Can't get a loan, credit score of 742?

donitz

Hi All, until recently (Today) my credit score was 481 as there was an error on it that has just been removed. I would like to re-finance my debt, and consolidate a car loan, credit card and overdraft into one loan of 11 or 12k if I can, however it seems that a credit score of 742 isn't strong enough? Could it be that as the score has only updated today that the lenders aren't getting the information yet? or is it that 742 isn't strong enough?

Thanks

[Deleted User]

The credit scores don't mean anything and no one will ever see it.

It's all about your credit history, income, existing debts etc. If you need the loan for consolidation, then you're almost certainly going to fail on affordability.

donitz

Deleted_User wrote: »

The credit scores don't mean anything and no one will ever see it..

Why have them then?

[Deleted User]

They're a big money spinner for the CRAs and helps them sell their add on services, such as alerts.

People tend to like numbers, particularly ones that often change.

StopIt

Consolidation loan refused?


Head to the DFW boards.


Consolidation rarely addresses why you have the debt to begin with, and the "extra" you have a month usually then goes on something else, quickly leading to more credit required at ever higher interest, more consolidation and then the LBM.


Remember: The credit providers cannot know that you're going to actually use the money to consolidate, so have to assume that you'll be doubling your debt. Can you afford to be in 20k+ of debt? That's what the lenders will be asking.


Your credit score is totally meaningless, what's in your file is far more important.

DCFC79

donitz wrote: »

Why have them then?

It can be an indication of how your credit history looks.

Have you applied for a loan ?

Are you struggling with the debts ? If you are maybe you should post on the debt free wannabe board.

poppasmurf_bewdley

If you had a credit score of 1000 and were turned down for a £100k loan, you would know the reason why you were turned down. You were wanting too much money.

The same goes for your current situation. A credit score means nothing as companies that give them to you do not lend money.

It's all about ratios of earning/current borrowings/loan requirements/ability to repay the loan. If you already have a car loan, credit card debt and an overdraft, loan companies will probably reckon you are already maxed out.

donitz

Ok, thanks all, I'm not struggling with the debt I have, just would like to put it all into one with a better interest rate really.

DCFC79

donitz wrote: »

Ok, thanks all, I'm not struggling with the debt I have, just would like to put it all into one with a better interest rate really.

Probably wont happen unless you earn mega bucks.

Any debts or negatives on your credit file ?

Caz3121

donitz wrote: »

Ok, thanks all, I'm not struggling with the debt I have, just would like to put it all into one with a better interest rate really.

Are your current debts on particularly high rates?
have you looked at 0% credit cards to transfer debt to
Are you currently paying the maximum you can afford towards your debts (with the most going to the highest rates?)
Although you are planning to consolidate, lenders will look at this as additional borrowing (as there is no guarantee you will use the money to pay off existing debt) So if you currently have £12k debt and want to take another £12k debt you will need an income that will support a total debt of £24k - what % of your income would that be?

System

donitz wrote: »

Ok, thanks all, I'm not struggling with the debt I have, just would like to put it all into one with a better interest rate really.

If you earn say £20,000, have £12,000 of borrowing and want to borrow £12000 for a consolidation the likelihood is that the answer will be no. The reason is because of your high level of existing debt in relationship to your income and quite often people who get consolidation loans don't repay the debt they intended to with the loan so it just adds to what they already have.