Problems getting a loan even with a reasonable credit score

MrsCarp

Hi,

I'm looking for some advice. I'm looking to borrow approx 15k to consolidate debt. My husband is in an IVA and we want to pay off the balance with it. I have a reasonably good credit score (903 on my last check). I never miss payments am only using 11% of my available credit. I have approached Santander, Natwest, Sainsbury's and Tesco and been declined by them all. I sent my credit reports (I have dissassociated myself from my DH) to Santander along with a letter and a budget explaining why we wanted to consilidate and what our outgoings were etc. but got nothing back from them. Sainsburys forward me on to Freedom Finance who can offer finance but at outrageous %'s

I dont really want to go down the route of a secured loan, any ideas anyone?

Much appreciated

BoGoF

Your score means nothing so ignore that.

You haven't mentioned details of your income, what available credit you have (amounts) having available credit is not a good thing in the eyes of a potential new lender.

Is it as easy as you say to "disassociate from DH", eg do you have any joint debts such as mortgage. If so you are linked whether you put a note of disassociation or not.

meer53

When did you disassociate from your husband ? Was it before the debts were built up ?

MrsCarp

No after, however the debts are all in his name, related to a business that failled in the credit crunch. Do you think that this makes a difference? We dont have a joint anything! The mortgage is mine and always has been, the bill account is in my name etc etc. By paying off the IVA it would free up approx £200 pm, and any bonuses / pay increases

Tixy

Your husband is in an IVA? which probably means creditors have agreed to accept less than the full amount of debt outstanding and they won't be charging interest.
It doesn't really make sense to borrow money and pay interest on it to pay off a debt with no interest.

If you/husband are struggling to afford the IVA repayments due to changes in your circumstances maybe talk to the IVA provider to see if there might be any chance they would think creditors would agree to reduced payments.

Of if your are struggline to afford everyday living on top of the IVA repayments (which should have been set an an affordable level), then maybe pop over to the debt free wannabe board and post up a statement of affairs for some tips on reducing outgoings / getting things cheaper / cutting back etc.

With regards to association - if your husband does not appear in the financial associates section then you are not associated - but an IVA is publicly searchable and so any potential lender could easily find out that someone at your address is in an IVA.

In terms of telling lenders you want to use the money to pay off the debts and so can afford the repayments, they will always assume this is extra debt on top of your existing outgoings - (as you might decide to blow the money on a car or holiday etc) and so they may well think that you cannot afford the repayments on a new loan on top of all your existing commitments.