Need some advice for getting a loan

AngryNortherner

Hi all

i am in the process of moving house and its time to get my finances in order, i would like to get a loan to consolidate all debts into one.

i have used a comparison site to try and get information but it comes back with no offers, a few days previous there were options there.

I've checked my rating with equifax, which is also where the comparison site checks and that states my score as in the excellent bracket, so I'm not sure why I'm not being offered anything.

could it be because i have recently had to have checks done for the new property?

any help would be greatly appreciated

Thanks

[Deleted User]

Possibly. But also likely that with all your existing debts, plus the new loan you're looking for, you're asking for way more than your income can tolerate.

What income/debts are we talking about?

PS The reason you don't get a loan just because of an 'excellent' score if because the people who sell the scores and the people who give the loans are unfortunately two entirely different groups of people.

AngryNortherner

i was looking for roughly 13000 and my annual income is 23000, I've just had a call from think money and they're trying to get me to do a consolidation plan, anyone had experience of them before?

Thanks

pheonixrising21

Given what you have said, you may well have been declined because its a consolidation loan and for a brief period yo will have £26k of debt, which is more then you earn in a year.

Lenders don't usually expose themselves to that sort of risk as they have no guarantee that you will use the new £13k to pay off the old £13k.

Maybe one of your current lenders can do it? If one of your current loans is for say £6k, that lender may lend you £13k in total as they can dictate you pay off their current loan first - they can actually do it for you through their systems. that way they only have the other £7k to worry about. It will still be hard though.

Do any lenders in this situation offer a service where they pay off the existing debts for you. E.g. if you have £3000 debt with Lender A and £2000 with Lender B, is there a Lender C who will pay Lenders A and B adn let you owe them £5000, instead of giving you £5000 and hoping you pay Lenders A and B? Isn' this essentially what happens when you buy a new car on finance if your current one has some outstanding?

AngryNortherner

im not sure what to do, i spoke to think money group but i don't like the sound of what they're saying and i also read some reviews which have put me off, if i could consolidate them all into one id be much better off, I'm useless with money hence the issue I'm in at the moment, do you think that approaching my bank (halifax) would likely result in a better outcome?

thanks

chalkie99

From the Think Money website:

We'll search for your best deal
We'll do all the paperwork
We'll do what it takes to find your loan

In other words - they won't lend you the money, they are brokers who are going to take a cut for themselves and, very possibly, charge an arrangement fee before satisfying their end of the bargain by pointing you to something like a guarantor loan at eye-watering interest rates.

Stay clear!

Also, Equifax don't lend money so they can flatter you with an excellent score and not have to worry about it the next morning.

Forget the magical "all my debts in one payment" myth. You still have to pay them. Concentrate instead on paying down the loans with the highest APR's first and head over to the Debt Free Wanabe board for advice on cutting back on expenses.

DCFC79

Can i just ask why has it taken a house move to get your finances in order ?

You should be on top of your finances like every other day.