Turned down by my bank

skintscotsman

I recently applied for a loan for £21k with my bank (NatWest).

It is to consolidate 6 debts I have.

2 x Bank Loans (both currently with NatWest)
3 x Credit Cards
1 x overdraft (with my NW Current+ account)

Discussing the details of loans, the advisor mentioned that my account 'discipline' was excellent ie I have never defaulted on a single loan payment over the 3+ (almost 4) years I have been paying the loans back.

Also, I have never gone over my overdraft limit.

In principle, the loan was okay in terms of affordability.

However, because I applied to cover the 3 CCs too, they (the underwriters) declined. They said they could not lend me the money becuase my CCs were over their limits.

Would it be worht applying for a loan elsewhere?

Or would they simply ask for evidence of the CC statements to see if they were under their limits?

NatWest told me to come back in 3 - 6 months (more if poss) once I had put my CCs under their limits. (Collectively, the CCs are only 150 pounds over their limits so it should be okay getting them back down.)

I'd love to make this debt more manageable

CTT_2

I have just tried on line with LLoyds and requested £25000 and the system granted it immediately at a good rate of 6.1 percent. I find they are normally very good.

skintscotsman

Thing is, if I apply for another loan (albeit with a different bank/company) and I get refused again, does that affect my credit score?

CTT_2

Yes it does. However 2 credit searches in 6 months is acceptable. Anymore within that period could cause problems. Also I have found everytime a credit check is carried out my score drops by 23 points for each separate search. Hope some help.

Xbigman

Being over your CC limit and looking to consolidate multiple debts will ring alarm bells with the high street lenders. If you've had loans and then run up credit cards too it will certainly look like you live beyond your means.

Also, were either of your other loans for consolidation? Lenders are starting to become very wary of serial consolidators and this could be another reason.

Ask yourself, if affordability really wasn't a problem why are you over your limit on credit cards?
You can still get a loan and consolidate but you are look more of a bad risk than you might think. Try an affordability test of your own. Pay money off your credit cards each month for the next 6 months, get back well under your limit and then go back to NatWest.
Regards




X

skintscotsman

Xbigman wrote:

Try an affordability test of your own. Pay money off your credit cards each month for the next 6 months, get back well under your limit and then go back to NatWest.

sounds like good advice there actually.

with my slight increase in salary due to my new job, i think it may make a bit more sense to do that.

i was really panicking when they turned me down - and then i thought to myself - "this is nothing that i can't sort in the next 6 months" - especially if i really buck my ideas up.

i know its going to be difficult over the next 6 months but i think it may be the best thing to do, rahter than looking for a quick fix right now.

now, this afternoon's task is to sit down and work out exactly where the goddam money's going over the next 6 months.