Loan Help

19lottie82

Ambejinn wrote: »

The CC I have has interest free payments for around 2 years, I get a yearly bonus of between 10-12% bonus of my salary which will go on them cards. (The 4k Im using was what I already put aside for paying them in the future, may as well get interest on what I've saved than paying off something that has interest free period)

I'm also due 2 pay rises in the next 6 months which will take me over 20k and my out goings for other things is minimal hence me saying I can comfortably afford the repayments on the loan!

That's all fair and well, but that won't make one iota of difference to the bank. All they will see if that you're on a 16k salary yet have 5k sitting on credit cards, so can't live comfortably on your salary without getting into debt equal to almost 1/3 of your annual wage. Hence why you've been rejected for the loan.

If you're due 2 pay rises in such a short period of time, why not buy a cheap run around for £1k or less then sell it when you're earning £20k +, you should have a lot better chance of getting the loan then, especially if you've paid your cards off by then.

Again, if you can't / won't wait, I'd be looking at finance at your only realistic option here.

Ambejinn

I don't really want the hassle of buying and selling a car in 6 months, I'd rather just get the one I want now and not worry about it for another 6 years!

My original query was with regards to credit score saying no settled accounts was a negative thing and what I can do to fix that. If its related to loans/finance how can I get them to help it :S

I understand about the level of debt/possible debt being high but the way my debts are structured I thought it would go for me that my accounts are well managed!

Gaz83

Ambejinn wrote: »

I don't really want the hassle of buying and selling a car in 6 months, I'd rather just get the one I want now and not worry about it for another 6 years!

My original query was with regards to credit score saying no settled accounts was a negative thing and what I can do to fix that. If its related to loans/finance how can I get them to help it :S

I understand about the level of debt/possible debt being high but the way my debts are structured I thought it would go for me that my accounts are well managed!

Why on earth would a bank / building society think that having debt of £5k (with a further £6k of available credit) on a salary of £16k shows "well managed" accounts?

Foxy-Stoat_3

Ambejinn wrote: »

My original query was with regards to credit score saying no settled accounts was a negative thing and what I can do to fix that. If its related to loans/finance how can I get them to help it :S

Use the £4,000 in savings to clear all but £1000 of your current debt then get finance for the car in one go.

Oh and reduce your limits down to £2000 total and close un-used credit cards.

Cash_Flow

Ambejinn wrote: »

I don't really want the hassle of buying and selling a car in 6 months, I'd rather just get the one I want now and not worry about it for another 6 years!

My original query was with regards to credit score saying no settled accounts was a negative thing and what I can do to fix that. If its related to loans/finance how can I get them to help it :S

I understand about the level of debt/possible debt being high but the way my debts are structured I thought it would go for me that my accounts are well managed!

With a £4k deposit on a £8000 car you won't have any problem obtaining finance.

Happy new year.

Cycrow

buying a more expensive car doesn't guarantee it will have less problems.

hoping a car will be worry free for 6 years is abit optimistic

Cash_Flow

Foxy-Stoat wrote: »

Use the £4,000 in savings to clear all but £1000 of your current debt then get finance for the car in one go.

Oh and reduce your limits down to £2000 total and close un-used credit cards.

Why does the op need to reduce his/her limits from £11,000 to £2000?

Foxy-Stoat_3

Cash_Flow wrote: »

Why does the op need to reduce her limits from £11,000 to £2000?

So they won't be tempted to rack up another load of unsecured debt once its all cleared off.

Tixy

Ambejinn wrote: »

My original query was with regards to credit score saying no settled accounts was a negative thing and what I can do to fix that. If its related to loans/finance how can I get them to help it :S

To answer your original query - potential lenders are likely to place very little interest on this point, its very unlikely to be a major risk factor for them.
These supposed negative and positive factors from the credit reference agencies are best taken with a large pinch of salt.

Cash_Flow

Foxy-Stoat wrote: »

So they won't be tempted to rack up another load of unsecured debt once its all cleared off.

If they wanted to spend again it only takes a click of a button to increase limits.