Appealing loan decision

WellGirl

Hi

Ive just applied for a loan from Halifax however I was declined. I have obtained my credit report and its telling me that I would be a suitable candidate for credit. I had a mortgage application accepted by BOS (same company). I was looking for a £7000 for 3 yrs loan in joint names with my husband to pay off a credit card, store card and overdraft and the repayments on the loan works out over £100 cheaper than trying to pay off the 3 seperately. Also being on a reduced wage as im on maternity leave is proving difficult. I suppose my question is this, is it worth appealing the decision ( i applied online) or is a no a no? Also, my credit card is a BOS card and working in the debt recovery industry, Ive heard they dont pay off debt with more debt.

Thanks

sistafromanothermista

WellGirl wrote: »

Hi

Ive just applied for a loan from Halifax however I was declined. I have obtained my credit report and its telling me that I would be a suitable candidate for credit. I had a mortgage application accepted by BOS (same company). I was looking for a £7000 for 3 yrs loan in joint names with my husband to pay off a credit card, store card and overdraft and the repayments on the loan works out over £100 cheaper than trying to pay off the 3 seperately. Also being on a reduced wage as im on maternity leave is proving difficult. I suppose my question is this, is it worth appealing the decision ( i applied online) or is a no a no? Also, my credit card is a BOS card and working in the debt recovery industry, Ive heard they dont pay off debt with more debt.

Thanks

Might this have something to do with it?

happycamel_2

They will see the application as additional debt, there is no guarantee that you will pay off and close down your other credit lines. Therefore this decision is probably due to your income vs debt ratio. To put it simply, they don't think you can afford additional debt.

WellGirl

So why bother asking the question "what do you want the loan for" if theyre just going to see it as additional debt :S

Mara69

Your signature made me smile, WellGirl. Dealing with your debt by getting more.....way to go! :T

worried48

WellGirl wrote: »

So why bother asking the question "what do you want the loan for" if theyre just going to see it as additional debt :S

I've often wondered that.

Horseunderwater

WellGirl wrote: »

Hi

Ive just applied for a loan from Halifax however I was declined. I have obtained my credit report and its telling me that I would be a suitable candidate for credit. I had a mortgage application accepted by BOS (same company). I was looking for a £7000 for 3 yrs loan in joint names with my husband to pay off a credit card, store card and overdraft and the repayments on the loan works out over £100 cheaper than trying to pay off the 3 seperately. Also being on a reduced wage as im on maternity leave is proving difficult. I suppose my question is this, is it worth appealing the decision ( i applied online) or is a no a no? Also, my credit card is a BOS card and working in the debt recovery industry, Ive heard they dont pay off debt with more debt.

Thanks

You would do better to try and get an interest free CCard for 21 months or so if you can and do a balance transfer on the highest interest card. Barclaycard are I think doing 22 months 0% interest, but you must not use to accrue more debt, just to pay off what you owe. Martin calls it stoozing and it does work. Can take a while, but it can be done. Sort out a proper monthly budget with your reduced income as it is now and get going.

WellGirl

Mara69 wrote: »

Your signature made me smile, WellGirl. Dealing with your debt by getting more.....way to go! :T

nice and patronising, what a lovely person you are. to me it makes financial sense as its saving me over £100 pm but hey ho, think what you like

happycamel_2

I think they have to ask in case the applicant is stupid enough to say "crime" or "money laundering", it's not like they can make you spend it on anything in particular so it's probably a mixture of due diligence and "can we sell anything else" eg extra insurance.

WellGirl

Horseunderwater wrote: »

You would do better to try and get an interest free CCard for 21 months or so if you can and do a balance transfer on the highest interest card. Barclaycard are I think doing 22 months 0% interest, but you must not use to accrue more debt, just to pay off what you owe. Martin calls it stoozing and it does work. Can take a while, but it can be done. Sort out a proper monthly budget with your reduced income as it is now and get going.

thanks for your advice, ill be looking into that

bengal-stripe

Mara69 wrote: »

Dealing with your debt by getting more.....way to go! :T

WellGirl wrote: »

.....to me it makes financial sense as its saving me over £100 pm......

WellGirl, whether you like it or not, 'Mara69' has a point. Your 'reduction plan' is to increase your existing debt by more than 10%.

As you haven't got a loan offered, you don't know at which rate it will be. It might not be as low as you hope, so you won't be saving £100 per month. The loan you might eventually get, could be on a much higher interest rate than you had hoped for. Interest rates offered, take your financial position into account.

"When you're in a hole, stop digging!"