999 Credit Score... Yet refused for loan!?

lawrie28

Why not go to your bank and talk it through with them, they may be able to do something. Your own bank are more likely to be flexible in this matter. You could also ask if they could make the loan payment directly to the other loan company so they know the payment has been made.

euphoria87

Tixy wrote: »

Chances are you won't get the higher rate APR consolidation loan for the very same reason. It will look like you cannot afford both loans again. And to be saving only £50 a month is it really worth it if you have to pay the money out for an extra 2years anyway?

You could try talking to your own bank that you have the debts with but they are unlikely to agree to any changes that will mean that they earn less money, its not in their interests to.

It sounds like you are struggling to meet you current commitments each month- is that right? if so then it might be worth heading over the debt free wannabe section and posting up a statement of affairs and asking for some advice to help you meet your current repayments.

Not struggling at all, I live at home etc and my outgoings are minimal, but i would like to start saving hard for a deposit for a mortgage. At the moment saving around £200 a month and living off around £125 disposable a week. If i consolidated my loan and single credit card it would mean i have an extra £100-£150 extra! that’s alot of extra money saved over a year?

I understand how banks would think im a risk if i didnt pay off my previous debt with the loan, but surely you would have to be stupid/crazy not to...?

im very disappointed at the moment, it seems like theres not 1 bank out there that will actually help

lawrie28

euphoria87 wrote: »

Not struggling at all, I live at home etc and my outgoings are minimal, but i would like to start saving hard for a deposit for a mortgage. At the moment saving around £200 a month and living off around £125 disposable a week. If i consolidated my loan and single credit card it would mean i have an extra £100-£150 extra! that’s alot of extra money saved over a year?

I understand how banks would think im a risk if i didnt pay off my previous debt with the loan, but surely you would have to be stupid/crazy not to...?

im very disappointed at the moment, it seems like theres not 1 bank out there that will actually help

Yes, but if you look at the figure you acually repay over the life of the new loan, it will probably be higher than the amount you will repay with the curent one. So if you are saving for a deposit, it will take a few years, so you may as well stay as you are.
And if you are saving £200 per month, well you can clear your credit card in less than 4 months and save moeny onthe interest there as well.

And if you want money to pay your hols, then use 2 months deposit money to do it. Far cheaper than borrowing and paying interest over a few years for it.

As you arein a good posiiton, you need to think and look long term on this one.

Tixy

Definitely don't consider a higher APR loan or extending your loan term for the sake of savings, those savings will earn you far less interest than the additional interest you would end up paying. Better to clear the loan over 2years 11months and then you can save all your disposable income towards the mortgage, rather than be stuck repaying a loan for 5years.

Its not that the banks think you are at risk of just deciding not to pay the new loan back. Its that they are worried you wouldn't be able to.

fozmcfc

£8400 debt on a £21k salary is a lot of money, what happens if your job/income situation changes.

If you are not struggling why are you already £8400 in debt, when you are living at home without hardly any outgoings.

That in itself gets the alarm bells ringing, now you want to consolidate, i.e. end up owing more money over more time.

I can see it now the credit card would be back up to £700 or more if the limit allowed it and you would still owe the loan as well, so end up owing more, even if you did consolidate it.

Get a grip now, without more debt, think about why you owe £8400 when you are living at home, what is it you spent that money on, car/s, gaming consoles, holidays, general nice to haves, but ultimately status items.

Think about how you will service the debt if you lose your income or it is reduced, £8400.

For myself, it's frightening to look back at the financial tightrope I dared to walk for years, the rope could have snapped at anytime and I would have been severely screwed. You don't have to walk that tightrope, but you seem to intend to continue to do so for many more years to come.

CHR15

euphoria87 wrote: »

Not struggling at all, I live at home etc and my outgoings are minimal

You are buried in debt. Please stop kidding yourself.

You are in the best position you will ever be in but you cannot manage your finances. Take the advice above.

In your situation you should have no debt and healthy savings

Blitz01

Not struggling at all, I live at home etc and my outgoings are minimal

As others have said, you ARE struggling as you are nearly £10K in debt with minimal outgoings.