rejected for Credit

[Deleted User]

hey 
I was wanting to refinance my car loan as the APR is crazy but no where will look at me and I wanted your advice 
I earn £35k a year and was wanting to get a loan for £8k  to pay back my car loan and my brother for my moving costs he lent me. 
the outstanding debt I have is 
car finance £7811- if i were to ask for a settlement figure it would be £6015
Aqua Credit card £180 pay £90 a month so the balance will be cleared in Jan 21
Argos Card £258 planning to have this paid off in March 21
Vanquis Card -£323 - expected to be paid off in March 21
HSBC £1485 - £50 a month but at 0% but once all others are paid off expected to be cleared by June 21
Paypal credit - 0 balance but a missed payment due to an error when I was moving my bank I cancelled my bank card that was associated with paypal and I forgot that my spotify was associated with paypal and I never paid (although as soon as they sent the angry letter I paid it in full, I learnt my lesson and will ensure that never happens again 

All other things on my credit score - bank accounts/phone bill etc are all upaid up to date and I am on the electoral roll.

So my question would be, is it the value of my debt that is causing the issue? I know no one knows all policies from business on their lending criteria but the fact that I am getting 0% everywhere I am curious

any advice would be appreciated 

thanks 

[Deleted User]

It's the debt, but also having such small interest bearing balances.  It tells lenders that you have no spare income at all, so cannot take on any more debt.

Pay down some of your existing debt before applying further. Focus on the highest rate debt.

Your patchy credit history is compounding the problem.

[Deleted User]

that's what I am doing.  All of the credit cards are 0% and I am paying them down before the interest is applied. the Car finance is the only interest bearing financial item in my credit history 
What do you mean patchy credit history?

[Deleted User]

Your missed payment and revolving balances.

Focus on the car finance if that's the only interest bearing debt, but watch out for the end dates on Aqua, Argos and Vanquis.

[Deleted User]

right thanks for clarifying 
Also that is my intention with the credit cards to have them cleared down by then, infact I could probably clear them sooner I just want a higher standard of life at the moment, I just had to move to escape an abusive relationship who a big chunk of the credit card debt is related to.
Aqua - end of Jan it will be cleared on the 30th December.
Argos - interest will be applied September but I will have it cleared by March 
Vanquis - my interest free ends in  June so again that will be cleared before that happens

Yahoo_Mail

Are those credit card figures correct?  It's going to take you several months to pay off a few hundred quid?

[Deleted User]

@Yahoo_Mail it's going to take 4 months to pay off 3 of the 4 credit cards (which are all 0%) and then the HSBC will be cleared by June.
I'm using the rest of my salary to pay for my rent and buy the new furniture I need to, I mean I could Pay the 3 off in one month if I wanted, I just thought actually having a bed and mattress might be more important?

ToxicWomble

I would disagree - spend £20 on a blow up mattress and get your debt cleared.

Thats what I would do

Yahoo_Mail

emmiebelle28 said:

@Yahoo_Mail it's going to take 4 months to pay off 3 of the 4 credit cards (which are all 0%) and then the HSBC will be cleared by June.
I'm using the rest of my salary to pay for my rent and buy the new furniture I need to, I mean I could Pay the 3 off in one month if I wanted, I just thought actually having a bed and mattress might be more important?

I'm not saying that. I was asking the question before commenting further.  So now you've answered it here goes.

Paying off those credit cards very slowly isn't going to look good to any prospective lender. It looks like you have about as much credit as you can handle right now.  They will have to assume that you won't use the new loan to consolidate the old one and as things stand that would likely push you over the edge.

That's the likely reason for the rejection.

ToxicWomble

Also - maybe it would have been wise to list your previous credit history and IVA 

Yahoo_Mail

ToxicWomble said:

Also - maybe it would have been wise to list your previous credit history and IVA 

Would have been helpful, yes!

Presumably, those "0%" cards are not exactly what most people would call "0% cards." They're not charging interest because the OP defaulted as part of the IVA, rather than promotional rates?

Presumably then OP has a load of defaulted credit cards on their file OR a very thin file as almost every line of credit has been removed after defaulting 6+ years ago?  No wonder they're getting 0% acceptance rates everywhere.