Lloyds tsb risk band

Jasonlucas93

Hello all, recently I've went into my bank (lloyds) about getting a loan and they've come back and said my account is very good sitting at risk band 3 (what does this mean) however they've told me that there is one thing that was flashing... 'Ability to pay' and they've told me They're unsure about how long this can take but the system updates every month on the 20th so it updates right before I get paid. But yet they've offered me a 3000£ overdraft, which I've said no too.

Any suggestions on what I can do to fix this and how long it could take as I would love to get my loan at such a low interest so I can pay off my existing loan which is 49.9% apr.

Also pretty stupid question however any good tips on saving money, I'm a typical 20 year old who ends up spending wages quite quickly even though I really want to save a couple hundred quid a month but it seems to be hard!!!

Thank you for any help much appreciated!!!

Regards, Jason!!

DevCoder

http://www.theguardian.com/money/2006/aug/19/accounts.saving1

Jasonlucas93

Ooh that's helpful thanks so I guess I'm classed as a low risk but why am I not entitled to a loan, if you know thanks.

DevCoder

Could be on affordability.

Whats your incomings/outgoings (roughly a month) and what existing debts do you have?

Also any late payments, CCJ's etc?

Jasonlucas93

After tax I earn about 920 a month

Outgoings 161 loan 60 in phone contracts 80 rent and hen 52 a month to littlewoods.

I've never missed a Payments and have no ccjs or anything

Jasonlucas93

Also i was wondering if there's anywhere else i can get a loan for a cheapish interest rate... downside to this is my credit score is bad (due to me being an idiot in the last year) it's sitting at 561 on Experian

Thrugelmir

Existing loan commitment will be taken into account in assessing affordability.

Would the overdraft facility enable you to clear the loan?

Jasonlucas93

Essentially yes, the loan in full payment now would be 2700 but I was more or less looking for around 10k over 5 years so i could spend 2.7k on the loan 1.3k to littlewoods and then have 6k to buy a new car, insure it and hopefully get my laser skin treatment that i was hoping for, well the woman at the bank said they have no say in who gets a loan or not, it's all done by their system

DevCoder

You wont get a 10K loan, you are currently around 35% incoming/outgoing ratio, most lenders wont go above 50% so youd be lucky to get another 3-4K

Jasonlucas93

hmm not even if part of the loan was to pay off existing bills...
cause even though it's not certain lloyds have agreed but not until the 'ability to pay' goes away but that could be months... it would work out so much better because the loan calculator on the website (even though isn't 100% true in some cases) 10k over 5 years i would pay £194 a month

so that would be £920 (my wage) and bills 80+60+194 = 334

920-334 which still leaves me £584 for the month :O

Thrugelmir

£10k loan on your earnings . Highly unlikely.

Personally I would more concerned in not paying a rate of 49% on a loan.