Halifax loan declined...any thoughts?

Lilith1980

Hi all,

I 'unwittingly' applied for a Halifax loan, when I thought I was just getting a quote. Sounds daft I know but I hadn't hit the 'apply' button but when I rang them to talk further about it, they checked my account (I have online banking with them) and said that I had applied

Anyway, I was declined and they advised me to check out my credit record and score.

I have done so this evening with Equifax and my score has come up as 'excellent'. The only 'amber' is my electoral roll record, which might be because I have only been in my current house for 14 months.

I had a credit card with £4k limit on it that I wasn't using so I have now closed that this evening. My current debts are £2,200 on one card and £5,500 on another card.

I want a loan of £6,900 to help with university fees this September.
My current salary is £18,180 and I have only been with my present employer for 7 months so would either of these have a bearing? I wasn't sure if there was a certain loan-to-income-ratio?

Thanks in advance for your help

[Deleted User]

It's very likely to be your existing debt. You're around the 50% limit already which is often considered to be a good rule of thumb of a maximum amount of borrowing, so further credit is going to be hampered.

Lilith1980

Thanks for your reply. I think I will try and make a dent in some of this debt and then try and apply again nearer to September.

Thrugelmir

No one is going to lend you over £14k on an £18k salary.

You've not much time to bring your debt levels down.

PeacefulWaters

Too much debt. Unusual loan purpose. Time in employment short.

Good enough reasons to decline.

chambta

Thrugelmir wrote: »

No one is going to lend you over £14k on an £18k salary.

You've not much time to bring your debt levels down.

It's perfectly possible to get that sort of that sort of figure.

Pixie5740

Have you looked into getting a career development loan to help fund your studies? You would only start making repayments once the course has finished so it might be a better option for you. I think Barclays and Co-op do them and there might be others.

Thrugelmir

chambta wrote: »

It's perfectly possible to get that sort of that sort of figure.

Good luck in your search.

jonesMUFCforever

If you are going to University how will you pay your existing debt let alone any new borrowing?

Lilith1980

Pixie5740 wrote: »

Have you looked into getting a career development loan to help fund your studies? You would only start making repayments once the course has finished so it might be a better option for you. I think Barclays and Co-op do them and there might be others.

Hi, yes I have tried that but because the course lasts for 4 years I have been told I could only have the loan for the remaining 2 years of the course - the fees are higher in the first two years so that's what I need a loan for.

Lilith1980

jonesMUFCforever wrote: »

If you are going to University how will you pay your existing debt let alone any new borrowing?

My existing debts are all 0% cards which I shuffle when the deals run out. I just pay the minimum at the moment.