Loan v Credit Cx

tommytynan123

[FONT=Arial, sans-serif]If poss please a little guidance or verification: Son works f/t (same employer for 3 years) and pay is about £975 net pcm. Same address for last 7 years. [/FONT]


[FONT=Arial, sans-serif]Has an o/draft agreed at £1200 which stands at 'overdrawn £1100' and staying static as he is struggling to make headway to reduce it. Never exceeded.[/FONT]
[FONT=Arial, sans-serif]Has a credit card (limit £700) and store card (limit £1000) and both are close to limit. Never missed a payment.[/FONT]
[FONT=Arial, sans-serif]Has student loans of £lots linked to income.[/FONT]


[FONT=Arial, sans-serif]He then tried to consolidate with a loan using mainstream lenders and was told 'no'[/FONT]
[FONT=Arial, sans-serif]I think I am right in saying that the address is not part of it and I say that because about 5 years ago, following a trauma, we ended up in an awful mess financially and owed about £21K – unsecured – but during last year finished paying them all at 'face value' with no F and F involved. (Felt good!)[/FONT]


[FONT=Arial, sans-serif]I think the 'no' is linked simply to the figures above being 'maxed' – right or wrong or ???[/FONT]
[FONT=Arial, sans-serif]Thanks [/FONT]

bigadaj

jBorrowing, excluding student loans, is not excessive I make it around 20%. Main problems are a consolidation loan might get that pushing 50% if he runs up the other credit again and he's using most of the available credit to him, he needs to start paying down debt. Minimum payments on cards and similar leave markers on his account so paying slightly more will remove these, apart from that it is about cutting back and saving, living in your overdraft always looks bad.

Tixy

When you say 'we' ended up in a financial mess - if this is you and your spouse then the only way this would affect son's ability to get credit would be if he was financially connected to one of you - and that showed on his credit file under financial associations.
A financial association is created b ya joint mortgage/loan/bank account.

Its more likely that its an issue with affordability. A credit search him basedon the data you have provided would indicate he is struggling financially - they are likely to think he cannot afford to make repayments on a loan.