Refused loan

bird_3

I currently have an outstanding loan balance with HSBC of £7400 with an overdfaft facility of £1500 and a credit card debt of approx £1850 with the same bank. I am transferring this credit card balance to Halifax where I will get an interest free period for 9 months, by which time I will pay off the lions share.

However I wanted to take a consolidation loan with Halifax of £8500 for 7 years which would result in a lower monthly payment. They refused, stating that I had to build up a working relationship with them before being able to apply for any loan! I find this hard to believe when you don't have to bank with a particular financial institution to be successful for a loan.

Does anyone know of a bank that would accomodate my interests? Thanks

jonesMUFCforever

Would HSBC not grant you a Consolidation loan?After all if you do your main banking with them you have already built up a credit history.
I think it is prudent for a bank to see what sort of customer you prove to be before granting a loan. Credit cards on the other side are normally run by a seperate department of a bank and have their own terms and conditions.

MarkyMarkD

But their rates are rubbish!

Why not try Northern Rock or Alliance & Leicester, both of which offer good personal loan rates for amounts over £7,500 (i.e. you).

Halifax's response is ridiculous! Apart from the "big 4" who sell mainly to their existing customers at high rates, most personal loans are sold by the other smaller banks to non-customers.

frepol

Let's face it - the Halifax are Xtra large pillocks. They are the strangest banking organisation in the world. The amount of people I know who have a credit card, a personal loan and a mortgage with them - yet can't have a switch card - must number at least 5. I have also seen this numerous times on various financial websites. They are rigid, bureaucratic and increasingly out to fleece their customers. Their building society traditions have been sadly phased out over the years since demutualisation and they are now no better than the Big 4.

Robert_Sterling_3

 Their building society traditions have been sadly phased out over the years since demutualisation and they are now no better than the Big 4.

Surprise Surprise .... NOT

Rafter

Part of the problem is that your primary banking relationship is with HSBC.

They are the only major bank which do not share information with Experian and Equifax (the credit reference agencies).

Halifax therefore can't see your good payment history on your loan and credit card on which to base their lending decision.

I suggest you try to arrange something through a 'real' person in the high street and take along evidence from your bank statements and credit card statements that you have a good credit history.

You may not get the very best rate, but if you go for a lender without bad penalty interest from switching, you should be able to move fairly quickly.

Give the Nationwide a try perhaps. They seem to have a good reputation for being 'human' when it comes to making lending decisions?

Good luck.

R.