, complete refusal??

Any ideas why is this hapenning and what I can do about it?

thank you

cheers

Wolfie

Hi
You start off by saying that you've had no credit searches in the last 12 months but then say that Tesco and santander have both turned you down; so that's 2 credit searches.
You have 2.9k outstanding on a credit card that has a 3k limit; so lenders would see that as bad as you are always extremely close to your limit; appears even worse if you are always making minimum payments?
You also have 10k outstanding on your current loan; so in total you owe 12.9k; how do lenders know that you are definitely going to pay off this loan with the new one you are asking them for? They see it as you are asking for another 10k
Also how much do you earn? If the amount you owe is close to what you earn then you won't get another loan
You would be better off trying to pay these debts off asap and not applying for any more credit yet until you've got them down

wolfie665

thank you Freez, I am saying I do not have any searches before the 2 I have applied, and no they do not see it as I ask for another 10000 because I apply for consolidation loan which simply replaces the existing loan, lenders should be happy to get my service do they?

My salary is way above any payments citeria and I do not had any problems getting the 20000 anyway 2 years ago, so it does not make any sense for me. I want to swicth because 14% APR means I am paying about 300-400 pounds more then I can with decent APR say 8-9 %.

As I have said I do not have any issues with lenders internal criteria, because before the search they do some calculations about the ammount and monthly income and so on.

So my question is it possible to swtich loan at all and what is the problem here?

Does anybody knows what underwritters do at all?

I need expert advice here, not general one.

CLAPTON

what do you earn
do you use an overrdraft

opinions4u

This is simple.

Your current rate is 14% which is actually quite good in the current market.

You have applied for loans with the cheapest providers. These guys will cherry pick who they lend to. You state "I dont own a property" which has a massive negative impact on lenders' credit scoring systems. So they decline you.

Stay where you are an keep paying.

my Callcredit rating is 914, Experian 731, Equifax 891

These guys don't lend you the money, so the rating is fairly meaningless. But it looks to me like even they think you have a risk factor that shouldn't be considered by those lending at the lowest rates on the market.

I have 1 credit card and keep it almost always around 2900 with my limit at 3000

Start actively paying more than the minimum payment and stop spending on the card.

but this aside my credit rating is perfect

No it isn't. The CRAs don't describe it as perfect. You're not a homeowner. You have a credit card knocking on the ceiling of its limit. You want a loan for debt consolidation which is also a possible sign of financial duress - so "perfect" it certainly isn't.