Can't get loan withh 977 credit score! Help!

Engimum

Hi all MSE's! I have a debt of 13 000 on my 3 credit cards (25% interest - auch!!!) altoghether from studying Masters degree, for which I could not get a student loan. I missed 3 payments in the last 2 years. Since September I landed a well paid job and worked very hard on improving my score to 977 on Experian. My bank (Nat West) has just refused me a consolidation loan, even though I am a good earner and have an excelent score. What shall I do? I feel totally ripped off every month, paying about 350/ month towards the cards, out of which only about 50 goes towards repayments? Can you help please..? I understand that my score is most likely damaged now from the refused credit.Thanks You

Tixy

Hi

A credit score doesn't take into account many things that a potential lender will consider.

Your credit rating will not be damaged by a single application. Your score might have dropped a few points but your score is a waste of money anyway.

You currently owe £13000? how much of any of this is to your current bank?
What size loan did you apply for?
How much do you earn a year?
Do you have an overdraft with your bank? if so do you use it every month?
do you pay the minimum payments on your cards or more every month?

It may well be the case that you have been refused due to already having a high debt to income ratio and your bank is not prepared to lend you any further money on top of this (you know its for consolidation but they cannot be certain you won't run up the cards and end up in more debt).

Engimum

I applied for 10000. I owe 10500 to Barclaycard, the rest to my bank. I think You are wright, it's must be also due to the fact that even though my husband pays the rent, I am liable to pay in case he ever failed. But how do I get out of it? I can pay it off confortably, but can not get the loan. Do you think an application for a smaller amount - like 5000 in about two weeks might work, and than use balance transfers for the rest?

DCFC79

Why not put your effort into paying off the loan with highest apr ?

Tixy

Really impossible to guess if a smaller application might be accepted without knowing far more information.

How much you earn is critical to how much you might be able to borrow in total (existing debts and whatever else you apply for).

You mention balance transferring - do you already have another card that you are able to do a balance transfer?

Engimum

Can I send a privite message so not discussing the salary in public?

CLAPTON

Engimum wrote: »

Can I send a privite message so not discussing the salary in public?

consider whether anyone knows who you are here

Tixy

As a rough guide, in the current climate lenders seem unwilling to give further loans/credit if that will take your total debt to above 50% of your annual salary.

They'll take into account anything you want to pay off with them (as they can take away an overdraft or credit card you owe them and ensure these are paid off first) but anything owed to another lender they will assume will not be paid off and so will be additional debt.

So as an example if you earn £30k pa and owe £15k you will probably find it very difficult to be accepted for any more credit (its not an exact science and some people will be able to get more than this - but it is a good guideline to use)

somethingcorporate

Unfortunately debt:salary ratio is likely to be the crux of your rejection (and those defaults will not help either).

BugsyBrowne

Natwest thinks your credit score is sh*t and it probably is 'if not they would of lent you the money.

Melissa22_Mum

BugsyBrowne wrote: »

Natwest thinks your credit score is sh*t and it probably is 'if not they would of lent you the money.

:rotfl:Wow that was helpful!

Could you not apply for a 0% cc with your bank?
My credit score is good, not great and I'm not the main income earner however I get CTC, I applied for a 0% as I was signed up in store. Thought I may aswell give it a try after a bit of protesting. I got rejected for 3,000. BUT only because I didn't actually earn and the amount requested was to much in relation to how much I personally recieve. If I'd have made a joint app I probably would have been successful. They did tell me why I was rejected which I appreciated, usually you just get the same thing about credit scores and being 'unsuccessful on this occassion'

Apologies, I just wrote in store. It was in Sainsburys.