Denied Consolidation Loan

vikki2k1

Hi
I have just had a letter saying that i cant have the loan i have applied for because my credit rating is too low,
the reason its low is because i am struggling with repayments but if i got a loan to pay everything off i could easily manage the repayments as they would be waaaaaaaaaaaaaaay less than the total i am paying now.
can i call them and ask them to review it and tell them this? and would they be likely to change their mind?
thanks guys

tom188

depends how bad your record is.

i suggest you visit dfw board if you have not already and post your soa.

D&DD

Hi Vikki you should come over to the debtfree board where you'll get lots of help.Consolidation is not always the best option but don't despair there are other things you can do if you are struggling with repayments

N79

Unfortunately, the loan company have no way of forcing you to use the new loan to consolidate the old loans. Although you have no intention of doing this, they are concerned that you might just spend the new loan, ending up in a worse position. I agree with the previous advice, get over to the debt free board as there are other options open to you such as freezing your accounts and trying to negotiate lower payments. People on the board can advise you what to do first.

N79

nomoneytoday

Don't borrow money to pay off money, unless its at a lower interest rate and not over a longer period.

Consolidation is usually the worst thing to do in these cases as it doesn't fix the underlying issues..

Hermione54

It may not seem so now Vikki2k1, but actually the loan company has done you one hell of a favour. Borrowing to pay off debt for most of us has been the start of a downward spiral. See all the posts here about consolidation.

Jinos

Hi,
If you're sure that a consolidation loan is right for you then you could try Alliance and Leicester. I applied online and on the 'Outgoings' page they ask what your monthly payment is for other loans or credit cards, however it also says not to include any payments for loans/credit cards that would be covered by the new loan... thus your outgoings then reflect what they really will be... does that make sense?!

I got a loan from them after being turned down flat by other companies, due in at least one case to 'your high outgoings'. I must say that I didn't get the typical APR advertised (6.9% I think), mine was 10.9% but this was in fact a lot lower than the rate I was paying on 2 credit cards...

Hope this helps!
J