Tesco loan increase

ampafc

Hi,

Any advice you have would be a great help.

Mp partner currently has a loan from Tesco for £4000. She has paid off approx £1750 of it, having never missed a repayment. On the Tesco site, it says that you can increase your loan after making eight consecutive repayments - she has done that, in fact she has made 12/13 repayments.

She is going to ask for an additional £14K - this is to consolidate all of our joint debt (I will be paying her a standing order every month to ensure that the loan is repayed) - do you think that she has any chance of being accepted? We have gone through the figures, and have calucualted that we would be completely debt free around 9.5 years earlier if we got a loan with an apr of 10% or less - the debt we have is on credit cards, with the interest payments really hurting us.

She is applying herself, as my credit rating is not good enough.

Thanks for reading.

Tixy

What other debts does she currently have in her name?
How much does she earn?

Are you financially associated -any joint accounts, mortgage, loans etc?

ampafc

Thanks Tixy. She has a small credit card which is the only other debt she has. She is linked to me via a joint current account - and she has now been refused the extra loan from Tesco. I assume because of her links to me.



Utterly depressed now, and can't quite see the way forward and out of this situation.

Tixy

It may be because of her link to you - but it may be down to perceived affordability.
£16k (£14k on top of over £2k on the existing loan) is a big loan. You haven't said what she earns but she'd need to be reasonably high earning to get that level of loan.

At the moment lenders generally won't give new credit that takes your total available credit and debts (so including unused credit) to more than 50% of your gross annual income. So if the £16k loan, plus her credit card limit, plus any overdraft limits etc and any other open credit account limits total more than 50% of her wages she may well have been declined because of that.

fozmcfc

14k is a huge amount to be asking on an unsecured loan, unless her annual income is £35k plus, so even a de-associating may not have changed the decision.

If however you do have a bad credit rating, then she could well be better de-associating, otherwise she could get turned down even for small credit amounts in the future.

kavics17

Tesco said the max I could apply was £14999 on my own with a salary of £37k. I did and got accepted so applying for more than that you need to have higher salary I think. Good luck