Shall I bother to try to appeal to HSBC's better nature to get my loan increased?

Xandros

My credit score's gone through the floor. I have a loan that I've paid off nearly half of with HSBC, never once missed a payment in the few years I've had it. But thanks to the !!!! hitting the fan after I got the loan I ended up loading up my credit cards which I didn't want to do but pretty much had to in order to survive.

Now I'm struggling. It'd be sooooo much easier to have all my debt in one place, but of course with my credit nearly maxed out my credit score's gone thru the floor, and any attempt to get an unsecured loan has failed. I just wonder if maybe I appealed to HSBC's better nature (if they even have one) and show them that, if they give me the money to get rid of the credit cards and the existing loan, so that all my debt is with them only (so I'm only paying them interest), maybe they'd consider it?

Or would this be like trying to get a brick wall to understand the finer points of my forehead's furrows?

sistafromanothermista

The short answer to ' should i bother.....' is no.
The long answer is they will have no guarantee that this is what you would be using the ££ for. Your debt to income ratio will be taken into account (how much you borrow V how much you earn) and also what your current credit file looks like.....

Xandros

Aye I figured as much. I know for a fact in future if I ever need a loan, I'm going to borrow a massively larger amount than I actually need and keep the excess sat in a savings account, or put it into bonds or something, instead of borrowing what I need and running the risk of needing to use credit cards to keep life going. I couldn't have foreseen the bad times that were just around the corner when I borrowed the money for that loan, but if I had I would have borrowed 15,000 to begin with over a 10 year period instead, and today my credit cards would be empty and I'd likely have plenty of disposable income.

Life's a !!!!!.

DCFC79

If you did get the money to pay off the loan whats to stop you from spending on the cards again ?

Xandros

Maybe the fact I'd close all the accounts.

You-kip wrote: »

Please stop going on about your credit score as only lenders have access to this when accessing your application.

The scores CRAs sell you are in no way a true reflection of your actual score so ignore.

I think the fact all my applications for credit or new loans have all been rejected due to "bad credit rating" is a good indicator I'm actually right to believe my credit score is pretty abysmal.

Case in point: HSBC won't even give me a £50 overdraft facility.

Edit: To everyone below saying the suggestion I put forward to borrow more but keep it aside being a terrible idea etc. and how I'm an example of why this system is best the way it is.

Over a year later and I know now if I'd borrowed twice as much as I originally did, right now, I wouldn't have any problems. I'd have a loan to pay off but I'd still be paying it off and my life would be nice.

I know now for sure also what I said would have worked. If they'd let me consolidate my debts into one large loan right now, I'd still be living happily in my old house, without any worries. Instead I spent the last year in hell.

So consider that not everyone's circumstances are the same before you go chastising them for such suggestions about debt. In my case at least it would have been the only way to save myself from financial meltdown. Still all you rich !!!!ers with your wonderful jobs and disposable income evidently can't fathom a world in which debt actually helps some people.

R_P_W

Xandros wrote: »

Aye I figured as much. I know for a fact in future if I ever need a loan, I'm going to borrow a massively larger amount than I actually need and keep the excess sat in a savings account, or put it into bonds or something, instead of borrowing what I need and running the risk of needing to use credit cards to keep life going. I couldn't have foreseen the bad times that were just around the corner when I borrowed the money for that loan, but if I had I would have borrowed 15,000 to begin with over a 10 year period instead, and today my credit cards would be empty and I'd likely have plenty of disposable income.

Life's a !!!!!.

Stupidest idea I have seen on this forum yet! Sorry if that seems harsh - but come on....read back to yourself what you have written

redpete

Xandros wrote: »

Maybe the fact I'd close all the accounts.

But you won't be able to close the card accounts whilst you still owe them money, and you won't be able to pay them off until you get another loan, so the lender will see the CC limits as available spending when they consider your financial health.

dalesrider

Xandros wrote: »

I'm going to borrow a massively larger amount than I actually need and keep the excess sat in a savings account, or put it into bonds or something, instead of borrowing what I need and running the risk of needing to use credit cards to keep life going.

Life's a !!!!!.

Just take a step back and read that again......

So you pay a high rate of interest on a loan, and then get a small back on the excess..... Just so you can live.

Perhaps a better option would be to live to your means.

Apples2

And this, people, is why we need credit files and other people deciding if we can borrow money.

happycamel_2

I'm astounded by the fact you think debt and disposable income are the same thing. The only people who think that are politicians, particularly the Labour variety, and that's because they are never in government when the taxes have to go up to pay for it.

Debt borrows wealth from the future. Where's your future wealth coming from to pay the capital and interest?

pheonixrising21

redpete wrote: »

But you won't be able to close the card accounts whilst you still owe them money, and you won't be able to pay them off until you get another loan, so the lender will see the CC limits as available spending when they consider your financial health.

However, if these type of loans worked like motor finance, then things may be different...