Refused a loan from my bank

opinions4u

toxtethlad wrote: »

My debts have decreased in the past three years so I dont think im sliding the wrong way im actually doing okay. I owed 16,000 at the begining of 2008, I would have paid more off my debts as i was living at home with my parents but I bought my home in 2009 and had to pay a large deposit of 12,500. I now owe around the 8,000 figure. My concern is not really the debt as it is managable i just wanted one payment each month rather than 4 seperate ones. I dont juggle crdeit cards around or do balance transfers maybe i should look into that? I just thought it odd the bank refusing me a loan when i have such a good history but now i do see why, many thanks

Thanks for the answer. Certainly not the one I was expecting!

You may simply be a victim of "low rate, cherry pick those you lend to" syndrome. Lenders like Tesco and Sainsbury have a market leading rate but decline 80% of the applicants and only lend to those who are squeaky clean (e.g. homeowner at same addresss for 3 years, limited other credit etc). As others have hinted, consolidation loans also cause concerns. In the 1990s my then employer wouldn't do any personal loans for consolidation.

If you can achieve sustainably lower rates from shuffling the credit cards (0% deals, 6.9% life of balance deals etc) then consider it. But it's probably worth one more application to a low rate loan provider who you have some sort of financial relationship with.

Good luck.