Confused about Halifax

confused..com_2

I've only ever banked with the Halifax in the past I have had credit problems and these have now been ressolved I have 1 satisfied CCJ on my credit file from July 2006 for £320.

I have 1 late payment on my credit file from Oct 2007 (now closed) every other account since paid on time.

This is my info:

Vanquis £327 limit £1,250 - PAID IN FULL
Advantage Finance £6633 18 months into a 48 month agreement
Very £32 limit £1800 - PAID IN FULL
Halifax Mortgage £40,735

I earn £24750 pa, I have an Halifax Ultimate Reward Account and got the above mortgage in June last year with no problems.

Today I applied for a £7k personal loan and was turned down by the underwriter, I was accepted in principle with 8%apr. I know it could be the CCJ or the amount of finance I have but I'm confused as what to do next.

Can anyone recommend a company please or any advice I was hoping to use the loan to pay for a private caravan.

I have used credit expert for the information above.

paddyrg

Apply to another loan company? Not sure what the question is?

confused..com_2

paddyrg wrote: »

Apply to another loan company? Not sure what the question is?

Just wondering what peoples thoughts were on the reason I was turned down, I don't want to get into the trying and getting turned down routine.

Or if anyone could recommend another company that may accept me for a loan.

Thanks

Ive_A_Horse_Outside

~25k per year is approx £1500 per month into your account.

Take in mortgage payments; loan payments; credit card payments and living costs you'll need most of that 1500 as it is.

In otherwords the underwirters are thinking "toorisky..com"

confused..com_2

I understand about cost of living but when everything is paid I still have a reasonable amount left

Coveredinbees!!!!

if your saying you have £1500 plus left why not pay off the credit cards and save up for a few months then you won't need a loan

paddyrg

At £1500 surplus a month you're only looking at 5 months to save £7500 - so ot may be worth thinking if you can wait?

Maybe your bank just thinks they want to spread their risk a little wider as they already have a few outstanding debts with you, maybe they have already hit target this month, maybe they are terminating that loan product, maybe they are expecting interest rises which would squeeze your existing debts...so hard to tell. All you can be sure of is that each lender will use their own risk assessments, so some will welcome you where others pass. It will just be a case of doing the legwork, really.

Extra thoughts...

£33/month on cards - they usually have a 3% minimum payment, so does this mean you've got about a grand on the card? With £1500/month free, just pay that card off in full, that'll save you paying hefty interest. Also the £250-odd a month on the car - is that loan payments or running costs? If loan payments, can you settle sooner again to avoid interest?

fozmcfc

£1500 + spare a month and you want a loan, sorry but something certainly doesn't add up here.

With such and excess of spare money, surely you could pay off the CC and Very straight away, thus saving some interest every month. Paying £13 towards the Vanquis card with so much spare money is ridiculous.

Assumably you want the £7000 to have 1 monthly payment, but with consolidation loans they will add £7000 to what you already have outstanding, because there is nothing to stop you from spending the £7000 and not paying the other debt with it.

So in effect £14,000 debt on a salary of £24,500. Even someone with a completely perfect record wouldn't be guaranteed in getting a £7000 loan.

Me still thinks this has to be a windup or far from the full story hasn't been told.

paulmcerlean

Why are you paying £13 a month off a 40%APR credit card if you have £1500 surplus cash each month?

stqueen

You could clear the balance of the Vanquis card and your Very account instantly if you have £1500 spare each month! Excluding your mortgage, that then leaves only Advantage finance.

Is there any way you could use your £1500 a month surplus to save to buy the caravan instead of having to take out a loan to purchase it? I can tell you the feeling of satisfaction knowing that you worked hard to save the cash to buy it is a millions times better than getting into debt for it.

confused..com_2

I've just paid the credit card off in full should I close the account or keep it open?

Looking at experian before the card was paid this is the summary

Number of credit accounts (including those settled)13
Amount of available credit (excluding mortgages) £2,691
% of your total credit being used (excluding mortgages) 11%
Amount of outstanding debt (excluding mortgages and defaults) £6,992
Number of accounts overdue 0
Number of missed or late repayments in the last year 0


The reason for the loan was the purchase a caravan privately and included site fees ect, and i'm not allowed to pay the car finance off early I've asked before.

I'm also just about to pay off the very account so do I close that too?, I only used them to build my credit back up.