credit score/loan

lurko

Hi, on my HSBC all together is 8k on together with my new credit card is 10k. im paying all on time and i can afford to pay them. however i have noted that my ex boyfriend name is there as well as we had joing account in 2009. that account has been closed in 2010. i called experia and informed them. do u think i should wait until end of the month while they update the record to apply for a new loan?

lurko

DCFC79 wrote: »

Yes i understand now

ok, so u think this can be a problem?

DevCoder

Just to clarify, you have £10k in total of existing debt, be it the loans/overdraft or credit cards?

DevCoder

10K on your income of 25K would be a ratio of 40%
15K would be 60%

lurko

krisdorey wrote: »

10K on your income of 25K would be a ratio of 40%
15K would be 60%

sorry, what this is mean? i need only 6k to borrow.

DevCoder

It means that at present, if you owe £10k on existing debt then your outgoings (for debt only) is 40% of your income (your wage).

Borrowing another 6K brings your total debt owing to £16K and as your income is still £25K then the ratio is increased to 64%.

Very few lenders will offer you a loan which has such a high percentage ratio of your total debt.

Indeed mortgages used to want around 40% maximum outgoing including the mortgage itself before they were willing to lend, and that was a secured loan (obviously).

Even if you are thinking of a consolidation loan where the 6K will pay off a percentage of your other debt then lenders tend not to go for it, because you cannot prove that you just won't go and rack up the same debt on the credit cards et cetera, therefore leaving yourself with double the debt you had.

If you really have 10K of existing debt and have an income of 25K and want to borrow another 6K then you need to pay off some of your existing debt, I'd say at least 4-5K to bring you around the 50% ratio that a few lenders might agree to.

lurko

aah, understand. And if i would go for lower amount? i need 6K but if i can get at least 4K it would help me as well.

Do you think it is possible to do so?

lurko

i also think that as my ex boyfriend name is still on it as we had joint account, might be effecting my credit report too? he had very bad credit. I have asked experia to remove him.