New Loan + New bank account = HELP!

Pixie5740

lusitana wrote: »

Ok I'm not sure I get it. In all the reading I've done it's "credit rating this, credit rating that" and they say not to make too many applications as it could damage your rating and chances of being accepted.
Am I right to assume that if my credit rating is high is because my credit files are ok?
Give me any issue any day but I am not great at understanding money

Thanks for all your input so far!

As I've already said, there's no such thing as a universal credit rating. Each lender use their own criteria and risk analysis to determine whether or not to lend money to you and at what rate.

Things that indicate you are a bigger risk would be late payments, defaults, lots of available credit, many applications for credit in a short space of time, to name but a few.

lusitana wrote: »

Pixie5740 my debts are due to a combination of factors including that I had to invest in education that has landed me my current job and a higher rate of pay so it is what it is right now. I think I would rather pay 1 loan and see my account in the black every month than seeing it in the red until it has caught up with itself.
Does it make any sense?

It only makes sense if:

A) The consolidation loan has a lower rate of interest over the same term as your current borrowing.

You can budget your money so that you won't have to dip into your overdraft or use your credit cards once you have used the consolidation to pay them off.

Does that make sense?

lusitana

Pixie5740 wrote: »

As I've already said, there's no such thing as a universal credit rating. Each lender use their own criteria and risk analysis to determine whether or not to lend money to you and at what rate.

Things that indicate you are a bigger risk would be late payments, defaults, lots of available credit, many applications for credit in a short space of time, to name but a few.



It only makes sense if:

A) The consolidation loan has a lower rate of interest over the same term as your current borrowing.

You can budget your money so that you won't have to dip into your overdraft or use your credit cards once you have used the consolidation to pay them off.

Does that make sense?

Yes it does and that is exactly why I want to do it. I just want to figure out the best sequence of events to end up with a bank account that doesn't charge me £16 monthly for nothing at all and have just one loan that covers all my existing debt so I can repay it earlier.

Candyapple

Thanks for clarifying.

Seems rather odd that they jumped straight to the £16 per month account rather than the £10 per month account (assuming you have a free current account with them).

If you do switch banks, I think Halifax are offering £125 switching bonus.

You can choose any provider you want to go with for a loan, just make sure that once you do that you do pay off your current loan and card debt and don't end up running more debt on the credit card! You can use the soft search facility on most loan providers to see if you would be eligible.

lusitana

Originally my account was £9.95 per month and gave me a range of benefits I never seemed to use. I only took it because no other bank would give me a normal debit card as I hadn't been working very long. A few years later that charge went up to £14 and then £15. I have only once taken up a benefit as the majority you would only use in a time of need.
Anyway, I think it's time to tell them to stick it and look for a better deal.

Candyapple

I just went onto Live Chat with Natwest (was bored lol) this is what they said:

It is not possible to opt out of the change, also the current fee you pay would remain the same until the end of the year. You can however certainly downgrade your account so it does not have any benefits or monthly fee, or change to an alternative account that offers benefits such as our Select Silver for £10.00 per month,

So the option is there to not pay any fee if you decided not to switch.

lusitana

Thanks Candyapple! You really must be bored heehee
Yeah I know I could downgrade but then again I just had a look at halifax and they seem to have a pretty good account for no fee so it seems Natwest might be losing a customer.
I wonder if everybody moved banks they would stop these silly charges. Since when do you go to your bank for travel advice or AA cover? They can't even compete with Expedia so why make us think they are giving us a goos deal and charging for it when upon further research it's not the case?
Gotta love the internet!

Foxy-Stoat_3

I have a Natwest bank account and doesn't cost me anything, just downgrade and save you switching.

So list out;
All current debts, interest rates, monthly repayments, length of loan(s) and current salary?

We should be able to, A) guess if you are likely to get additional credit based on the limited information, and if it will end up costing you more in interest.