I was denied a loan

Derwent

craigyjr wrote: »

no the main raise for the family holiday was to get the loan with the lower intrest rate why loan £6500 too pay off debt at 17.9% when i could ask for £7500 at 5.9% pay off all debt have holiday and loan is cheaper repayments

But the bank doesn't know if you really will pay off your other borrowings with this money. The way they look at it is that you might take this loan and blow it on something else, and then you've got your original debts plus this new one to pay for so need to find double the payments.


I am also very surprised that any bank staff would tell you a specific reason for being turned down, as banks usually will not disclose their reasons for doing so and jealously guard their lending criteria from the general public.

missbiggles1

Benefits are hardly a secure form of income at the moment.

DCFC79

Your going to have to make cutbacks in any spending to save up for a holiday. You may have the best intentions to pay off the debts but thats not how the lenders will see it.

scaredlady

A lot of people who work full time apply for loans to consolidate debts they have built up. They could also say ,if I had just one monthly payment I could easily afford the payment. They could also very easily for the reason given. What you say you are going to do with the money may not be what you actually do with it, so debts of £1000 say, additional loan of £2000 to clear the above, amounts to a debt of £3000. That is how the bank will see it.
Snowball to pay of debts sooner, then when they are clear,save up to pay for a holiday. That is what huge numbers of other people have to do. You are not alone in not having a holiday for years.

elle_may

If you are on esa support group, sainsbury will lend, see their t&c they tell you what they take but you still have to be assesed for how much you ask for and other debts. Carers allowance is not taken fully for income.As others have said, think long and hard before you commit yourself to any more debt as all income even work, is not certain now.

jonesMUFCforever

There is no discrimination here - Lloyds obviously have a business plan which means no lending to customers on certain benefits.
Just as they will not lend to non UK nationals unless they have been here a minimum of 3 years, just as they won't lend to customers who they think will not repay, etc etc.

Gaz83

Taking a loan out to pay off debt with extra for a holiday is a monumentally stupid idea.

dealer_wins

Benefits, high debt, holidays.

Why do I bother working lol

harryfrombarry_2

craigyjr wrote: »

hello i rang my bank up lloyds too ask for a loan and i was denied because i am only on government benefits i receive enhanced rate mobility and care on pip and i get couples rate ESA aswell as my girlfriends carers allowance in my bank. i was wanting too consolidate all my debt and have a family holiday but it feels like i've been discriminated against, the guy on the phone said he could see i had more than enough income too cover the loan but he couldnt give me it cause it was on government benefits

Great, so my tax pays for your holidays.

19lottie82

whats your total annual income? and debts?

take your existing debt, add on what you want to borrow (even if it is to consolidate. if this is more than 50% of your annual income, then that's why they won't lend to you.