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Refused with a good credit score/report...

Last post Sat, Nov 27 2010, 3:29 AM by rickyjbhb. 8 replies.
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  •  Sat, Nov 27 2010, 3:29 AM

    Re: Refused with a good credit score/report...

    <a href="http://www.mendmydebt.com/debt-consolidation" rel="nofollow">Credit Report</a>
    • Post Points: 5
  •  Fri, Dec 07 2007, 5:32 PM

    Re: Refused with a good credit score/report...

    Hi

     after reading this i think that as its a case of all lending companies now being very wary of the credit crunch, obtaining credit of any kind appears that it is going to be very difficult unless people have excellent credit scores and very little or no outstanding debts - I have learned from Bitter experience that the only way to pay off the debts is too really cut spending pay over the minimum required and pay off the one with the  highest interest rates first. that is what i am doing - its hard at times however it will be worth it - I have cut up all my cards except my debit card - I have written to the card companies to close my accounts and ask for proof that this has been done! make sure that you pay off at least the minimum on time, every month, even one late payment now will have disasterous effects.  

     Good luck to you - you will do it, set yourself goals - ie pay off this card by .... trust me it works - set up a spread sheet so that you can see the balances reducing - when you get the monthly bills pay the minimum then some more and then I pay off the odd pounds and pence as well -

     k

     

    • Post Points: 20
  •  Tue, Dec 04 2007, 5:50 PM

    Re: Refused with a good credit score/report...

    The hardest loan to get today is going to be a loan that doesn't reduce borrowing but consolidates it / changes the term for the worse. You may as well post a letter to the lender saying 'I can't afford my debts so I'd like you to take on the risk...'
    • Post Points: 20
  •  Tue, Nov 13 2007, 1:01 PM

    Re: Refused with a good credit score/report...

    Indeed...Hindsight is a wonderful thing  :o(

    My only option seems to be to chip off as much more as I can each month from the cards, but this is going to take years and years and years.... 

    Can anyone suggest any other alternative? 

     

    • Post Points: 5
  •  Tue, Nov 13 2007, 12:25 PM

    Re: Refused with a good credit score/report...

    I know. I sometimes think just how much money I would have spare if I didn't rack up loans and credit cards! I suppose you live and learn. :(

    • Post Points: 5
  •  Tue, Nov 13 2007, 10:14 AM

    Re: Refused with a good credit score/report...

    Hi again

     Thank you. It's reassuring to know someone else is in the same position! 

     Thanks also for the advice, this is actually what I am currently doing, except as I am now tied into 5 credit cards that have gone beyond their 0% rate, I am being charged 20% - 30% by most and by purely sinking in most of my disposable income will take decades to pay them off rather than years!

    I originally fell into the trap of making minimum repayments (thinking I would transfer over to another card after the 0% finished).  However, as a combined approach this just got worse.  

    One shocking example is a credit card I took out in June 2005, who gave me £8,500 limit (at the time I was overjoyed as I could consolidate 2 credit cards). However, when you reach the end of the 0% and apply for another, it's a joke because you have to committ to proceed before knowing the limit they will give you...and of course that's then ANOTHER search on your record that you can't undo.  In my case one example was an acceptance then a limit of £1,800 - pointless when it meant I was only taking on an ADDITIONAL card as I couldn't clear the balance in question).  So, having not been able to transfer the balance (I immediately closed this 'new' card without transferring any money to it - back in January) the balance remained very close to the £8,500 during the 0% as I was paying off approx £5 a month.  Foolishly, I have remained paying the minimum amount.....This means that despite paying over £100 a month for the last 9 mths or so in repayments, the balance is still only £8,318 as still only approx £5 of this is trully repayment.  It makes me feel sick when a lot more of this £100 a mth could be paying off the balance.  now with no alternative route of CC or Loan I have no choice but to pay and extra £20 a month off each CC and perhaps in 20 years I will have paid them off!!!!

    I'd be quite happy to send cut up CC's and proof of a settled CC to a loan company as part of a deal if that gave them the reassurance I was using the extended credit to pay off debt and not just add to my existing debt!  Arghhhh, why did I get myself into this mess????   

     

    • Post Points: 35
  •  Tue, Nov 13 2007, 8:46 AM

    Re: Refused with a good credit score/report...

    I am NOT a financial expert, but I have been on these forums for long enough to understand more than most.

    This sounds to me as though your loans are being refused on the basis of affordability (ie: your disposable income after current debts have been taken into consideration). There are much better minds than mine on this forum who may have more insight into this, but right now you only have to have a minor blot on your record in the last six years to be regarded as an unacceptable risk and have credit refused. That said, £39,000 in unsecured debt against an income of £45,000 gross makes it very unlikely that anyone would consider extending you credit against your income.

    As was said in the other reply - there is an almost 50% refusal rate in unsecured loans right now which is making life very hard for people who would normally have been granted a loan in their particular circumstances.

    In your position, I would focus on clearing the high interest/high debt cards first and then deal with others as you can. There is no 'quick' fix for this situation and as you will know from your bank colleagues many people are facing a long road of "cold turkey" before their personal circumstances will be back to something approaching financial nirvana again.

    Sorry that this is not offering much help, but today's situation is not a pleasant one for many of us.

    SHARK! 

    • Post Points: 5
  •  Tue, Nov 13 2007, 8:31 AM

    Re: Refused with a good credit score/report...

    Hello!

    I'm in the exactly the same position as you are. Good credit score and on a decent wage. And, like you I owe a fair amount on loans and cards etc.. I applied for a credit card to transfer a balance and was declined. When the card company wrote to me they said the reason for declining me was because I was fully committed with all my other outgoings. Seems to me at the minute it's becoming more and more difficult to obtain credit. I read in the paper the other day that at the minute 48% of people who apply for credit get refused!

     

    • Post Points: 20
  •  Mon, Nov 12 2007, 10:47 PM

    Refused with a good credit score/report...

    Hi everyone – my first post here, I hope you can help….

     

    I have recently been declined both a credit card and a loan that I was seeking for debt consolidation.  I would very much appreciate some advice on why this can be the case. 

     

    I am a 32 year old single female, working in Project Management for a UK bank.  I live with my partner who has his own mortgage but whom I am not financially connected to.   I earn c£45,000 gross, but owe £39,000 in x2 loans and 5 credit cards. Monthly income is £2,600 net.  Debt outgoings are approx £1,600.  This leaves me (theoretically) with c£1k for living expenses.  I have been advised that I would not be eligible for IVA due to my income and would prefer not to tarnish my credit record if I can avoid it – I make all payments but want to proactively reduce the amount I owe.

     

    Following my declined credit card application (balance transfer to take advantage of 0% back in Sep), my loan application took place this evening with one of my existing loan companies (due to finish May) who had approached me to offer another loan - it was declined.  I am awaiting a callback from someone who may be able to provide more information on the reason for this (though I am not hopeful I will get such an explanation). 

     

    Experian shows a flawless repayment record and a score of 931 from a possible 1000 (rating me as ‘Good’ from V.Poor, Poor, Fair, Good and Excellent).  Equifax shows a rating of ‘Excellent’ from the same options as above and a score of 526 (where excellent = 475+).  This report showed 1 inaccurate late payment (which should be removed next month following a call where it was agreed to be removed) and one more late payment back in 2002.  I have checked my financial links and both companies name no-one else.  The last credit search on my record prior to the recent two mentioned above was in January.

     

    Previous experience tells me Experian will not give any further explanation than the report and score they already provide. I now have 2 more credit searches on my record in the last 2 months which of course will now further influence any future searches.  I feel like I am between a rock and a hard place.

     

    I believe that the amount I owe may be the biggest reason for declining my requests, but it is very frustrating when I am trying to proactively reduce my debt before it becomes unmanageable, and yet I don’t seem to be able to find a way to do this!

    If I advise that my reason for additional lending is debt consolidation, why am I being refused?  Or is it because they cannot be sure I will use the money for this reason?

     

    I am really frustrated and upset, so hope someone can shed some light for me!!!!

     

    Thanks.

    • Post Points: 20