Credit Refused on an excellent credit score

geographygirlie

I've been trying to consolidate my credit card debt for some time now and my bank has been spectacularly unhelpful (comments such as go and ask tesco or sainsbury for a loan because we will not give you a loan) and I've tried to get a new bank because I'm fed up of the poor customer service and total disinterest from my current bank (I've been with them 20 odd years) but been refused based on the new banks credit score.

I have a good, well paid job, I have no debts aside from my credit cards and I've had a credit report done with experion which comes up as excellent so I'm at a loss what to do to clear my debt!

Any advice?!

Thrugelmir

Unsure what you expected your bank to offer. They've looked at your financial situation and decided that they don't want to conduct business. Simple as that.

Post up some more information.

tinkerbell28

Well considering the new bank has refused you. Maybe the issue lies not with the banks but you.

Sounds to me like [STRIKE]rubbish, pointless excellent score[/STRIKE] or not. They've all seen something they don't like.

Debt ratio to affordability would be my first guess.

bengal-stripe

geographygirlie wrote: »

I've been trying to consolidate my credit card debt .......I have no debts aside from my credit cards......

Judging by the fact that you want to consolidate your debt, it is probably fair to presume that you have at the moment difficulties repaying that debt. "Consolidation" means that you want to borrow a second time the amount of money you owe. That might be quite a lot of money to have outstanding.

Yes, you said that you want to consolidate, but nobody will know for certain whether you actually do. Even if you do, you might run up the now empty CC to the previous level. The risk is there, in a year's time you will have twice the level of debt you have today.

The bank(s) might not want to take that risk.

DCFC79

geographygirlie wrote: »

I've been trying to consolidate my credit card debt for some time now and my bank has been spectacularly unhelpful (comments such as go and ask tesco or sainsbury for a loan because we will not give you a loan) and I've tried to get a new bank because I'm fed up of the poor customer service and total disinterest from my current bank (I've been with them 20 odd years) but been refused based on the new banks credit score.

I have a good, well paid job, I have no debts aside from my credit cards and I've had a credit report done with experion which comes up as excellent so I'm at a loss what to do to clear my debt!

Any advice?!

Your score what ever it is is meaningless and it doesnt guarantee you a loan at 5%. You clear your det by looking at your outgoings, cut back and increase your payments to the card providers. The bank were helpful, it could be the blessing in disguise you need.

Maybe the reason for the decline is the amount you have on the cards in conjunction with the amount your wanting to borrow.

Hazzinho

If you are trying to consolidate you need to take into account you may be a risk, when people want to consolidate it generally means they have a lot of debt. Most lenders see debt over 50% of annual salary as high risk so for example:-

£20k salary
£10k debt
£10k loan requested

£10k loan + £10k debt = 100% of your salary = very high risk. Debt consolidation means nothing to lenders as there's nothing to stop you blowing the loan too.

geographygirlie

I think it must be that the lender doesn't think I'm going to use the loan to pay off the cards which I don't really understand when I have a well paid job (in a secure profession), I have no problems paying higher than the minimum payment on my credit cards each month and that has been the case for a while now and all I'm looking to do is pay the debt off quicker and more cheaply.
Sounds like I'm stuck with my credit cards until I pay them off (which will be a while with a 29% apr) - is this really true?

tinkerbell28

geographygirlie wrote: »

I think it must be that the lender doesn't think I'm going to use the loan to pay off the cards which I don't really understand when I have a well paid job (in a secure profession), I have no problems paying higher than the minimum payment on my credit cards each month and that has been the case for a while now and all I'm looking to do is pay the debt off quicker and more cheaply.
Sounds like I'm stuck with my credit cards until I pay them off (which will be a while with a 29% apr) - is this really true?

Well yes. Obviously the debt you have + what you want to borrow = too high risk. They'll underwrite for the whole lot because with consolidation an awful lot will rack up the cards again.

It's also worth remembering no job is secure anymore. So the lack of savings or a buffer won't help your risk profiling. They'll wonder on why a well paid job credit card debt is so high with no contingency.

Your best bet is to chuck everything spare off the cards and cut back.

Nebulous2

Try the Debt Free Wannabe board on here. It would also help if you gave some details - salary, debt, how many cards, who the cards are with etc. 29% is very high in my eyes, but if that is the best you can get then they are obviously trying to tell you that they regard you as a risk.

Check other posts for helpful tips, making sure you are on the electoral roll for instance, and checking your credit file to see if there are any problems there.

eastanglian1

If you are being refused a consolidation loan then it's best to try and throw everything at your highest APR, you will be surprised how quick this debt will come down.

datlex

Why aren't you looking at balance transfers to a lower rate/ zero interest?