Help please... on an Experian credit report

The_Boss

BartyBoy wrote: »

My aim for a 10K loan is to pay off my 2 credit cards, one of them has already been suspended and I need to settle the balance before the 0% APR ends next month...

While the credit report is not relevant to my loan application, shall I try one more time to apply for a loan with a different lender now?

Not just yet. What are the credit limits on your credit cards along with the balances?

BartyBoy

The_Boss wrote: »

Not just yet. What are the credit limits on your credit cards along with the balances?

Card 1, 5700 limit, 5500 balance
Card 2, 3700 limit, 1850 balance

Forgot to mention 2000 overdraft too

The_Boss

BartyBoy wrote: »

Card 1, 5700 limit, 5500 balance
Card 2, 3700 limit, 1850 balance

Forgot to mention 2000 overdraft too

Definitely do not apply for another loan then.

The fact you are using most of your credit limit on one card, half on another, have an overdraft and want a loan enough to apply three times will just be seen as a sign of someone who is at risk of default (even though your purpose is to pay the cards, you could still in theory spend it on other stuff).

Might be worth applying for a credit card that allows you to do a 0% money transfer to your bank account, but would wait at least a month before doing that.

BartyBoy

The_Boss wrote: »

Definitely do not apply for another loan then... Might be worth applying for a credit card that allows you to do a 0% money transfer to your bank account, but would wait at least a month before doing that.

Thank you for the advice again.

I did try to apply for a 0% balance transfer credit card before I started applying for a loan, even I have already had a Lloyds TSB account for almost 9 years. Lloyds TSB still rejected my application.

Going back to your comment about after paying off the credit cards, I can still be able to spend the money. As I explained, one of the two credit cards has already been suspended, so as soon as the balance is settled, the card account will be terminated completely.

With the remaining credit card, I am happy to close it too, but I have read some posts here saying a high credit limit card could help the credit status or something. This is the only active credit card I have got now after all.

I can certainly wait for a month or so to try to apply for a credit card/loan again, but what should I do if my application is still declined by the lenders?

The_Boss

BartyBoy wrote: »

Thank you for the advice again.

I did try to apply for a 0% balance transfer credit card before I started applying for a loan, even I have already had a Lloyds TSB account for almost 9 years. Lloyds TSB still rejected my application.

Going back to your comment about after paying off the credit cards, I can still be able to spend the money. As I explained, one of the two credit cards has already been suspended, so as soon as the balance is settled, the card account will be terminated completely.

With the remaining credit card, I am happy to close it too, but I have read some posts here saying a high credit limit card could help the credit status or something. This is the only active credit card I have got now after all.

I can certainly wait for a month or so to try to apply for a credit card/loan again, but what should I do if my application is still declined by the lenders?

Your last comment is why you need to wait a bit. Then I'd see about getting an MBNA card if they still do the money transfer offer. But do NOT close the account after repaying it.

How many credit searches are recorded on the Experian report in the last 3, 6 and 12 months?

BartyBoy

The_Boss wrote: »

How many credit searches are recorded on the Experian report in the last 3, 6 and 12 months?

It shows on my latest credit report that 14 previous searches were made.

3 from the lenders/banks last 3 weeks;
7 from different insurance companies/brokers (which I am not happy about);
4 from me and Experian for setting up the credit report, etc.

bargainbetty

BartyBoy wrote: »

Card 1, 5700 limit, 5500 balance
Card 2, 3700 limit, 1850 balance

Forgot to mention 2000 overdraft too

You earn £32k.

You currently owe £9350. You are asking for another £10k. Although you intend to use it for paying off the other debts, you cannot be forced to do that, so essentially, you are asking your bank to up your unsecured debt to nearly two thirds of your annual salary.

While some people have been successful at obtaining loans for this aim, many lenders are refusing to lend someone more than 50% of their annual income (less existing debt). That might be the most likely explanation for why you are being refused.

Give it a few months before you apply for anything else, or you will look quite desperate.

Good luck

jacobtheamish

The insurance company searches are common especially if you have used a comparison site. I've been told they have no affect on your file though.

The_Boss

jacobtheamish wrote: »

The insurance company searches are common especially if you have used a comparison site. I've been told they have no affect on your file though.

Also mentioned above definitively

BartyBoy

bargainbetty wrote: »

...you intend to use it for paying off the other debts, you cannot be forced to do that, so essentially, you are asking your bank to up your unsecured debt to nearly two thirds of your annual salary...

Thank you for your comment too.

Card 2 with 3700 limit will be closed once the balance is zero, again I am happy to close card 1 once it is settled. If I tell a lender this is what will happen, will I have a higher chance to obtain a loan?

I know it is a personal thinking, but at the end of the day I just want to settle these cards and overdraft.