Loan Online VS In person

Jago7t

Hi all, just wanted some quick advice.

I've just got a new job and wanted to get a personal loan in order to consolidate some debt and save considerably on interest I'm paying on cards. I have about £12k in credit, I've only missed one payment in 5-6 years and have been tarting and paying minimum whilst I've been unemployed all of which I imagine means my credit rating isn't as good as it was (though no doubt I'd have got a loan a few years ago!).

The new job is very well paid and there's no question I'd cover the loan amount, I've applied to a couple of the lowest interest available online (Sainsburys and Alliance and Leicester) and been refused. I bank with Barclays and Natwest, I wanted to know whether there was any difference in applying online rather than in person or whether the latter would increase my chances of getting the loan as it may have done many years ago?

Many thanks,

J

paddyrg

I think the difference will be minimal with most lenders these days, all they do is type the same details into the computer system, and that decides what rate they offer you.

It may be that you haven't held your new job long enough for them to see regular earnings high enough to make them consider you 'safe', but if you are currently £12k in debt, you would need a salary of £50k before most lenders would consider offering you a consolidation loan - this is because they see it as *extra* credit, not replacement credit, as they cannot force you to pay off those cards with it! In which case, save and pay them off as fast as you can - overpay each premium startiing with the highest interest rate, and work down. The DFW board has more tips and support!

Jago7t

Thanks Paddy. As it happens, the salary is £50k + but that's not helped with the low(er) interest loans online. I did think the same as you that the system is likely rigid mathematical formula that is based on information rather than any individual discretion in these times. Just checking whether it's worth the time going in or whether it'd just be "computer says no"!

I'm getting married soon and also the job is overseas so the loan would also help to provide some capital up front to pay for things until my first pay cheque which is likely needed. I may also enquire about credit increases on one or two cards or perhaps apply for others to shift some to 0%.