Can't get a Loan but good credit???

saxony69

My husband has good credit, and has never missed a payment on any of his credit aggrements, he has applied for a loan from Tescos and the declined him, then his bank RBS said no without even doing a credit check. Is it a waste of time applying elsewhere? Can anyone get a loan at the moment??
Thanks

Tixy

Hi
If his bank declined him before a credit check then its likely either to do with how he has run his accounts in the past (eg if he had gone over overdraft limits regularly etc) or it might well be done to affordability based on his income, other debts and available credit etc.

ryanm198

Tixy wrote: »

Hi
or it might well be done to affordability based on his income, other debts and available credit etc.

Agreed

That's what it'll be affordability, it depends on how much your husband was looking to loan and how much he earns?

I recently got turned down by Salisburys but had a chat with my bank and decided to re-apply with them and was accepted, so I suppose its whether you tick their boxes.

Enfieldian

Who says he has "good" credit?

paddyrg

For what it's worth, I was heading overseas on extended holiday. I had 10's of thousands in the bank in cash (I used to have a really well paid job!) and wanted to take a credit card with me for convenience. I'd never had any kind of credit/loans/etc, so had no credit history...and couldn't get a card!! I ended up borrowing a grand for a year which I didn't need to get a credit history so I could get a credit card. Maybe he's in the same position!!

beachbhoy

Tesco loans are managed by RBS so he has really tried the same company twice.

paulmcerlean

beachbhoy wrote: »

Tesco loans are managed by RBS so he has really tried the same company twice.

No they are not. Tesco now have a banking licence of their own.

saxony69

Enfieldian wrote: »

Who says he has "good" credit?

Well he checked his credit file and it says good credit, there is no adverse info, as he has never missed a payment on any bills or debts ever, he would just like to pay off two credit cards and his overdraft to have one payment going out.

Do banks and lenders not like it if you want the loan for debt consolidation?

Should he just give up trying to get a loan?

MFWannabe

How much was he looking to borrow? How does that compare to how much he earns?
The problem with consolidation loans is that the lender cannot be guaranteed that you will pay off the current debts; so as they see it if you are asking to borrow 10k for example to pay off 10k of current debt then you could have borrowing of 20k
Consolidation loans are very hard to get these days and if your husband has already applied for 2 in a short space of time then i wouldn't recommend applying for any more.
Perhaps he would be better appling for a 0% card to move some of the current credit card debt to?
But this will depend on debt to income ratio

saxony69

So what if he can't get a 0% card? How do you get out of the cycle and sort things out? He was asking for £15000 and he earns £27500 gross. I can see that looks bad now. Any advice how to get out of this mess though? He has two credit cards, each £4000 and a £4200 overdraft, he pays the minimum without fail but cannot afford any more. Is he stuck?

Thank you all for your courtesy and politeness, some sites I have been on have very rude people.

MFWannabe

saxony69 wrote: »

So what if he can't get a 0% card? How do you get out of the cycle and sort things out? He was asking for £15000 and he earns £27500 gross. I can see that looks bad now. Any advice how to get out of this mess though? He has two credit cards, each £4000 and a £4200 overdraft, he pays the minimum without fail but cannot afford any more. Is he stuck?

Thank you all for your courtesy and politeness, some sites I have been on have very rude people.

His debts are over half his salary so that may well be why he is also being refused.
Take a deep breath; you have come to exactly the right place to sort out these debts; even if he can't get a 0% deal
First thing i would do is apply for a 0% card (make sure it's not for a card in the same 'group' as the ones he's already got) i.e if he has a Virgin card then don't apply for an MBNA card. If this gets declined don't panic; but you won't know until you try
Also post an soa on the Debt free wannabe forum on this site; there's lots of people on there who have been and are in exactly the same situation as yourselves. They will be able to give you some great advice where you can make some cutbacks to pay off these debts and other advice where you could get some help