How soon after clearing or settling a loan does your credit rating go up? need a new

il638

i need a new loan thats why i ask.

basically i have two graduate loans with my bank hsbc one for 7500.. which i have 3 payments left on, so april that will be complete/settled and a 2nd with same bank for 1500 which i have 4 payments remaining on so clear in may.

with hsbc i also have a credit card at 450 out 500 limit. and £1500 overdrawn pretty much everymonth out of 2k limit

i have a barclaycard with 3k (out of 3.5) on and an mbna card with 2k (out of 5k) on but thats interest free till end of this year so not worrying about the mbna.

i havnt missed any payments or delayed any etc. just seem to have a lot of debt for someone on 18500 yearly wage.

now im thinking of getting a debt consolidation loan 7.5k for 3 yrs. to clear all these debts and then pay it back in easily monthly chunks.

should i apply now for this loan or wait till the two loans are clear and apply the following month?

Your help is much appreciated.

Thanks. Just want to clear this debt and have one thing to repay nice and easy with fixed monthly which works out at £223 if i get the 7.5k graduate loan. i can handle that no problem and cut up the mbna and barclaycard. and keep things simple from then on.

gb12345

il638 wrote: »

i need a new loan thats why i ask.

basically i have two graduate loans with my bank hsbc one for 7500.. which i have 3 payments left on, so april that will be complete/settled and a 2nd with same bank for 1500 which i have 4 payments remaining on so clear in may.

with hsbc i also have a credit card at 450 out 500 limit. and £1500 overdrawn pretty much everymonth out of 2k limit

i have a barclaycard with 3k (out of 3.5) on and an mbna card with 2k (out of 5k) on but thats interest free till end of this year so not worrying about the mbna.

i havnt missed any payments or delayed any etc. just seem to have a lot of debt for someone on 18500 yearly wage.

now im thinking of getting a debt consolidation loan 7.5k for 3 yrs. to clear all these debts and then pay it back in easily monthly chunks.

should i apply now for this loan or wait till the two loans are clear and apply the following month?

Your help is much appreciated.

Thanks. Just want to clear this debt and have one thing to repay nice and easy with fixed monthly which works out at £223 if i get the 7.5k graduate loan. i can handle that no problem and cut up the mbna and barclaycard. and keep things simple from then on.

Most lenders sent reports to the CRAs once a month, so it could be up to a month before your record is updated to reflect that the loans have been paid.

But even if you do wait until the loans disappear, I don't fancy your chances of getting a £7,500 loan with a £18,000 salary - that would give you £15,000 credit - far higher than any sensible lender is going to consider for your salary.

il638

ah ok, its just they gave me a graduate loan so easy last time.didnt think of it like that.just thought if i told them its for debt consolidation. they would see that current debt would be gone. np at least i know it'll be updating every 30 days at least so i'll clear more of these debts off at get it down and maybe consider a loan at the end of the year after barclaycard is clear as the loan repayment money i have been using can go to the barclaycard.

gb12345

il638 wrote: »

just thought if i told them its for debt consolidation. they would see that current debt would be gone.

And that's what loads of others will have told them, only to go and splash their newly found wealth on the latest "must have" and then stop paying due to not being able to afford the new loan and their existing finance, or clear the loan and then rack up the cards again.

You may have every intention of clearing your existing debts, but the loan underwriters will work on the worst case scenario.

il638

cheers for the advice mate. i was just thinking too simply. no problem. i dont wanna do unnecessary searches on my credit history, i'll just have to fight harder to clear them then.

Clive_Woody

I would leave it for now, the loans will be paid off in 4 months, then it would be the Barclaycard and the overdraft to focus on paying off as they are charging interest.

You could consider trying to get another 0% credit card to transfer the barclaycard to then focus on clearing your overdraft and not going into it again.

I would avoid another loan if I were you and really try and blitz your debt in order of highest interest first.

il638

thanks, thats the plan, i did try 4 month ago for 0% card for that but it got declined. netherless barclaycard and overdraft r priority altho overdraft is minimal as ive still got part interest free.

PeterJenkins

I don't think that taking a debt consolidation loan will solve your problem. You should concentrate on repaying your current loans for now because if you take a debt consolidation loan your previous loans will be cleared but your interest to be paid monthly will be so high that after long term repayment it will finish just a little bit of the borrowed money. Plus it will also degrade your credit score very badly and in future if you take a loan the interest rate will be very high.