Problem lending £8000

kiedistidus

Hi all

First time poster long time lender

Having problems being accepted for an 8k loan and I cant understand why.......firstly I am 26 years old and obtained my first loan of 3k at age 20 with MBNA through Virgin loans with a very respectable interest rate (unfortunately tarnished by my naivety to take PPI) I paid off the loan within 18 months with the total sitting at around £4300. Then at age 22 I managed to get a 5k loan from Tesco finance over a 4 year period for a car, I am now 1 month away from total repayment and I'm looking for an 8k loan to consolidate my 3 credit cards and get a nice holiday to Tokyo sorted for this November which I thought would be simple enough, I rang tesco finance a few months back and discussed the possibility of topping up my loan or applying for a new loan when my current loan had come to an end, the nice lady assured me with the details she had at hand this wouldn't be an issue, so yesterday I called tesco again to arrange a top up after 15 minutes of confirming details and repeating what I told them 4 years ago I was told I had failed the application due to a profile of high lending!:mad: A little shocked I proceeded to search for loans through money supermarket and have failed a further 2 applications with Clysedale bank and Hitachi finance respectively. So before applying for any further loans and potentially flagging myself as a dodgy customer I thought I'd seek some advice from the good people of this forum.

Can anyone recommend a lender that wont charge me ridiculous rates or insist I seek a guarantor?

My current financial status isn't fantastic but it is by no means desperate, I am back living with my parents (this is not due to any financial issues) but currently searching for a place with my girlfriend I have around 6k of credit card debt spread across 3 cards which I plan to pay off with this loan besides that the only other form of lending I'm currently involved in is for a laptop that will be paid off by march next year and my final loan payment to tesco is due next month. I have never missed any loan repayments and have always managed to pay off any items I have financed on the agreed upon dates in full.I have been in full time employment since the age of 18 and have been at my current job for nearly 6 years where I make around 20k a year plus overtime which can bump it up to around 24k! The 3 credit cards I do own are pretty much maxed out but I know people with 15k+ of credit card debt who have always resided with their paents and they don't seem to have half the trouble I do when applying for a loan.........Someone please help!

CLAPTON

so you have 6k of CC debts plus ??? of laptop debt plus ?? of

and you want 8k more

a lender will see this as 14k plus a bit on a salary of only 20k

they will probably see this as too much.

you have a shocking history of debt; maybe you should seriously think about reducing debt to zero and start saving for those thing you want

Cycrow

you say you have 6k debt, but how much total credit do you actually have ?
ie, do you have more than just your credit cards, like overdrafts, etc?

it seems like the problem is your overall credit, with at least 6k of credit, another 8k would put you to 14k credit at least.
So ideally u will need a salary of about 30k

R_P_W

You need to break this cycle of debt!

kiedistidus

oh yeah I have an overdraft of £500 and my total credit for the cards is 7k but I owe the 6k the point of this loan is to consolidate the cards and have a single monthly payment which after a bit of math should reduce my outgoings by around £200 loans work better for me as its a fixed payment over a fixed period and I dont have to chop and change my payment scheme like credit cards..........The point of this loan is to break the cycle as the interest of my credit cards is substantially more than a single monthly repayment of a loan based upon previous loan rates I have received.

CLAPTON

a loan company won't know you plan to pay off 6k of CC and even if you told them there is no certainty that we will actually do so

combined with living in an OD (shows very poor money management and/or living above you means) plus maxing your CCs and on a lowish salary makes you a bad risk


it's unlikely that anyone will give you such a loan although nothing is impossible

best to cancel the Tokyo trip and concentrate on reducing debt

maybe consider 0% BT CC will help reduce interest

living at home on 20k should mean you could pay a lot back quickly if you had the mind to

DCFC79

kiedistidus wrote: »

Hi all

First time poster long time lender

Having problems being accepted for an 8k loan and I cant understand why.......firstly I am 26 years old and obtained my first loan of 3k at age 20 with MBNA through Virgin loans with a very respectable interest rate (unfortunately tarnished by my naivety to take PPI) I paid off the loan within 18 months with the total sitting at around £4300. Then at age 22 I managed to get a 5k loan from Tesco finance over a 4 year period for a car, I am now 1 month away from total repayment and I'm looking for an 8k loan to consolidate my 3 credit cards and get a nice holiday to Tokyo sorted for this November which I thought would be simple enough, I rang tesco finance a few months back and discussed the possibility of topping up my loan or applying for a new loan when my current loan had come to an end, the nice lady assured me with the details she had at hand this wouldn't be an issue, so yesterday I called tesco again to arrange a top up after 15 minutes of confirming details and repeating what I told them 4 years ago I was told I had failed the application due to a profile of high lending!:mad: A little shocked I proceeded to search for loans through money supermarket and have failed a further 2 applications with Clysedale bank and Hitachi finance respectively. So before applying for any further loans and potentially flagging myself as a dodgy customer I thought I'd seek some advice from the good people of this forum.

Can anyone recommend a lender that wont charge me ridiculous rates or insist I seek a guarantor?

My current financial status isn't fantastic but it is by no means desperate, I am back living with my parents (this is not due to any financial issues) but currently searching for a place with my girlfriend I have around 6k of credit card debt spread across 3 cards which I plan to pay off with this loan besides that the only other form of lending I'm currently involved in is for a laptop that will be paid off by march next year and my final loan payment to tesco is due next month. I have never missed any loan repayments and have always managed to pay off any items I have financed on the agreed upon dates in full.I have been in full time employment since the age of 18 and have been at my current job for nearly 6 years where I make around 20k a year plus overtime which can bump it up to around 24k! The 3 credit cards I do own are pretty much maxed out but I know people with 15k+ of credit card debt who have always resided with their paents and they don't seem to have half the trouble I do when applying for a loan.........Someone please help!

What did you spend the 6k CC debt on ?

kiedistidus wrote: »

oh yeah I have an overdraft of £500 and my total credit for the cards is 7k but I owe the 6k the point of this loan is to consolidate the cards and have a single monthly payment which after a bit of math should reduce my outgoings by around £200 loans work better for me as its a fixed payment over a fixed period and I dont have to chop and change my payment scheme like credit cards..........The point of this loan is to break the cycle as the interest of my credit cards is substantially more than a single monthly repayment of a loan based upon previous loan rates I have received.

Pay a little more than the minimum on the cards with the lowest apr and pay as much as poss on the highest.

Stop spending for a start, lose what you spend on clothes, dont go out as often ( whether is out at night or out for a meal ).

Get a cheaper phone contract, car insurance ( if you have a car ) etc

kiedistidus

CLAPTON wrote: »

living at home on 20k should mean you could pay a lot back quickly if you had the mind to

Living at home is a temporary situation as I have the money saved to move out just looking for a place at the moment. Believe me I prefer to pay things off asap but with a view to move out again I want to consolidate existing debt and funnel my outgoings into 1 cheaper monthly payment also I have the overdraft but I am not into it nor have I been for over a year.

Debt is not something I take lightly! and my payment history proves that I have never defaulted, incurred ccj's ,filed for bankruptcy, used a payday loan service,received phone calls or letters from debt agencies and have always lived within my means. my previous loan was for a new car which I needed for work as previous cheap cars I had owned where unreliable and where costing me more financially in the long run, my very first loan of 3k was used partially for a dream holiday and the rest was to help family out. Unfortunately wether its for a house, a car or a well deserved holiday( I have left the uk 3 times in my entire life) certain people can only afford these things with credit.

kiedistidus

DCFC79 wrote: »

What did you spend the 6k CC debt on ?



Pay a little more than the minimum on the cards with the lowest apr and pay as much as poss on the highest.

Stop spending for a start, lose what you spend on clothes, dont go out as often ( whether is out at night or out for a meal ).

Get a cheaper phone contract, car insurance ( if you have a car ) etc

I rarely go shopping or on nights out as I prefer to keep money at hand for things that I find important seriously I'm not a drinker and have never enjoyed clubbing or the likes I tend to go out for special occasions. I have only recently obtained a contract phone which costs me £10 a month and the laptop(i'm currently using to post this costs £50 a month the credit cards where used during my last tenancy for various things most related to the house which unfortunately went belly up when the friend I was living with went awol.

lippy1923

Well you have your answers above. Too much borrowing on a lowish salary, you are considered higher risk. I wouldn't apply for anything within the next 6 months as you have already had 3 failed applications.

As suggested, use the living at home moment to clear off the cards/ laptop and start saving up for things you want. Show lenders you are not reliable on credit all the time. Cancel the holiday (this is a want, not a need and you cannot afford it) and wait until you save for it.

Edit- Start a spending diary to help you see where money is wasted unnecessarily. A real eye opener.

kiedistidus

Yeah the holiday was a want/need the plan was originally to go to Tokyo but bring back things like electronics and various other items that sell quite well over here so it was sort of going to be the start of a little online business but I suppose I'l just have to wait it out.