Consolidation Advice

Kenpachi

Dear Money Saving Expert Forums;

My current #'s are;
- Salary, £25K-£27K Bracket

Personal Loan; £9000 (18% Apr)
Overdraft; £1000
Family Credit; £5000
Credit Card; £2000

Experian Score; 820 / 999 (Daily Report)
Noddle; 570 / 710 (Free Report)
Check My File; 850 / 1000 (Trial Report)

I also had an extra 3 lines of Credit Cards that had balances (totalling up to a value of £2500) however I have completely paid them all off last week. I am hoping for them to reflect that on my new daily/monthly credit report (I pay for Experian, and I also have access to Credit Club. Just realised that there is no point paying for a daily service when the credit companies only send the report to them once a month anyway).

I wanted to ask for some advice please in relation to consolidating the final amount of debt that I have (£17,000). I currently have a loan for £9000 on 18% APR, is it worth it for me to see if I can get a larger loan with less APR and consolidate the whole lot together?

Credit Club/Experian and Noddle are both showing that I should be 95% eligible for an Admiral Loan for approx 4% APR, however upon glancing on a few other threads, it seems that another individual with good credit rating failed to get the loan (which stays on record for 6 months).

I have also read somewhere (I cannot reference now unfortunately as I can't find it) that its better to apply for a loan earlier on in the month as the banks will not have hit their quota etc? Any truth to this?

Any good advice will be appreciated.

Thank you
Kenpachi

DCFC79

Kenpachi wrote: »

Dear Money Saving Expert Forums;

My current #'s are;
- Salary, £25K-£27K Bracket

Personal Loan; £9000 (18% Apr)
Overdraft; £1000
Family Credit; £5000
Credit Card; £2000

Experian Score; 820 / 999 (Daily Report)
Noddle; 570 / 710 (Free Report)
Check My File; 850 / 1000 (Trial Report)

I also had an extra 3 lines of Credit Cards that had balances (totalling up to a value of £2500) however I have completely paid them all off last week. I am hoping for them to reflect that on my new daily/monthly credit report (I pay for Experian, and I also have access to Credit Club. Just realised that there is no point paying for a daily service when the credit companies only send the report to them once a month anyway).

I wanted to ask for some advice please in relation to consolidating the final amount of debt that I have (£17,000). I currently have a loan for £9000 on 18% APR, is it worth it for me to see if I can get a larger loan with less APR and consolidate the whole lot together?

Credit Club/Experian and Noddle are both showing that I should be 95% eligible for an Admiral Loan for approx 4% APR, however upon glancing on a few other threads, it seems that another individual with good credit rating failed to get the loan (which stays on record for 6 months).

I have also read somewhere (I cannot reference now unfortunately as I can't find it) that its better to apply for a loan earlier on in the month as the banks will not have hit their quota etc? Any truth to this?

Any good advice will be appreciated.

Thank you
Kenpachi

Ill get in before anyone else, your credit rating isn't I repeat isn't taken into account for loans or anything financial, let alone can lenders even see the score.


What matters is your credit history.

Kenpachi

DCFC79 wrote: »

Ill get in before anyone else, your credit rating isn't I repeat isn't taken into account for loans or anything financial, let alone can lenders even see the score.


What matters is your credit history.

Thank you for your quick response. :beer:

I have 0 defaults or late payments, yet the low score (even though the score doesn't mean anything). With my bank I can check if I can get additional borrowing, and thus I get soft search quotes (or quotes that don't appear on my credit report), sometimes its 20% Apr, sometimes its 30% Apr.

Mega confused as to how they work these things out.

[Deleted User]

Don't take another loan

Cut back as much as you can and throw it at the highest interest bearing debts first.

Why do you have a personal loan? This won't look good to lenders as it makes you seem desperate for money.

Have you tried an eligibility checker for a balance transfer credit card to transfer that debt to a 0% card to stop any interest?

And as above ignore the scores.

Kenpachi

!!! wrote: »

Don't take another loan

Cut back as much as you can and throw it at the highest interest bearing debts first.

Why do you have a personal loan? This won't look good to lenders as it makes you seem desperate for money.

Have you tried an eligibility checker for a balance transfer credit card to transfer that debt to a 0% card to stop any interest?

And as above ignore the scores.

Thank you for your response.

I did not know the above in relation to Personal Loans. I thought they were a better option compared to spending on Credit Cards.

I have not tried or considered getting a Credit Card as I thought/think that a new CC might not be able to offer me the limit that I require.

Thank you

glentoran99

you owe 17000, You cant afford to owe 34000 that's how they look at it, there is no guarantee that you will repay the outstanding debt and therefore they assume you wont

glentoran99

!!! wrote: »

Don't take another loan

Cut back as much as you can and throw it at the highest interest bearing debts first.

Why do you have a personal loan? This won't look good to lenders as it makes you seem desperate for money.

Have you tried an eligibility checker for a balance transfer credit card to transfer that debt to a 0% card to stop any interest?

And as above ignore the scores.

pretty sure that's not true and you are confusing with payday loans

Sncjw

So you want 34k of debt on income of 25k.
Consolidation is doubling the debt as the lender won!!!8217;t know you paying off loan.

Kenpachi

glentoran99 wrote: »

you owe 17000, You cant afford to owe 34000 that's how they look at it, there is no guarantee that you will repay the outstanding debt and therefore they assume you wont

Sncjw wrote: »

So you want 34k of debt on income of 25k.
Consolidation is doubling the debt as the lender won!!!8217;t know you paying off loan.

Thank you for the posts.

I owe the banks £12K. £5K is to my family.

The £17K is to consolidate the whole lot, at a lower APR than I am currently paying.

boo_star

Kenpachi wrote: »

Thank you for the posts.

I owe the banks £12K. £5K is to my family.

The £17K is to consolidate the whole lot, at a lower APR than I am currently paying.

That may be the case but the banks will view affordability on the basis of you not paying it off unless they have a way to guarantee the amount is paid off, such as if the debt being paid off was with them.

On that basis, even assuming they are unaware of the family debt, the total amount of debt would be 29k. They're unlikely to lend past 50% of your annual income so a consolidation loan is almost certainly out of the question. Certainly with a prime lender.

[Deleted User]

Use an eligibility checker to see what balance transfer options you may be eligible for.

You won't know the limit until you apply and accept but it's a good start and if you can get one with a decent balance transfer 0% promo then thats 2000 to worry slightly less about.

How long is left on the current loan?