Refused by my own bank. Apply elsewhere?

Cash_Flow

jock1967 wrote: »

Sounds like your situation was not dissimilar to mine at the moment. Was it recently that Tesco granted you this? Have they a track record as being more 'sympathetic' than other banks?

I don't know about them being "sympathetic" but I have a good history of repaying my debts on time.

On my loan application Tesco asked which debts I would be paying back with the new loan, they also want to know all my card limits and balances and how long I held them form, so if you do apply it's best to have this all to hand so you don't get timed out.

I applied in January and received the funds via FPS about 8 days later, they asked me for one months bank statement which was the only annoying thing I found about the Loan process with them.

jock1967

Tixy wrote: »

Probably will have run a credit search.

Even though you put debt consolidation a lender will always look at worse case scenario, that you don't use it to clear the cards, or run the cards back up again, so they look at whether you can afford to service the old and new debt.

As a general guide it gets harder to get more credit /loans that take you to over 50% debt to income in the current climate.
Thats not to say its impossible to get a consolidation loan in those circumstances - some peope are able to, but its a good indication that you may find it harder.

It makes you wonder why they have a Debt Consolidation option in the first place. Would contacting them and discussing the purpose of the loan make a difference do you think?

j-style_2

I am also with Santander and have been for a good while. Last year I applied for a small loan of about £2k for sorting a couple of things out, as I was in full time work, have no other major credit save for a few quid on a credit card and have not missed any payments the lassie was confused as to why I was refused. She actually got the manager to have a look into it for me and was told my credit rating was good and had no idea why I was refused other than the fact that Santander are very strict when it comes to lending and that she herself was refused a loan and she works for them..!

I was told it would be no problem to apply elsewhere but to may be leave it a couple of months so I reckon you'd be good.

Cash_Flow

.

jock1967 wrote: »

Will my bank have conducted a credit search or used existing info from the last 13 years with them to reach their decision?

This will depend on who you bank with?

jock1967

Cash_Flow wrote: »

I don't know about them being "sympathetic" but I have a good history of repaying my debts on time.

On my loan application Tesco asked which debts I would be paying back with the new loan, they also want to know all my card limits and balances and how long I held them form, so if you do apply it's best to have this all to hand so you don't get timed out.

I applied in January and received the funds via FPS about 8 days later also they did ask me for one months bank statement.

We don't have a good history of repaying debts because we've never had debt before. The unplanned for arrival of son number three 4 years ago is what did for us!

It at least sounds like Tesco have a system that can acknowledge the difference between new and consolidated debt. I just wonder if my two recent credit checks (a new 0% card in January and the loan application this week) have undermined this option for now.

Thanks for your help.

jock1967

Cash_Flow wrote: »

.

This will depend on who you bank with?

Santander, the same bank I requested the loan from.

tell_it_how_it_is

If I were you, while still looking around for a deal, I'd be considering a plan B of analysing your monthly finances and seeing where you can make some savings to enable you to pay off larger chunks of the debt. Obviously I don't know your circumstances, but, without intending to sound condescending, I'd imagine a salary of £46.5k probably gives you a fair chance of doing that? Maybe consider posting an SOA on the Debt-Free Wannabe forum?

jock1967

tell_it_how_it_is wrote: »

If I were you, while still looking around for a deal, I'd be considering a plan B of analysing your monthly finances and seeing where you can make some savings to enable you to pay off larger chunks of the debt. Obviously I don't know your circumstances, but, without intending to sound condescending, I'd imagine a salary of £46.5k probably gives you a fair chance of doing that? Maybe consider posting an SOA on the Debt-Free Wannabe forum?

We don't smoke, drink, have Sky, run two cars or go holidays. We buy food wholesale when possible and buy clothes from ASDA/Primark. We make sure we're on the cheapest tarrif for gas/leccy/phone/broadband etc. We have converted to cheaper life insurance policies to cut costs and use comparison sites to get the cheapest deals on car insurance. £46.5k does sound a lot but that is almost our total income to keep a family of five. I'll have a look at the Debt-free Wannabe forum but don't know what an SOA is.

tell_it_how_it_is

SOA = 'statement of affairs'. On that forum they will be able to point you in the direction of spreadsheet templates on which you can list all your incomings and outgoings, and if you post the results on the forum they can generally give some good cost cutting advice.