Nationwide 'account performance'

essex.cyclist

Hi

I am considering applying for a loan through Nationwide.

I hold my current account with them and have done for my whole life. I have gone into my overdraft but don't spend all of the time in my overdraft. I am not currently in my overdraft, but I do have £11.5k on credit cards.

I just wondered if anyone could tell me what criteria might be relevant to their statement online that you can be rejected if your 'account performance' falls below their expected standard.

Can anyone help me understand whether that might be the case for me, please?

Thanks

[Deleted User]

They will largely be talking about missed payments, over limits etc.

However, they may also use overdraft usage, as well as the credit card debt, as a way to measure affordability.

essex.cyclist

Thanks.


I haven't missed any payments or been near my overdraft limit for a few years, so hopefully that wouldn't be an issue.


Not desperate for the loan but it would help me, certainly.


So perhaps the only way to know is to try!

enthusiasticsaver

Just a word of warning. If the loan is to consolidate credit card borrowing don't do it. It never works and you will be back again in a few years time with a loan and still high credit card balances so overall indebtedness even higher.

Speak to the many hundreds of people on this forum who have done this and regretted it.

essex.cyclist

Thanks.


Is that the view the lenders take?

enthusiasticsaver

essex.cyclist wrote: »

Thanks.


Is that the view the lenders take?

Yes because they have no proof you will use the loan to pay off existing borrowing hence they have to judge the affordability of you having your existing credit cards which will show up on a credit report plus however much you apply for as a loan. No easy way to get rid of debt sadly but knocking overspending on the head and paying it off gradually.

john1002

I would apply and get to the soft check part that tells you APR and monthly amount depending on the APR should give you a good idea if you will be approved.

Any APR above 19.9% is a likely decline.

Although not foolproof it is a good guide.

John

essex.cyclist

Thanks.


APR on offer is 3.3%.


I actually intend to use the money to pay off money that I owe to my parents.


It basically means I can pay them back now and gradually pay off the debt over time, which is easy for me to do as I receive a quarterly bonus where £1-2k of it is additional to my living costs.


I'm generally quite good at reducing my debt down to zero but am where I am because of home improvement costs - the project is now finished.


Am concerned I'll be turned away for a loan because I've been in my overdraft and because of my credit card debt, which is around 65-70% at present.


Thanks for your advice.

essex.cyclist

Particularly interested to know whether I should apply on the basis of paying for home improvement or consolidating debts?


Thanks!

john1002

At that rate I would apply till the end, put down reason as the reason you want the funds, you can sign online and have money within 48hrs.

Good luck

John

essex.cyclist

Thanks John - sorry, what reason would you put down?