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Good credit record but can't get a loan

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  • Experian_company_representative
    Experian_company_representative Posts: 2,134 Organisation Representative
    Part of the Furniture Combo Breaker
    You can have a perfect credit report score but still be declined if the lender is unhappy with other information it has about you (eg income, your partner's credit history etc etc).

    James jones
    Official Company Representative
    I am an official company representative of Experian. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"

    Posts by James Jones, Neil Stone, Stuart Storey & Joe Standen
  • drbesty
    drbesty Posts: 967 Forumite
    In other words the credit score means !!!!!! all but is a massive cash cow for Experian, so they like everyone to think it's the be all and end all
  • blisteringblue
    blisteringblue Posts: 1,140 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 10 July 2011 at 7:22PM
    Tixy wrote: »
    Have you looked at the snowball calc at all? - http://www.whatsthecost.com/snowball.aspx
    Its quite a useful tool to see how much difference you can make in the overall interest cost by just paying a bit more than the minimum payments and how much quicker you can be debt free.
    If you find out all the APRs and put the info above into the calculator you can compare how much difference you could make by paying say £700 a month rather than the current £640.

    Definitely the way to go about it, I got refused a new 0% card for the first time in years and it was the wake up call I needed. Started with one card, then 2 and then 3 and before I knew it I've 4 cards with 35k on them. Luckily 2 are fairly low life-of-balance but the 2 that are not are starting to hurt. Hence looking for the new 0% to shift it on again but I am too exposed to debt.

    We have a decent household income and after working out a fair (but generous) budget with the other half we've decided to use the snowball method. I use the link quoted above too.

    It will take 39 months to clear everything we owe (46k in total) and all that really is is an additional £130 onto the monthly minimum payment of the highest rate card (next store card 28%). A couple more months and that will be clear, so then we can start on the higher interest credit cards.

    Do some figures on the whatsthecost website and you will be amazed how quickly you make inroads into your debt.
  • thebigM
    thebigM Posts: 12 Forumite
    My wife has no history of bad credit and no judgements against her. I would seem that credit scores are not as important as they are made out to be. I am confident I can take out a loan as I will be consolidating debt and paying less per month than I am at the moment. If I am good at handling debt (as my high score suggests) why is this such as risk? I suppose it's just a question of getting round the system somehow.
  • Tixy
    Tixy Posts: 31,455 Forumite
    Your high score doesn't suggest you are good at handling debt, just good at making payments on time, which isn't necessarily the same thing

    You know you want to consolidate and end up paying less, the lenders don't, and so will treat is as additional debt not replacement debt.
    Don't know of anyway around this fact. If you find one I'm sure there are plenty of others who would be interested to know as yours is common question/situation on these boards.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Hazzinho
    Hazzinho Posts: 742 Forumite
    Your problem is you have a big debt and youre paying the minimum payments. this shows you are struggling to reduce your debts and your balances are going up and up.
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