Need help getting a loan

mariesococo

Hi,

I recently applied for a £3000 loan through tesco as I am currently in my overdraft (due to university, limit is £2000) so wanted to pay this off and also I need the rest of the money as I am moving house so need help with deposit etc. When I put my application through I was declined due to my 'high level of borrowing'.

I went to check my credit reports and with Equifax is was listed as fair - every part was highlighted green for good/excellent expect for electrol roll as I had been in my current property less than 3 years.

However, then I checked my report with Experian and it was saying I have a 'poor' rating for the following reasons:

The usage of your available credit indicates a higher risk
The value of your highest credit limit indicates a higher risk.
You have recently opened 1 or more new credit accounts.
You have no successfully settled non-mail order accounts.
The age of your accounts indicates lenders are likely to view you as higher risk

I also have 2x credit cards with very small limits (£200 each on which I pay off in full every month. I opened these v close together as I needed to pay for some flights however due to the small limit I applied for another, maybe in hindsight this was a bad idea but as I pay in full I can easily close one if need be.

I am confused by all these factors however giving me such a bad rating? I've never missed a payment (always pay in full) and I have no deafults or CCJ's.

So basically what I am trying t have I screwed my chances of getting an unsecured loan? I guess going to my bank is out of the question so is there any other alternatives?

Thanks

Tixy

Is the only credit you have open a £2k limit overdraft and a 2 x £200 credit cards? So a total availale credit of £2400?

And you were looking to borrow £3k so that would give a new maximum credit figure of £5400?

And what are the outstanding balance on these (per your credit files)?

And how much do you earn currently? and how recently did you start that job?

Going to your own bank isn't out of the question - they might be more likely to lend to you - because they'll be able to ensure £2k is used agains the overdraft so will know you'll only be left with maximum credit of £3400 (assuming they take your overdraft off you).

mariesococo

Hi,

Thanks for your reply.

Yes, that is all the credit I have available to myself, I also have a mobile phone contract (£15 a month) if that also counts?

I am currently in my overdraft so when I get my monthly wages I am still in my overdraft. I am on £21k a year and have been in my current job for nearly 1.5 years.

I would like my overdraft paid off so £2000 is to pay that and then my overdraft limit decreased (to about £100 in case of emergencies) and then the other £1000 is just to help me with my deposit.

Other than my bank, are there any other likely lenders?

ronson49

I am in a similar position to clear my student overdraft plus various old bills etc. 2900 is what I need over 3 years.

I got hit 18 months ago with a DWP, HMRC and SLC bill and Santander gave me a loan of 2k. I currently owe 600 on that.

So you could try them.

I am 18k with 4k overtime for 3 years.

I need 3 grand for 3 years which would tally at about 110 a month for my entire debt payments. Without this, times are going to be tough for a while. I have tried even my own bank. No luck.

Is there any difference between applying for a loan and applying for a credit card?

DCFC79

ronson49 wrote: »

I am in a similar position to clear my student overdraft plus various old bills etc. 2900 is what I need over 3 years.

I got hit 18 months ago with a DWP, HMRC and SLC bill and Santander gave me a loan of 2k. I currently owe 600 on that.

So you could try them.

I am 18k with 4k overtime for 3 years.

I need 3 grand for 3 years which would tally at about 110 a month for my entire debt payments. Without this, times are going to be tough for a while. I have tried even my own bank. No luck.

Is there any difference between applying for a loan and applying for a credit card?

Can you not make cutbacks on stuff ?

ruky_uk

If you need to get a small loan, without much interest payable on it have you tried signing up and joining your local credit union? They are much better thank high street banks and what you pay them in interest is considerably lower than you would elsehwhere - plus, frm what i understand, they do not usually do a credit check or rely on this.

Downside is you need to be a member for 3 months before they'll consider a loan application. Minimum amount you have to save each month is £1.