Turned down for a personal loan!

Puzzled38

I have been refused a consolidation loan to pay off my existing loan and credit cards, as I have just had a decent payrise and bonus so can pay off a chunk personally. I have a mortgage and dont miss payments etc, so not sure why I was refused. It is with my existing lender Sainsburys.

What lenders are more likely to lend to me?

Tixy

Your own bank is often the one most likely to lend to you.
The problem with obtaining a consolidation loan is that the lender cannot be certain you will use it for consolidation (aside from the accounts with that particular bank) so will view it as additional lending on top of what you already know. For a lot of people that take them way over any affordability calculations the lender does based on the borrowers income etc.

How much do you owe on all your debts excluding your mortgage? how much did you try to borrow? how much do you earn?

Puzzled38

Earn good money, looking to borrow what I owe but on 1 loan rather than cards and loan! Looking to borrow 15% of salary!!

Firefox1975

Puzzled38 wrote: »

Earn good money, looking to borrow what I owe but on 1 loan rather than cards and loan! Looking to borrow 15% of salary!!

so you have answered our question by saying you wish to borrow 15% of x so you can pay off w,y and z and then have one loan repayment of, we'll call it, s to keep it simple.

seems clear enough for me then. I think all financial institions will lend you what you need.

(Nudge,nudge - you haven't given us enough info to help you!)

somethingcorporate

So it means you will have at least 30% of your annual salary as credit. What about other financial commitments / dependents etc?

You haven't given us enough to go on I am afraid.

Your own bank is probably your best bet as a starting point.

dresdendave

OP, you've just had a payrise and a bonus. Rather than getting a consolidation loan, which rarely solve debt issues, why not use the additional disposable income you now have to increase your payments to your cards and get them paid off asap. Much simpler, no fees, searches, paperwork etc.