How can I get a loan when my credit rating is affected by my credit card debt?

victoriats

Hi, I have received no support/help from banks, government, council grants etc! I have applied for a BBL got refused and appealed, not heard anything back yet. I tried to apply for a loan today via my bank, which has a 3.3% interest, refused. I am not bankrupt. Never have been. Own my house. Self employed. Been adversely affected by covid. What can I do and why is my bank not helping?
Thanks
Victoria

femalemonarchfemalecanine

have you looked into whether you are eligible for any tax credits or universal credit? sorry, don't know what else to suggest.

foxy-stoat

You probably need to repay some of your credit card debt and leave it 6 months before applying for any more credit.  What is your salary to credit card debt ratio like, as this may be the reason you have had 2 declines.

Grumpy_chap

Why did you not get BBLS?
Why did you not get SEISS?

DCFC79

victoriats said:

Hi, I have received no support/help from banks, government, council grants etc! I have applied for a BBL got refused and appealed, not heard anything back yet. I tried to apply for a loan today via my bank, which has a 3.3% interest, refused. I am not bankrupt. Never have been. Own my house. Self employed. Been adversely affected by covid. What can I do and why is my bank not helping?
Thanks
Victoria

Maybe you need to consider getting a temporary job to tide you over.
Id stop looking for a loan, how would you make the monthly payments ?

Your credit rating is only seen by yourself and no one else, your history is whats important.

victoriats

I am getting Universal Credit, although it is noo extra for covid support!
I was refused BBL and SEISS because I have only 1 year of tax records.
I understand the point about salery debt ration, however it misses the point that the lockdown have caused my plight, not my failing.
I cannot get a temporary job, I have a business as a therapist and have clients.
My credit history is ok, I have never deferred on a payment or not paid off a credit card/loan.
I am desperate and tired of knock backs and banks ignoring the lockdown as a financial impact.
Thanks, any other information is much appreciated.
Victoria

sourcrates

No one will loan you money when you cannot pay it back, no matter what the circumstances.

You are not alone in this, 1000`s have fallen through the cracks also, its a case of doing what you have to do to survive until a sense of normallity returns.

DCFC79

victoriats said:

I am getting Universal Credit, although it is noo extra for covid support!
I was refused BBL and SEISS because I have only 1 year of tax records.
I understand the point about salery debt ration, however it misses the point that the lockdown have caused my plight, not my failing.
I cannot get a temporary job, I have a business as a therapist and have clients.
My credit history is ok, I have never deferred on a payment or not paid off a credit card/loan.
I am desperate and tired of knock backs and banks ignoring the lockdown as a financial impact.
Thanks, any other information is much appreciated.
Victoria

Apologies I assumed you had no money coming in or it was limited.

You can get a temporary job, you work when your working as a therapist.

Yes lockdown has caused this and no its not your fault.

Grumpy_chap

victoriats said:

I am getting Universal Credit, although it is noo extra for covid support!

I understand the maximum payable under UC was increased by about £1k per year because of coronavirus, though if you are a new claimant you may not notice the generosity.  It may be worth double checking that is being paid if you are eligible as no-one wants to miss out on anything.  If you are receiving the 'enhanced' coronavirus payment, it is worth knowing in case it is withdrawn at any time.

victoriats said:

I was refused BBL and SEISS because I have only 1 year of tax records.victoriats said:

There are different criteria for SEISS and BBLS. 

If you were not trading as self employed for 2018-19 tax year, it sound like you probably will not be eligible for SEISS. 
  
BBLS simply requires that you were trading before 1st March, which it sounds like you probably were. 
Did the bank give you any reason for your rejection? 
Do you have a business bank account? 
How did you work out the amount of loan you applied for? 
Have you checked the other criteria at the FAQ?  https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/faqs-for-small-businesses/#f2 
It certainly looks as though BBLS is worth investigating again.  Your situation seems, in the face of it, exactly the situation BBLS would have been set up for.

victoriats said:

I cannot get a temporary job, I have a business as a therapist and have clients.

Does this mean you are now back working?
What type of therapist service do you provide?
If you are not back working, what is the reason?  What are the criteria and timescales indicated for when you would be able to go back to work?
I assume the demand for therapist services will be just as high now as ever before...

Hope something can be done to find you a way forward.

Emmia

What type of therapist are you?  Do you work as a counsellor or doing beauty treatments (for example)?

Sandtree

victoriats said:

I understand the point about salery debt ration, however it misses the point that the lockdown have caused my plight, not my failing.

Sorry to be harsh but... so what?

Banks are commercial entities and are there to make a profit for their shareholders ultimately. Whilst the reduction in your income is not your fault they ultimately will decide if the return on investment is worth the risk of lending you money and clearly at the moment with lots of people being in a non-fault bad situation they are being more prudent over who they'll give money to. 

The "Debt Free Wannabe" section of the forum has people that are very good at helping you to reduce your monthly outgoings so suggest trying over there. Its not clear if business is now back and your just chasing your tail or if things are still very hard and just not as bad as they were before? I assume you need flexibility to have appointments at your clients convenience hence not wanting to take a part time job but maybe you dont need as much flexibility as you currently have and presumably many of your clients can be more flexible than they traditionally were.