Denied and Confused

A-zaaa

Hello,

I am 23 years old with two credit cards, debt of £750. on a moderate to low income (basically I get paid and after bills im already in the red) and registered on the electrol register.
I wish to apply for a loan of £1000, to pay of my cards and close one of the accounts and have a smaller amount to repay and generally get back on my feet as month to month is a struggle at the moment.

I am being declined and do not know what to do to improve my "poor" credit rating. After checking my report the only thing which is highlighted as "bad" are a few missed payments back in 2008 everything else is either "good" or "excellent"

What on earth do I do to rectify this? I cannot see why I'm being refused and do not know where to turn. One loan company stated they would agree to my application but on the basis I have a guarantor, this I do not have.

Thank you in advance.
A

lawrie28

You will be being declined because you do not have enough income to cover the loan and also the credit card debt.
Despite the fact that you would pay off and close the credit card with the loan, the lender assumes that you may then rack up the CCard debts again, which would then leave you in a position where you are unable to pay the debts.

You need to look at reducing your outgoings and upping your income - look at the relevant boards on here.
On the bright side, more debt is not a way out of being in debt - look at your lifestyle and try and adjust it to fit your budget.

BugsyBrowne

A-zaaa wrote: »

Hello,

I am 23 years old with two credit cards, debt of £750. on a moderate to low income (basically I get paid and after bills im already in the red) and registered on the electrol register.
I wish to apply for a loan of £1000, to pay of my cards and close one of the accounts and have a smaller amount to repay and generally get back on my feet as month to month is a struggle at the moment.

I am being declined and do not know what to do to improve my "poor" credit rating. After checking my report the only thing which is highlighted as "bad" are a few missed payments back in 2008 everything else is either "good" or "excellent"

What on earth do I do to rectify this? I cannot see why I'm being refused and do not know where to turn. One loan company stated they would agree to my application but on the basis I have a guarantor, this I do not have.

Thank you in advance.
A

When a lender checks your report I think they sometimes go back as far as 4 years even more if they want to to check how you have handled credit in the past.
And missed payments in 2008 are not going to do you any favors whatsoever!!

I personally think when people are looking for £1000 loans lenders I think see financial hardship in my opinion.

A-zaaa

Thank you both for your response.
I didnt want to ask for a huge loan as this isnt necessary and I dont want to make problems worse.
I will attempt to further cut back, try looking for a job out of London zone 1 and maybe take up some part time evening work as these seem the only options at this point.
Thanks again.
A

jon_boy75

how can a loan payment be less than credit card payment, which have a minimum of 5% each month? Just pay down your credit cards until they're paid off, but don't close the accounts, so you can build up the green '0's