Problem with getting loan renewed...

aCid23

Hi there,

I was wondering whether someone here will be able to answer to my problem.

In the summer 2009 (about 18 months ago) I have taken a £10000 loan from my bank - NatWest. I have still about £5700 left to pay in another 18 months. I also have NatWest credit card with balance of £1790 out of £1800 which means it’s maxed up. Long story short, for some time I have been struggling a bit with paying off the loan and credit card so I was hoping to renew my current loan and pay off bot my existing loan and credit card. I also wanted to lower monthly instalments so I applied for £10000 for 4 years.
First time I tried was online in September 2010 but I was declined. I went to the bank and got told that even though I have never missed a payment, am on Electoral Roll, etc. the only problem which could affect my credit score is high balance on credit card and the fact that I actually went over a limit on couple of occasions (mainly because I forgot I was charged payment protection fee which was about £10-15 and took me few quid over a limit which then triggered overlimit fee of £12). So the loan advisor told me to keep my credit card within the limit for the next 3 months and that should do the trick. So last week (4 months after that conversation) I applied for a loan again. The result was exactly the same – I was declined.

Is there any other way for me to get that £10000 loan? I suspect that my credit score suffers due to high credit card balance but in current circumstances I am not able to pay more than minimum which means that credit card balance remains the same. I also suspect that even though I apply for this loan as a debt consolitdation loan, bank still treats it as a separate loan so in fact it is £5700+£1800+£10000 I am appling for so no wonder I am being declined.

I am confused and don’t know what can can I possibly do to get this loan in relatively short time. If there is anyone who has similar experiences I’d be grateful if you suggest any solutions.

And what if I found a way to pay off my existing loan instantly (i.e. ask my parents), how long would it take for me to be eligible for another loan?

Thanks

ILW

You are struggling to keep up at the moment. That could be the reason that they do not want to offer further credit.

CLAPTON

you owe 7,500; why are you applying for 10k consolidation loan?
what did you use the first 10k loan?
how much do you earn?

aCid23

@ILW
I am struggling hence I want to reduce my monthly instalments as well as get rid of my credit card which is nothing more than a pain in the a***

@CLAPTON
I applied for 10k because I also owe bits and pieces to friends (about £500) and also need to buy few things (i.e. new bicycle - about £500 and other stuff I need quite urgently). I also wanted to go skiing with my mate in Feb - although that is something I can live without.
But don't get me wrong I wouldn't apply for it if the guy in the bank wouldn't tell me I should get it.


Anyway what do you think about this:

And what if I found a way to pay off my existing loan instantly (i.e. ask my parents), how long would it take for me to be eligible for another loan?

KingElvis

The loan isn't going to happen I don't think.

Apples2

Damn those mean 'ole banks preventing you from spending £500 on a new bike and a pretty sum for a nice Skiing holiday


Hey - Who reported my signature .... killjoy!!

KingElvis

Apples2 wrote: »

Damn those mean 'ole banks preventing you from spending £500 on a new bike and a pretty sum for a nice Skiing holiday

I thought that, what a nerve these people have got :rotfl:

Coveredinbees!!!!

I think you should take this as a reality check, stop spending and pay off what you owe.

aCid23

KingElvis wrote: »

The loan isn't going to happen I don't think.

It's not going to happen in current circumstances, I know that much.
But how long do you think it would take before they would let me take another loan if for instance I would borrow £5700 from my parents (for a short period of time) to pay off existing one?

Damn those mean 'ole banks preventing you from spending £500 on a new bike and a pretty sum for a nice Skiing holiday

I enjoy your sarcastic comments I really do....:j Please keep them comming if that makes you happy :T

Apples2

aCid23 wrote: »

I enjoy your sarcastic comments I really do....:j Please keep them comming if that makes you happy :T

Beneath the sarcasm is a hidden but serious message.

You REALLY need to change your attitude to debt. You seem happy to spend a lifetime swapping £10k of someone else's money for £15k of your own.

I'll clarify - clear your debts and start saving for the good stuff. your current method will not last forever and you will end up in a FAR worse place later.

Tixy

aCid23 wrote: »

It's not going to happen in current circumstances, I know that much.
But how long do you think it would take before they would let me take another loan if for instance I would borrow £5700 from my parents (for a short period of time) to pay off existing one?



I enjoy your sarcastic comments I really do....:j Please keep them comming if that makes you happy :T

Might get one in 3 months or so, might not get one at all from any bank. Nobody can say because we don't know what is on your credit file or how much you earn. Its far more difficult to get credit now then it was 18months ago.

But for a £10k loan even if you had no other credit lines/overdraft etc at all and a good repayment history you probably need to be earning at least £20k in the current climate.

If you were thinking of getting the folks to lend it to you assuming you would definitely get a loan you can repay them with I would think that was a very dangerous assumption.