No idea why !?

Ralphy101

Hi all

Wondered if anybody can give me any insight.

I currently have £3k, debt - £1.5k on a debit card (HSBC) and £1.5k on a credit card (Barclaycard)

I earn £20k a year.

I wanted to get a loan to consoldate my debts and stretch it over a couple of years, as I have a little one and house to maintain, I thought this is the best option for me.

I do have another current account with Natwest, and a step account with natwest to which i use. My salary gets paid into HSBC and i usually use the online banking to pay off bills. Then transfer "spends" to natwest.

I applied with natwest for a loan of £3k, to which i was declined.

I applied for my experian credit report, and i cant see anything obvious that is tripping me up.

I have moved house alot in the past few years. could this be the reason why?

In addition all my credit acconunts ( open and settled) are appearing on my report twice - for instance C1 account is also the same as C13, C2 - C14 and so on? Is this correct?

iolanthe07

I have moved house alot in the past few years. could this be the reason why?


Yes. Lenders really don't like this because it seems to them (unfairly, perhaps) that your life is unsettled and they might not be able to keep track of you. Also, make sure you are on the Register of Electors (sometimes erroneously called the 'Electoral Roll').

Hax

Ralphy101 wrote: »

£1.5k on a debit card (HSBC)

You can't have "credit" on a debit card - so I assume you mean "credit card".

What are the limits on your credit cards? If you're close to those limits, that will have a negative impact as it will look to another lender as if you are struggling.

Ralphy101 wrote: »

I have moved house alot in the past few years. could this be the reason why?

How long have you lived at your current address? And are you on the electoral register at that address. If so, for how long?

Ralphy101 wrote: »

In addition all my credit acconunts ( open and settled) are appearing on my report twice - for instance C1 account is also the same as C13, C2 - C14 and so on? Is this correct?

No, this isn't normal - my credit report only lists each account once. Might be worthwhile phoning Experian and asking them about it - they can probably consolidate the reports into one.

Ralphy101

Many thanks for your reply.

Debit card i mean - Overdraft apologies, and yes i am maxed out on both - hence the need for a loan to condsoldate and try to bring my finances into some structered order.

I am not on the elec. role, at the moment, but whether it makes a difference or not, i was on the elec role for the same property from 2004 - 2007, ( moved back to a former property) so i dont know if this would have any bearing?

I have emailed experian in light of your comments, regarding duplications.

Do you think the asking for £3k in light of a £20k salary is too unreasonable?

Hax

A £3K loan will bring your total debt to £6K - as far as the banks will see it. Obviously I know and you know that you are intending to use the loan to clear your existing debts - but the bank won't necessarily see it like that - they'll just see the total exposure and the fact you're maxed out on your current credit accounts.

As for the electoral role - that will have a huge negative impact on you. It's one of the primary methods of proof that you live at the address you enter on the application form. I wouldn't bother applying for any more loans until the electoral register has been updated to show you at your current address.

It's currently being said that banks don't like to lend to someone if that brings their available credit above 50% of their salary - so £3K should be perfectly feasible. If you are going to apply, I'd try with one of the banks you already have accounts with - probably HSBC as then you could get them to remove the overdraft facility and replace the outstanding OD balance with part of the loan amount.

That said, you haven't said what the interest rates are on the OD and CC. Without a doubt, the best option for the CC debt would be to get a 0% offer on another CC and transfer the balance over. No guarantee that you would get such an offer - but it would be my first thought.

Ralphy101

Again, thanks for your advice really appreicate it.


Would i not be better applying with natwest? Since i have had this looming o/d with hsbc for some time now... I would imagine my internal bank score with them is short to pieces... To the contary with natwest i have no overdraft on the current account and money is going in and out every month with no negative circumstance?

Hax

Have you ever gone OVER your overdraft limit? That won't be a great thing. And I agree that living in your overdraft won't portray your finances in their best light, but the way I see it is: HSBC see your full salary coming in each month and it's them you have your overdraft with. So, if you can convince them that part of the loan is to clear your overdraft, then they will see that available credit isn't increasing by £3K and they should be able to just use part of the loan to clear the overdraft (which they can then remove from your account) without you really getting your hands on the money and being able to "go silly" with it.

I really would consider looking for a 0% card as your first step. Then, if you can transfer your CC balance to the 0% card, you just pay the bare minimum off that and throw the excess at clearing your OD. You could maybe arrange with HSBC for them to reduce your OD limit by say £50 or £100 every month - thereby removing your ability to run it back up.

Anyway, it's not worth applying for anything until you get yourself on the electoral register.

P.S. Are there any savings you can make on your monthly expenditure? For example, do you have a £90 Sky package that you could cancel or reduce?

Ralphy101

To cut a long story short..

I am currently living away from my partner and child ( long story), and i cannot move into the property that she lives in as it is owned by her step dad who will not allow me to move in.

So we want to move out asap hence the loan, and the spreading of it.

the barclaycard is 0% untill oct - and i can perhaps chip away at that ( £115 as month ).

however like i said, we want to get things going asap, and consolodating everything would just speed things up, and make things more structered ( one payement coming out).