My bank scaring me into not shopping around?

Redford

CLAPTON wrote: »

what are your current debts
and what are their APRs?

how much do you earn?

Current debts are £5,500 (loan) and £5,000 (arranged bank overdraft). I want to clear these and borrow an additional £2,000 to replace my car. Current loan is 13.5%. My bank charges £3 a day for the overdraft which I think works out at 21.9%

Redford

CLAPTON wrote: »

how much do you earn?

Gross annual is £41,184

CLAPTON

Redford wrote: »

Current debts are £5,500 (loan) and £5,000 (arranged bank overdraft). I want to clear these and borrow an additional £2,000 to replace my car. Current loan is 13.5%. My bank charges £3 a day for the overdraft which I think works out at 21.9%

how much do you earn?

Redford

CLAPTON wrote: »

how much do you earn?

Gross annual is £41,184

John1993_2

Redford wrote: »

I'm looking for a consolidation loan of £12,500, £5,000 of which is to pay off my (arranged) bank overdraft, the rest to settle other loans.

I want to clear these and borrow an additional £2,000 to replace my car

Which of the above statements is the correct one, as they cannot both be?

If you can't quite bring yourself even on here to admit up front what your borrowinng is for, then I think that you maybe need to have a bit of a think about your borrowing. Increasing borrowinng on a "consolidation" loan is a really bad sign.

Redford

John1993 wrote: »

Which of the above statements is the correct one, as they cannot both be?

If you can't quite bring yourself even on here to admit up front what your borrowinng is for, then I think that you maybe need to have a bit of a think about your borrowing. Increasing borrowinng on a "consolidation" loan is a really bad sign.

For the sake of brevity I didn't think it relevant to mention that part of the money was to replace my car, because my question was about the risk to my credit record of applying elsewhere for a loan and being turned down, not about how the loan will be used. So it wasn't about not "bringing myself to admit"! Sorry if I gave the wrong impression.

John1993_2

Redford wrote: »

Sorry if I gave the wrong impression.

It's not a court of law, so you don't have to stand here on oath or anything, I just thought it worth noting that it's worth keeping an eye oon yor overall debt level if it's growing further from am already high level.

Redford

John1993 wrote: »

It's not a court of law, so you don't have to stand here on oath or anything, I just thought it worth noting that it's worth keeping an eye oon yor overall debt level if it's growing further from am already high level.

Thanks you're right I need to also keep tabs on the bigger picture.

CLAPTON

your existing debt is about 10,500 and you are asking for 12,500


most potential lenders will see your debt as potentially £23,000.

you may intend to use the loan to repay the 10,500 but there is no obligation to do so.

the fact that you are permanently in your OD implies to lenders that you aren't managing your spending very well and will have no spare money to repay their loan.

although your income is quite good, all in all you are probably 'lucky' to be offered 22% on the loan; however one never can tell.

there doesn't really seem to be any good reason to replace a loan at 13% by one at 22%

probably better to look at expenditure and look at ways of reducing the overdraft : maybe look at 0% CC to use instead of the OD if such would reduce the £3 per pay fee.

Thrugelmir

Redford wrote: »

now that I have a good rating, doesn't make sense to me!

What good rating? You are heavily in debt and seeking to borrow more than you currently owe. The rate on offer reflects the risk of default and potential loss to the lender.