Personal Loan frustration

Jonathan_Leeds

Hi all,

I am sure you have heard similar problems before but I just don't know what the best course of action to do is...

I am trying to apply for a personal loan but seem to get rejected every time despite not having a bad credit file.

My Experian credit report score is 869 (Fair), no evident problems on either Experian, Equifax or Noddle (certainly no CCJ's. defaults, missed payments etc).

The only two negative factors on my Experian report are;

( 1 ) 'The value of your highest credit limit indicates a higher risk' - I only have one credit card with a low limit of £500, previously higher but I asked it to be lowered as I wasn't using it. Little did I know it would make me look bad!
[NOTE: This was done as part of a consolidation by my bank 4 months ago which was apparently supposed to be better for me, granted I don't understand it all completely, but I don't know if this is hindering me too..]

( 2 ) 'You have a significant number of recent searches on your credit report' - This is down to me applying in a couple of places recently but being turned down.

I'm not sure whether to look at online options (I didn't pass the pre-assesment on RateSetter but Zopa seems to say I have been "provisionally approved" but I don't know much about it and don't want to go ahead with an application if it will just be another rejection and therefore another credit search to negatively impact me).

Or should I be applying for (whether high interest or not) credit cards and then doing the whole spending a little and paying it off in full trick to make more credit available to me and show I can manage it...(but even then, would I stand any chance of getting accepted for any of these credit cards?)

Thanks for listening - Any more info I can give, please ask.


Jonathan.

Apples2

You mean you consolidated just 4 Months ago and you are looking for further borrowing already?

You either have a perfect credit file, or an awful one, there is scant middle ground.

Your searches will prevent you getting accepted for a little while (you seem desperate for cash).

Leave it 6 months and try your own bank but from what you have said already, you are unlikely to get a decent rate even if you do get accepted.

Jonathan_Leeds

As I said, my Experian credit report score is 869 (Fair). It's not perfect but it is certainly not awful.

My own bank will not consider anything further until at least 12 months from the consolidation, which was done at the suggestion of my bank to manage my repayments better into one lump sum each month, which is ONE loan and ONE credit card with them plus my overdraft, not because I had multiple cards, loans etc all over the place or was spiralling into thousands of pounds of debt or anything like that.

Also I need the money for personal reasons but I am not "desperate for cash" as you put it.

Jonathan.

dealer_wins

This is why consolidations hardly ever work.

In my 20 years at Lloyds bank the number of clients that consolidated and made it to the end of the loan without further borrowing was close to zero!

If you are going to consolidate/have consolidated DONT BORROW MORE MONEY!!! simple.

Jonathan_Leeds

It seems I rather foolishly trusted that my bank was helping me, rather than hindering me with the consolidation.

Is there anything I can do, as with my questions in the original post, rather than "Don't borrow more money" ?

Apples2

Jonathan_Leeds wrote: »

It seems I rather foolishly trusted that my bank was helping me, rather than hindering me with the consolidation.
Is there anything I can do, as with my questions in the original post, rather than "Don't borrow more money" ?

You really aren't grasping this... the bank did help you.

You have done exactly what every poster on here is craving for, that one simple easy to manage repayment.

Your credit file is not perfect so you will not be offered anything like a decent interest rate. If you do get a loan, you will be one of the masses on here repaying stupid amounts every month with aboslutely no end in sight.

The advice stands, do NOT borrow more money, it isn't going to work.

DCFC79

You sure you want to get into debt again after consolidation ?

Stop applying for loans, credit cards etc now as its doing more harm than good. Im sure whatever the personal reason is it can wait for 6 months or os so put it off till 6 months have passed.