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

donitz

DCFC79 wrote: »

Probably wont happen unless you earn mega bucks.

Any debts or negatives on your credit file ?

Other than the debt I mentioned, credit report is ok, no defaults or CCJ's or anything

Caz3121

donitz wrote: »

Other than the debt I mentioned, credit report is ok, no defaults or CCJ's or anything

then it is back to post 2 and affordability....do you earn £40k+?

Nasqueron

donitz wrote: »

Why have them then?

The UK credit agencies (Experian and Equifax*) are desperately trying to get their US model into the UK - in the US the score IS meaningful in that lenders see it and make commercial judgements on it, though the flip side is consumers know how it's generated - the FICO model is roughly 35% payment history, 30% debt burden, 15% length of credit history, 10% type of credit used, 10% recent searches.

As above though, you need to think as the bank do, not as you do. Many years of ocean finance style consolidation loan companies which encouraged people to waste all their extra money after consolidation e.g. going on holiday when they are in debt troubles have resulted in the consolidation market being taken out of the mainstream lending market.

Say you have £15,000 of debts paying various APRs averaging 25% APR over 4 years with monthly payments of £476.86, to you it is logical, borrow £15,000 more at 10%, payment is £377.34 so you save nearly £100 a month. What your lender see is £30,000 of debt (as there is no guarantee you will actually use the money to pay the debts / no guarantee you won't simply run up the debts again after they are cleared) so they judge affordability on £30,000 (say over 5 years at 10% that's £631.07 a month) and that would be more than you are paying now.

The only way a consolidation loan could be done is in some sort of managed way with a debt charity where they pay your debts off with the money and close all the lines of credit to prevent you running it up again, but even then you could try and take out more loans when you run out of cash - humans have an odd way of absorbing the extra money other than saving / managing it sensibly



*I excluded callcredit/noddle as the US third agency is Transunion which, while it works with callcredit, isn't in the US