Loan / Credit Cards problems.

North_Star_2

Hi all,

Really looking for some helpful advice here.

I am Self Employed and regular bring home between £3500-£5000 per month NET, now before I am asked why do I need a loan etc its more a case of being in debt due to work and my mid 20's why I need a loan right now.

On Experian my Credit Score is EXCELLENT a score of 967 and all previous and present financial agreements have always been paid on time and/or settled, there are about 33 in my history all show satisfactory (mainly about 9 car loans but all paid off now) and I am on the Electarol Roll.

Currently I have a mortgage (£130,000 ball park figure), Credit Card with £5500 on (limit £6000) and 2 loans 1 with £19,000 left (5yrs remain) and the other with £3700 left (with 2 years remain) and a car on HP with 2yrs remaining or £7000 if I were to pay it off.

My question is : How come every single application for a loan to consolidate or repay other existing finance is always REJECTED regardless of who I go too, I applied for £10,000 and then lowered to £6,000 and nowhere will touch me, I do not understand the point in having the Credit Score system because my score is very good yet nobody wants to help me out and even when I tried for a Credit Card to Balance Transfer the larger amount so I can pay it off quicker they reject me too ?

Any advice would be brilliant, anybody sarcastic or just looking to sneer at please keep those opinions to yourself, many thanks MSE people.

Consumerist

I would say it is a combination of:

(a) £35,000 unsecured debt
(b) £130,000 secured debt
(c) Self-employed status
(d) Numerous recent applications on your credit file.

If you have applied several times recently then I would suggest waiting say 6 months before making further applications.

Edit
In general, you should ask yourself, or others, this question after the very first rejection.

CLAPTON

it only makes sense to refinance if you are paying high APR on your current debts
it may be best simply to snowball the debts... baiscally use all spare money to pay the debt with the largest APR first until it's clear and then move on the the one with the next highest APR
if you post up your full fincancial details it would be easier to offer better advice
http://www.makesenseofcards.com/soacalc.html

Consumerist

North_Star wrote: »

. . . its more a case of being in debt due to work . . .

Would you care to expand?

Although I tried to answer the question you asked, CLAPTON raises the valid point that, perhaps, you were asking the wrong question. A re-organisation of your finances may be more appropriate for you than another loan.

jonesMUFCforever

Out of the £3500-£5000 NET you claim each month that you earn how much do you spend?

North_Star_2

Ok, my monthly outgoings are £2200 if you take into account all my bills and card payments, now being self employed I have to put money away each month for my VAT quarterly and TAX 6 monthly aswell as paying for my Road Fund License yearly. Also my HGV broke down last January and cost £6000 to fix (hence the credit card got max'd) to get back on the road and then in August it cost £3500 to get thru an MOT so paired with losing most of Decembers work last winter and january with the snow and ice losing me week after week and the breakdown and then I am off again the majority of december due to the weather again I am regularily hitting my overdraft limit each month of £4000 whilst also trying to pay the garage monthly for the money I owe them for fixing my truck.

I love my job and it is ideal to earn decent money when not restricted by weather providing hard work is put in which I do, I wanted to take a loan out to eliminate my other loan and to pay my credit card off and leave a little aside to ride the december storm out and was gutted to not be approved despite thinking i was perfect with my Experian credit score but perhaps its a blessing in disguise not being given a further loan and getting further into debt.

I wish I could put money away but its so difficult right now because what I earn just about covers what I pay out and I pay large sums off my cards and debt to try get them down quickly but as a result always end up so overdrawn, my own fault I know and like advice I gave another poster its a long road that can only be tackled via hard work.

Tixy

Hi

I think it might still be worth you doing a statement of affairs using the link Clapton gave in post 3 above. Even if you don't want to post it on here it might be useful for yourself to see how long it should take to start clearing your debt.

I would suggest if you do it you only put your monthly income in based on what you earn after vat and tax have been accounted for (and of course after business expenses such as running your HGV) then you'll have a true picture of your take home pay - oh and if you regularly are unable to earn for 1 month of so of the year due to weather then rather than put in your monthly income figure you may be better off putting in 11/12 of that figure so that you have smoothed out your income for the year. That will give you a better base point for doing your budget.

When you are looking which debt to pay the most of, consider the APR on your overdraft as well as the APRs on your credit cards. In fact you might want to look at the snowball calculator (also on the makesenseofcards site) which will use your statement of affairs figures to work out the best way to pay off your debts to minimise interest and how long it would take you to become debt free.:)

CLAPTON

without the full financial details it's really impossible to understand your situation
like debt details APRs etc
income is very confused... you say you bring home 3,500 to 5,000 NET but have to save for VAT, tax , license and some winter months your income is low; which seems to say your averge NET income is a lot lot lower
you would be advised to work out a proper yearly budget, allowing for poor months, allowing for VAT, tax, van repairs (presumably a business expense etc.
and understanding how much real income you have and to match your expenses to that income.