Problems obtaining a personal loan to pay off a couple of payday loans

nicholson11

I have 2 payday loans that I am desparate to pay off. To do this will cost £1000 in total.

I have tried a couple of places for a £1000 personal loan, which will provide me with much lower monthly repayments than the deferral fees for the payday loans. However I have been declined on each occasion.

According to Experian, my credit score is greater than 900 out of 1000. But I have borrowed a large loan already so that must be counting against me.

Does anyone know of any reputable loan companies that are more lenient when it comes to lending money for loans (apart from dodgy-sounding companies like Aspire Money and Everyday Loans).

Thanks, Neil.

CLAPTON

you have forgotten to tell us how much your total debts are
and how much you earn

nicholson11

For your information, my total debts are £20k and my gross annual salary is £26k.

iolanthe07

Generally kosher loan companies do not like to look at total unsecured debt of more than 50% of income, so you might have difficulties. Try your own bank first; if they won't lend to you then you're more or less in sub-prime territory.

CLAPTON

well, thats a staggering high ratio of debt to income; generally 50% is the highest that most lenders will go

so it's very unlikely that any one will lend you more money

nicholson11

That's interesting. I wasn't aware of the 50% ratio as a rule of thumb. I guess that I will have problems if that is the case.

What do you reckon are my chances of getting a £1000 credit limit increase on one of my credit cards instead ?

RichGold

nicholson11 wrote: »

What do you reckon are my chances of getting a £1000 credit limit increase on one of my credit cards instead ?

Its the same difference as your bank lending you £1000. Its still raises your debt/income ratio. If your card supplier declines you (which is likely) it may just be time to economise.

drbesty

You're obviously living above your means, taking on more debt isnt the answer, you need to reign in your spending