HSBC Personal loan

percolate

Hi, I am looking for hsbc personal loan of 30K ( I have Premier account with them). I have 3 credit cards with a total of 23K limit and 10% utilisation. I also use 97% of arranged overdraft in one of my accounts with 0% interest for 12 months. MSE eligibility shows 70% probability for this loan. Can you please give some tips to improve the eligibility? If I pay off arranged overdraft, will it help? Also, I have applied for hsbc credit card and arranged overdraft a 1-2 months ago and both were successful. Given this, will it help if I wait for 4-5 months?

TadleyBaggie

A lot depends on your income. If it was 30k then not a chance. If it is 60k then maybe. 

Brie

So you're using most of your overdraft?  That might send up red flags.  

What the bank will be looking at is how much you can afford.  So how much can they risk to give you.

Add up all your credit card limits and all of your overdrafts and then add in the fact that you might have a phone contract or be paying for your motor insurance monthly.  Then look where you can cut back on these amounts.  The CCs that you have but aren't using would be a good place to start.  Is there one that you never use - then cancel that account.  Or one that has a particularly high credit limit?  Get that reduced.  

Then wait at least 3 months before applying for anything else.  It will take that long for everything to be updated on your credit history. 

Meantime, if the need for the loan isn't very urgent maybe you should ask yourself if you actually need it at all.   

percolate

TadleyBaggie said:

A lot depends on your income. If it was 30k then not a chance. If it is 60k then maybe. 

Yes, income is more than that. I am wondering about tweaking credit history to make lenders happy.

percolate

Brie said:

So you're using most of your overdraft?  That might send up red flags.  

What the bank will be looking at is how much you can afford.  So how much can they risk to give you.

Add up all your credit card limits and all of your overdrafts and then add in the fact that you might have a phone contract or be paying for your motor insurance monthly.  Then look where you can cut back on these amounts.  The CCs that you have but aren't using would be a good place to start.  Is there one that you never use - then cancel that account.  Or one that has a particularly high credit limit?  Get that reduced.  

Then wait at least 3 months before applying for anything else.  It will take that long for everything to be updated on your credit history. 

Meantime, if the need for the loan isn't very urgent maybe you should ask yourself if you actually need it at all.   

I took couple of credit cards recently that make up 15K limit just to make good credit history ( though I don't need that much credit limit). One of them has 0% purchase and I am slow stoozing. Another one is from HSBC which I can close if needed. What would be an ideal total credit limit? Does it depends on the income?

R_P_W

You want to borrow £30k but are using 97% of your overdraft?  Id suggest not using the overdraft at all going forwards, not to increase your chances of getting the loan but just because if you have a decent income and are living within your means you shouldn't need to constantly be overdrawn.

percolate

that's just on one account which has promotional 0% interest for 12% months. I can pay it off anytime if needed.