Perfect credit score, but unable to get credit

enthusiasticsaver

Consolidation loans are not the way to deal with unaffordable debt. 
What did you take the 2 current loans out for?
What interest rate are you paying on them and the credit card? 
Lenders have their own ways of scoring applications and they don't care about credit score.  It is just a guide. I would think that on an income of £28k and unsecured  debt of £17k they have refused you because they do not think you can deal with any more debt.  They do not know you intend to repay existing debt and some people don't  or they build up credit card debt again which is why consolidation loans don't work.  You need to look at budgeting and make a plan to start repaying it.  What term are the existing loans over? 

epm-84

Justinab said:

Out of interest where did MSE post the advice?

Martin Lewis constantly mentions it in response to questions on TV programmes, at roadshows and on social media.

The example he likes to use is along the lines of:
Person A is someone you know and trust to pay you back on time.
Person B is someone you haven't lent money to before and you're not aware of them loaning money from anyone else you know before.

Who would you most be willing to lend money to?

Person A is the person with a lending history.  Person B is the person without a lending history but with an excellent credit score.

His usual suggestion is to get a credit card and repay it in full every month, hence avoiding paying any interest and also building up a credit history.

MovingForwards

The awkward thing is no one says the CRA score is different to the scoring done by financial institutions when they talk about scoring. When there's reference to scoring a lot of people think that means the CRA score.

You could take your profile to two lenders and score (internally) different with each, due to how their algorithms are.

dr_adidas01

MovingForwards said:

The awkward thing is no one says the CRA score is different to the scoring done by financial institutions when they talk about scoring. When there's reference to scoring a lot of people think that means the CRA score.

You could take your profile to two lenders and score (internally) different with each, due to how their algorithms are.

Not sure about that lots of posters on here myself included have said that a lender scores you against there own internal scoring method and that the number the CRA’s give is never used by a lender and is pointless. 

The_Boss

dr_adidas01 said:

MovingForwards said:

The awkward thing is no one says the CRA score is different to the scoring done by financial institutions when they talk about scoring. When there's reference to scoring a lot of people think that means the CRA score.

You could take your profile to two lenders and score (internally) different with each, due to how their algorithms are.

Not sure about that lots of posters on here myself included have said that a lender scores you against there own internal scoring method and that the number the CRA’s give is never used by a lender and is pointless. 

You're both effectively saying the same thing.

jamjar92

Justinab said:

Morning all

I currently have 2 loans amounting to approx £14k and a credit card at about £3k.  My total payments on these three are quite high each month so I have been looking into ways of reducing my monthly expenditure to make it more affordable for me (I have no other debts, no previous CCJ's, IVA's or anything like that).

A few months ago I applied for an consolidation loan but was turned down.  And today I applied for a 0% balance transfer credit card with Nat West (who I bank with) and was also declined.  This is all despite having a very score that is almost at the maximum level.
So I dont really understand why I keep getting declined, does anyone have any ideas?  Also, does anyone have any further ideas on how to reduce my monthly payments on these debts?
Many thanks.

Try a credit union to clear the highest APR debt, the credit card of 3K? Then cut the card up.