Credit help and advice, pls?

jobey999

I was married in Dec '10, we had a big wonderful wedding. A lot of which we used credit cards to pay for, no.1 because we didn't know how much we would need for an upfront loan and no.2 for consumer protection from VISA.
All went fab and I was pretty much convinced that when my existing loan with my main bank ended (final payment June '11) I would have no problem getting another to clear my credit cards. The new monthly payment for the amount needed would be the same if not slightly less than the one paid over the past few years. I have never missed of defaulted on any credit, which my credit file confirms. My affordability is absolutely fine, and confirmed by my bank.
Despite all this, my main bank has out right refused my application, and I was told this was due to a low credit score due to the amount I owe being so close to my limit available.
The loan would clear all these and enable me to close them down and be guaranteed to be debt free in a set period of time with more disposable income each month to ensure further credit wouldn't be required.
I don't understand why my main bank would turn me down when I have such a good relationship with them. If they won't lend to me then I wouldn't expect anybody else to with reasonable rates.
My fear now is that as they special rates are coming to an end I will find myself struggling even more thus making my credit score even worse.
I have never been in this situation before, I earn a very good wage, can afford repayments but just won't be given the chance due to credit score.
Can anybody help please, I'm not sure what to do next?
I spoke with a debt counsellor who said my situation doesn't currently warrant specialist debt help as I am still making minimum payments while paying my bills on time, however I would rather improve my situation now rather than wait until this happens.
I apologize for ranting, lol, but I'm new to this and am getting a little panicky since unexpectedly being declined. Thanx

Tixy

Your issue is that your bank (or any lender) won't look as this as being an alternative way of financing the debt that you already have but will assess you affordability based on this being a new loan on top of all your existing debts/credit card limits etc. The reason being they cannot know you will use the loan to consolidate or that if you do that you won't go out and rack up the credit cards again.
So they look at worse case scenario that you blow this money and end up in twice as much debt -they've probably assessed you could not afford to service it all.

KingElvis

I would imagine your debt to earning is all to !!!!.

jobey999

Thank you for your reply. I can get rid of my biggest card which would half what I owe with help from my husband, after all it was for both of us.
As I earn much more than he it's all currently in my name, I wonder if we share it out and I close what I can I may be less of a risk to them?
Your right of course, seeing it from a different prospective, only I have absolute guarantee that it will all be cleared.
My only worry now is, now I have a decline on file how long it will be before my score will improve enough to be accepted.
I've been told every application is detrimental to scores also, which is why I haven't panicked contacting other lenders who don't know me.

Tixy

One application won't make much difference to your credit rating. But its not advised to have lots in a short space of time, as a guide people recommend up to 3 in a 6month period.
You might have more luck if OH applies if he doesn't have any/much existing debt.

What do you earn and what does husband earn?
What are you existing debts? and total credit (used and unused) and what are his?
How much was the loan you wanted to apply for?

jobey999

The loan was for £15K which is the amount outstanding across all the cards (4cards). However there are accounts listed on my file of which are clear and I'd forgotten about, most of which now appear to have low limits probably due to not using them for such a long time.
I would say there's only about £2K min available. 1 of the cards expire nxt month and I've asked them not to send another card while I pay the balance off.
When I clear my biggest card, which I'm hoping to do shortly, that will clear £7k of credit.
I earn in excess of £2.5K net per month, but my husband earns roughly £800 and already has a loan in his name, which to be honest I was surprised he'd managed to get. This has a few years left to run.
I'd completely forgotten, but we bought a new sofa on 0% a few months back, which will also have gone through with a credit check :(

Tixy

To give you a rough idea in the current climate most lenders won't give you new lending that takes you to total credit of over 50% of your gross annual income.

I guess your income is around £40k? so if you have £15k used debt and £2k unused and apply for a £15k loan then you would be looking at total exposure of £32k, way over what people are managing to obtain at the moment.

If you have open unused card accounts you could see if you might be able to get some BT deals from them to move some of your debt to. Aside from that you might need just throw everything you can at the debts for now and wait until you've paid some more off your debt before applying for new cards or a smaller loan or something.