Poor but not really bad credit - companies who will loan

Roamy_1001

I want to apply for a loan to consolidate my existing loan with my bank Natwest, my overdraft with Natwest and an overdraft facility thing (which I'm not sure if that is actually what it is) that I have with a company called Safetynet. On the overdraft facility thing I have with Safetynet I borrow £800 per month and the fee/interest I pay on this monthly is around £150. My overdraft with Natwest is £1,250 and I have just under £4,500 left to pay on my Natwest loan. I am desperate to close my overdraft account with Safetynet as the £150 interest I have to pay every month, I feel is a lot. I just can't afford to pay back £950 in one go.

I applied to my own bank Natwest last December for a new loan which would pay off my existing loan and my other debts as mentioned above but was declined. This was after I went through the usual steps, providing all my financial information and after they had sent me out the loan offer for me to sign and they hadn't asked me for any further information after the initial information I provided. I was actually under the impression that I had been successful, and was devastated when I received an email informing me that I hadn't.

I have had a loan with Natwest before and paid it back, never having missed any payments.

Sorry this is a bit jumbled up but what I would really appreciate some help with is whether I should apply for a consolidation loan to consolidate all my debts, and if so could anyone advise what companies might be best to apply to. Or whether instead of applying for a loan, whether it might be better to apply for a credit card transferring both of the overdrafts I have which would total around £2,200?

I am not money savy as is probably evident and any advice would be massively appreciated. I should add that I could actually afford monthly repayments of £350 quite comfortably.

If I apply for a loan I'm worried that I may apply to the wrong company, ie one that I have less chance of being successful with over another, so would really appreciate advice on the best company to apply to. My credit score is 853 with Credit Score. I also haven't applied for any credit ie an increase on my overdraft limit for over 6 months at least.

Sorry once again for how this is written. 

I hope would be so grateful for any advice you could give me.

Kind regards, Roamy

[Deleted User]

Consolidation is rarely a good idea. But you won't get any further borrowing at mainstream rates with your level of indebtedness.

Head for the DFW boards for advice on cutting costs and repaying faster.

Edi81

As zx81 said consolidation loans are rarely a good idea. 

You need to throw any spare cash you have at the safety net loan and overdraft as they will here the highest interest charges. 

Go to the debt free bosrd
and post an SOA - it’s amazing where savings can be identified with the help of others. 

Oh and the credit score means nothing/ nil/ zero/ nada. 

[Deleted User]

Banks won't lend to you because a consolidation loan is seen as new debt + existing debt and thus whether you could afford to service it all. They have no control over whether you will use the loan to pay off the other debt or just spend it on a holiday to the moon and blackjack and hookers (this is a Futurama joke in case anyone gets confused)

Sncjw

If you are in your overdraft that screams you are having trouble to manage your money. No way a bank would loan you further on top of overdraft and a loan you have with them. 

Roamy_1001

Edi81 said:

As zx81 said consolidation loans are rarely a good idea. 

You need to throw any spare cash you have at the safety net loan and overdraft as they will here the highest interest charges. 

Go to the debt free bosrd
and post an SOA - it’s amazing where savings can be identified with the help of others. 

Oh and the credit score means nothing/ nil/ zero/ nada. 

Thank you for your response. Please can I ask another question, and whether in your opinion a balance transfer credit card company would take the same view as a loan provider would? I'm very grateful to you and everyone else for their responses.

Kind regards

R

Roamy_1001

Sncjw said:

If you are in your overdraft that screams you are having trouble to manage your money. No way a bank would loan you further on top of overdraft and a loan you have with them. 

Thank you for your response. Much appreciated.

So in your opinion do you think that it's not even worth applying for a loan even with companies that Credit Score has listed which say that I am 100 % pre-approved? I would really appreciate your opinion please.

Many thanks.

R

DCFC79

Roamy_1001 said:

Edi81 said:

As zx81 said consolidation loans are rarely a good idea. 

You need to throw any spare cash you have at the safety net loan and overdraft as they will here the highest interest charges. 

Go to the debt free bosrd
and post an SOA - it’s amazing where savings can be identified with the help of others. 

Oh and the credit score means nothing/ nil/ zero/ nada. 

Thank you for your response. Please can I ask another question, and whether in your opinion a balance transfer credit card company would take the same view as a loan provider would? I'm very grateful to you and everyone else for their responses.

Kind regards

R

Whether your accepted its up to the lender, either speak to one of them or apply online but choose one with a 0% fee or a lowest fee you can get.

Hovblackctr

Just pay off that safety net one asap and you will be fine.
£150 a month interest is shocking tbh!

sourcrates

Roamy_1001 said:

Sncjw said:

If you are in your overdraft that screams you are having trouble to manage your money. No way a bank would loan you further on top of overdraft and a loan you have with them. 

Thank you for your response. Much appreciated.

So in your opinion do you think that it's not even worth applying for a loan even with companies that Credit Score has listed which say that I am 100 % pre-approved? I would really appreciate your opinion please.

Many thanks.

R

You really need to change your mind set here, as it appears to me your fixated on borrowing your way out of debt, and that is just not possible in the real world, if these debts are becoming a problem, and you have no other way of dealing with them, for example, increasing your income, whilst decreasing your outgoings, then you should look at debt management options.

Depends on your circumstances, but defaulting on the debts and entering debt management may be the route to go with this.

You could maybe pop over to the debt free wannabe forum, post your statement of affairs, and we can look at sensible ways to help you.

MalMonroe

Hi, OP, I agree with Sourcrates.

I've been in a similar situation to yours and didn't see a way out. Many debts later I contacted Stepchange (see Sourcrates' signature for details) and ended up with a Debt Relief Order. However, if you do go to the Debt Free Wannabe forum, you could be helped way before you reach that 'nowhere to turn' stage.

As for being 100% approved for anything I can tell you, from personal experience, that it means nothing. Not worth the paper it's written on. And before you say it isn't written on paper I have to say exactly.

Good luck! But do head over to the DFW page. Lots of lovely people there just waiting to help.