Lloyds tsb risk band

Jasonlucas93

ye i know it's ridiculous i only took out 3000 yet paying 5700 over 3 years (n)

DevCoder

The lender cant take it for granted that you will repay your existing debts.

Even without them, they wont lend 95% of your annual salary.

DevCoder

When you say "ability to pay" do you mean "arrangement to pay" ?

Havent heard of an "ability to pay" marker.

Jasonlucas93

well i phone bank up to ask about it and it was 'ability to pay' basically they told me its because when there system gets updated I end up only having around £40 in my bank account because its right before i get paid -.- so they've advised me to make sure i start showing them that i have the ability to have more money in my bank.

DevCoder

Ahh ok, that makes sense, thanks!

Learn new stuff everyday and Ive been in the sector for 20 odd years.

Jasonlucas93

haa that's no problem!! I guess I will just have to learn to save money and make sure i have £100-£200 in my bank account on the 20th of each month to prove that I can be good with money, will be hard, but I'm going to have to do it!

opinions4u

You are spending more than you earn.

Earn > Borrow Lots > Repay a bit > Borrow some more > Repeating cycle of increasing debt.

Think about it.

Jasonlucas93

hmm i guess but would you not agree that if i can get offered a loan with my bank at 6.4% apr and pay off existing debt which the amigo loan is at 49.9% apr, then maybe that would be better?

YorkshireBoy

Jasonlucas93 wrote: »

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

...my credit score is bad (due to me being an idiot in the last year)

There seems to be a conflict here? In what way have you been "an idiot"?


Re using the overdraft to clear the loan...yes it would be cheaper (a lot cheaper!) but there are a couple of major pitfalls:


1. Overdrafts are repayable on demand (unlike a loan which has a defined payment plan). If they ask for it back and you can't repay it within, say, 30 days, then your credit file will be trashed.


2. There's generally no servicing requirement for an overdraft (other than paying your salary into the account), so you're not forced to reduce it like you are with a loan. For this reason you need a lot of willpower!

Jasonlucas93

well early last year i ran into money problems so i decided to use wonga, and it just kept repeating itself for a few months, i ended up racking up £1100 in debt with 4 different payday loan companies, which had an impact on my score drastically even though still never missed a payment :S