Go into Bank Branch to Ask for Loan?

jimbojambo1234

Hi all,

I have applied for a £7,500 personal loan online from a couple of places including the company that I have a bank account with and have been unsuccessful. I would like to use the loan for debt consolidation (I have approximately £5,300 of credit card debt and feel that getting £7,500 would be better as that's when the interest rate goes down and I would have money for a rainy day). I have three credit cards.

I have an average credit rating and am self employed. Would I stand a better chance if I walk into my bank branch and ask to speak to someone about getting a £7,500 personal loan?

If not, does anyone have any other advice/suggestions?

Thanks in advance!

EDIT: Also, as of last month I moved out of my office that I was paying £200 per month for. If I go into the branch I am wondering if being able to tell them this kind of information would make a difference.

I have a Barclaycard credit card with £2,717 and am paying around £50
per month interest on it.

I have a Tesco credit card with £2,191 on it and have about six
months interest free on it.

I have a Santander credit card with about £500 on it and have about
six months interest free on it.

DCFC79

Yes you might do but as its for debt consolidation you might have been rejected because of the cards and whats owing on them, debt to salary ratio will have been looked at.

[Deleted User]

Probably not. Credit scoring is automated and bank staff have very little, if any input.

I'd guess your income isn't sufficient to support a second loan = ie the existing 7.k, plus the 7.5k you want to consolidate the first with, is a lot of debt.

Best to start paying some of it down in the meantime - try the DFW boards for help and support.

Tixy

Is any of the existing debt with your own bank?

If so then it just might be worth speaking to them in branch and stating that part of the loan would be to repay any existing debt you have with them.

It could possibly make a difference if you have been declined due to affordability (as they would automatically force the repayment of their own debt).

If none of the debt is with them then I doubt it would make any difference to the online application.

CKhalvashi

What Tixy said.

They'll want to make sure there's no more risk on them, if it is the case that both are with same provider.

CK

jimbojambo1234

Hi all,

Thanks very much for the responses. Extremely helpful!

I have three credit cards with a total of approximately £5,300 of credit card debt and £500 of that is with my bank (Santander). So, have some with them but not a lot in relative terms. Would it still be worth speaking to them in the branch?

Part of why I want the loan is because I'm paying interest on one of my credit cards (around £50 a month. This is not the credit card I have with my bank though in case it makes a difference) which is hindering my ability to pay the actual debt back. So the loan would be very helpful with this.

Thanks for the replies so far. Any other thoughts or advice that others have would also be much appreciated.

CKhalvashi

jimbojambo1234 wrote: »

Hi all,

Thanks very much for the responses. Extremely helpful!

I have three credit cards with a total of approximately £5300 of credit card debt and £500 of that is with my bank (Santander). So, have some with them but not a lot in relative terms. Would it still be worth speaking to them in the branch?

Part of why I want the loan is because I'm paying interest on one of my credit cards (around £50 a month. This is not the credit card I have with my bank though in case it makes a difference) which is hindering my ability to pay the actual debt back. So the loan would be very helpful with this.

Thanks for the replies so far. Any other thoughts or advice that others have would also be much appreciated.

The question I have to ask, is will the loan repayment come to more than £50 a month?

It makes little sense to swap a revolving credit facility for a fixed one if this will push you into hardship.

Tixy

If you have been declined due to perceived affordability then I doubt going in to the bank is going to make much difference if only £500 of the debt is with your existing bank.

Do you need the extra £1700 you were thinking of borrowing? if not and if it is an affordability issue then you may have more sucess in trying to borrow £5800 rather than £7500 (depending on your income).

If you are only paying interest on one of your cards is it sensible to consolidate the other three in to a loan that would cost you in interest?
Are the other 3 cards on interest only deals and if so how long are they for?

If the main reason relates to the interest on one card then have you tried seeing if you are likely to be accepted for a new 0% balance transfer card? (MSE have an eligibility checker which will give you an indication) and then seeing if you can clear the card debt before that new deal runs out?

jimbojambo1234

Hi there,

Many thanks for your replies!

I have a Barclaycard credit card with £2,717 and am paying around £50
per month interest on it.

I have a Tesco credit card with £2,191 on it and have about six
months interest free on it.

I have a Santander credit card with about £500 on it and have about
six months interest free on it.

I have tried the MSE eligibility checker in the past and it seems as though the most likely card I will get would be another Barclaycard. I do not seem to be eligible for much else.

I was thinking of going for £7,500 as that is when the interest rate
seems to go from around 7/8% down to 4.3%. I was thinking that
the extra cash (on top of what I would use to pay off the credit card debt) would be there in case of cash flow problems.

A problem with trying to get another card to move existing debt to is that I doubt that I would get anywhere near the £2K+ that I have paying interest on although of course if I could move some of it that would help reduce the interest.

Any other advice or opinions would be much appreciated.

Thanks!

CLAPTON

how much do you earn?

Tixy

How much is your income?

How much are you paying towards the debts in total at the moment a month?
Are you just paying minimums or do you pay more than the minimums to any?