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What are the right answers??

becci_b
becci_b Posts: 2 Newbie
My partner is trying to get a loan, he's had one before and has a high credit rating (not 'excellent' but well in the 'good' region) but he got rejected by Sainsburys for a loan. When asked about existing debt we put that he has outstanding on his credit card, the app asked if the loan would be used to pay this off - is it bad if we say yes? We can deal with this debt either way, pay it off in one lump sum with the loan or just continue paying it as usual... He's also in the forces, will this have affected it that much?

Finally if it was the outstanding credit and the fact that he's also not yet on the electoral roll, how long will it take after these things have been rectified before he might be accepted?

Questions questions questions! Thanks in advance.
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Comments

  • bargainbetty
    bargainbetty Posts: 3,455 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    How much is his salary, less his total outstanding debt. If you are asking for more than half of that sum, then you may well be refused. Consolidations are not guaranteed anymore, and some lenders will not care if you plan to pay off your old stuff, they only look at the total debt you would have if you got the loan.

    Once the amount you want to borrow is below the debt threshold, he should get it. The electoral roll will help, but it isn't the be-all and end-all.
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!



    May grocery challenge £45.61/£120
  • Thanks bargainbetty, if I take his o/s balance off of his annual salary it leaves about £1.5-2k, would this be too close to the mark?
  • Tiggy_Wiggy
    Tiggy_Wiggy Posts: 204 Forumite
    Part of the Furniture 100 Posts
    So what you are saying is that his total salary/debts are almost the same?

    If so, I think it's unlikely that you will get access to any further credit from the mainstream sorces.
  • forgotmyname
    forgotmyname Posts: 32,755 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Seems you only get credit at decent rates if you dont actually need to borrow the money in the first place.

    I guess they see borrowing to pay off previous borrowing is a slippery slope.

    Too many people defaulting from these types of loans to risk more.
    Censorship Reigns Supreme in Troll City...

  • Macca83_2
    Macca83_2 Posts: 1,215 Forumite
    The right answers are the truthful answers. Don't be tempted to put anything on the application just because you think its gonna give you a better chance of being accepted. If the loan is for consolidation then put consolidation.
    If your lending to salary is too high, you won't be accepted. And multiple applications in a short period of time doesn't look too good either.
  • RobertoMoir
    RobertoMoir Posts: 3,458 Forumite
    Part of the Furniture Combo Breaker
    Seems you only get credit at decent rates if you dont actually need to borrow the money in the first place.

    If someone's heavily in debt then I'd say that borrowing more money is the last thing they need. You don't cure a heroin addict by doubling their dose.
    I guess they see borrowing to pay off previous borrowing is a slippery slope.

    Too many people defaulting from these types of loans to risk more.

    That's the problem. There's not really any such thing as a "consolidation loan" - If I just borrow, for example, £20,000 from a lender and they have no way of making sure I use that to pay off the £20,000 of debt I have from elsewhere*. If I decide that actually I'm going to buy a nice car and go on holiday instead, I'm now £40k in debt and there's not a lot that any lender can do about it.


    (*Just an example, I'm not really £20k in the hole!)
    If you don't stand for something, you'll fall for anything
  • bargainbetty
    bargainbetty Posts: 3,455 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Seems you only get credit at decent rates if you dont actually need to borrow the money in the first place.

    I guess they see borrowing to pay off previous borrowing is a slippery slope.

    It is. I consolidated all my debts into one manageable payment. Then filled up the cards again and did the whole thing over again. Took me nearly eight years to get my head out of my a**e and realise that I need to address my spending and stop borrowing money to fund a lifestyle that I obviously couldn't afford.

    You only get credit at reasonable rates if you have proved you are a responsible borrower, and have a likelihood of being able to pay it back, which decreases as your debt outstrips your income.

    Do a budget, reduce your expenses, increase your income if you can, and find a way to save the money you need. Sorry, long haul seems the best route.
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!



    May grocery challenge £45.61/£120
  • MacMickster
    MacMickster Posts: 3,641 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It is. I consolidated all my debts into one manageable payment. Then filled up the cards again and did the whole thing over again. Took me nearly eight years to get my head out of my a**e and realise that I need to address my spending and stop borrowing money to fund a lifestyle that I obviously couldn't afford.

    You only get credit at reasonable rates if you have proved you are a responsible borrower, and have a likelihood of being able to pay it back, which decreases as your debt outstrips your income.

    Do a budget, reduce your expenses, increase your income if you can, and find a way to save the money you need. Sorry, long haul seems the best route.

    I wish someone would turn this post into a sticky.

    I'm sorry BB that it took you 8 years to get to this point, but I'm sure that you are now a lot happier without as many "things" which you previously felt that you "must have", but without the associated debt.

    Budget. Reduce expenses. Increase income. Save.

    This should be a mantra for anyone before they even consider looking for a loan.

    Well done!
    "When the people fear the government there is tyranny, when the government fears the people there is liberty." - Thomas Jefferson
  • bargainbetty
    bargainbetty Posts: 3,455 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I wish someone would turn this post into a sticky.
    Might need to rethink the 'get my head out of my a**e' phrase...
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!



    May grocery challenge £45.61/£120
  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
    Not being on the Register of Electors will affect his chances of getting a loan. Also lenders are reluctant to lend to service personnel because they can sometimes be difficult to contact (though the Olympic Village would probably be a good guess for the next fortnight!)
    I used to think that good grammar is important, but now I know that good wine is importanter.
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