Loan Application - Following rejections 6 months previous

cd1992

Hi everyone,

6 months ago I moved home and applied for a personal loan which was declined and without really thinking about it applied for a couple more which were also declined. I was surprised as I had always been upto date with all my payments and no missed payments in over 6 years. Looking back multiple applications was stupid and obviously has an impact on my credit score but there is nothing I can do about that now :-(

Turned out I hadn't been added to the electoral roll at my new address with the credit reference agencies which is what I am putting down my rejection to, having checked it is now correct with all 3 credit reference agencies.

Cut a long story short having checked all my credit reports:-

- There are no missed payments in 6 years,
- On the electoral role,
- No CCJ's,
- No credit searches in the last 6 months (although 3 from month 7),

Experian rate my credit score as 975 out of 999 which I know is just their opinion and no guarantee of credit however it gives me an impression is fairly decent.

Price comparison websites websites however only give me a 50% chance of getting a loan for debt consolidation. There wont be any additional lending just rolling a credit card and HP agreement into a single loan, over a slightly longer period on a better interest rate.

My question is really this, I want to apply for a loan, however dont want to apply and get declined again with another search on my credit file. What is the best\safest way to do this?

Thanks for any assistance in advance.

Pixie5740

It might not be your credit files that are the problem here. Your 50% chance might come down to affordability. Do you really have to consolidate? Could you not just snowball the debts you've got instead? The Debt Free Wannabe board has lots of help and advice on how to do just that.

DCFC79

cd1992 wrote: »

Hi everyone,

6 months ago I moved home and applied for a personal loan which was declined and without really thinking about it applied for a couple more which were also declined. I was surprised as I had always been upto date with all my payments and no missed payments in over 6 years. Looking back multiple applications was stupid and obviously has an impact on my credit score but there is nothing I can do about that now :-(

Turned out I hadn't been added to the electoral roll at my new address with the credit reference agencies which is what I am putting down my rejection to, having checked it is now correct with all 3 credit reference agencies.

Cut a long story short having checked all my credit reports:-

- There are no missed payments in 6 years,
- On the electoral role,
- No CCJ's,
- No credit searches in the last 6 months (although 3 from month 7),

Experian rate my credit score as 975 out of 999 which I know is just their opinion and no guarantee of credit however it gives me an impression is fairly decent.

Price comparison websites websites however only give me a 50% chance of getting a loan for debt consolidation. There wont be any additional lending just rolling a credit card and HP agreement into a single loan, over a slightly longer period on a better interest rate.

My question is really this, I want to apply for a loan, however dont want to apply and get declined again with another search on my credit file. What is the best\safest way to do this?

Thanks for any assistance in advance.

Your score of 975 is neither here nor there, lenders don't see it.

Debt consolidation rarely works, you need the will power to not spend the loan and use it to pay of current debts.

Whether you can get another loan and at a rate your happy with depends on many factors eg salary, current debts, lenders will have own criteria they score you on.

Caz3121

cd1992 wrote: »

There wont be any additional lending just rolling a credit card and HP agreement into a single loan, over a slightly longer period on a better interest rate.

from the lenders point of view, there is no guarantee that you will use the loan to pay these off, so they will assess the affordability based on current debt amount plus the loan
eg current £10k, looking to borrow £10k...can you afford £20k of debt, rule of thumb debt=50% salary max so for these sample numbers you would need £40k+ income

cd1992

Thanks for the feedback. I hadn't thought about it like that in relation to not paying off existing debts and I see that as a risk for the lender now.

My Salary is 45k and that loan I was looking for was £20k. I was looking at it from the point of view I wouldn't have any more debt than I currently do therefore didn't see it as an issue as such but can see it from the lenders side now that if I didn't keep to my word I could end up owing £40k.

Ideally I would still like to consolidate the items as it would mean lower monthly payments and would know at the end of the term it was all cleared and gone. However I appreciate that may well not be possible.

DCFC79

cd1992 wrote: »

Thanks for the feedback. I hadn't thought about it like that in relation to not paying off existing debts and I see that as a risk for the lender now.

My Salary is 45k and that loan I was looking for was £20k. I was looking at it from the point of view I wouldn't have any more debt than I currently do therefore didn't see it as an issue as such but can see it from the lenders side now that if I didn't keep to my word I could end up owing £40k.

Ideally I would still like to consolidate the items as it would mean lower monthly payments and would know at the end of the term it was all cleared and gone. However I appreciate that may well not be possible.

Look at where your money is going, cut back on stuff.

-taff

Go to the debt free wannabe board and search for snowballing, also ask for advice there.
Consolidation very very rarely works, you need to look at why you're overspending and develop strategies for living within your means.