When to re apply after being refused credit

candy_kidd

Hi everyone,


Last month I applied for a loan with my current lender (Sainsbury's) I wanted more money to pay that existing loan off and put my CC into an new loan with them, I was refused and turned down.
my credit scored is ok 3/5 Noodle Report says


my question is how long should I leave it before I apply again?


I was thinking of trying Tesco loans instead but I didn't want to try again if this is going to affect my credit rating too much.


any help or how long should I leave it before I re apply for credit again?


Thank you.

[Deleted User]

You don't have a credit score or credit rating, It's a made up number for entertainment purposes only.

How much do you owe and what's your income ?
What rates is your current debt at?
What is your credit history like?

Consolidation may not be possible, or even desirable.

Willing2Learn

I would wait a good six months.

How much do you owe on your CC? How much do owe on the loan? Are you having problems with your monthly budget?

If you are eligible, you could apply for a 0% money transfer card to pay off the loan and card...But you have to watch and be careful you don't use it to increase your overall debt.

PRAISETHESUN

In general wait 3-6 months between credit applications, especially if they are declined. Have a look at your reports from all the CRAs to see why you were declined - my guess would be existing levels of debt. They will assess affordability on having double the amount of debt if you are trying to consolidate, as there is no guarantee that you will actually use the new debt to pay off the old debt.

Also ignore the scores. Every lender uses their own internal criteria to assess your application. What matters most is the content of your credit HISTORY - which will be evident from your reports with all three CRAs

T-G-C

I believe that Sainsbury's recommend refused applicants to refrain from making another application for a minimum of 6 months.

As others have said, it could be due to the amount already owed and debt elsewhere. All of this is taken into consideration and as a mainstream lender, have an especially strict criteria for their financial products. Although being an existing customer may have some to no influence on their initial decisions, the outcome of checks such as affordability will override this influence each time.

DCFC79

Do Sainsburys report to Call Credit aka Noddle ?
They may use another agency as well.

PixelPound

What size is your existing loan and CC. Whilst you are aiming to pay off the existing loan, this cannot be guaranteed and so it has to be considered as you will have had two loans and the CCJ and could you service them from your wage.

So why are you rolling one loan into another? Would the new loan have been lower APR? To settle the first loan you would need to request a settlement figure and that could include 2 months interest.

As suggested another alternative is to move the CC across to a 0% card. Though we don't know your finances or debt levels as to whether this would be an option, or have financial discipline enough to treat the CC as a loan repayment.