Loan Problem (Credit Reference Agencies)

[djtdjt]

Is there any bank or loan company that believes the customer rather than the credit reference agencies ? Have a good income now so could clear all payments with one loan drastically reducing my repayments each month...but guess what...no bank, not even my own will believe me as I cannot get through credit checks ! Any ideas, thanks.

[CheekyChops]

Believe you in what way? They don't believe that you can afford the repayments or they don't believe that you will use the loan to repay your debts?

Most lenders (if not all) will add your existing debts to any loan you are applying for as they can't be certain that you will use the funds to repay the existing debt. So if you have 15k of debt and apply for a 15k loan, they will work on the assumption that your total debt will be 30k.

What is your credit file like, do you have any late payments, defaults or CCJ's? If so, that will reduce your chances of being accepted even further.

And as a very rough guide, you are unlikely to be able to borrow any more than 50% of your annual salary.

[djtdjt]

Believe me as in income/local etc.. my bank knows my situation but will take credit reference agencies word rather than mine, apparently they cannot override this! Could clear everything with £5000 Sainsbury's bank loan at £98 per month (example) I am paying twice that for about £3000 ! See what I mean ! Government should crack down on credit agencies rather that high interest loan lenders to stop people like me having to turn to them rather than High Street (normal bank) lenders.

[CheekyChops]

I don't really understand what you mean. Credit Reference Agencies do not tell a lender whether to lend you money or not. They will report on your existing credit agreement, how many you have, how much you owe, how good you are at making repayments on time etc. The bank then uses this information to decide whether to give you a loan or not.

Credit reference agencies will have no information regarding your income and I don't know what local is. Your bank should know your income, assuming it gets paid into your account.

As I said earlier, if you have any late payments, defaults or CCJ's, this will be reported to the prospective lender who will probably decline to lend you any money.

[factor-fiction]

I agree with CheekyChops too, djtdjt. If your credit record is wrong you can correct it. If it's right it's up to the lenders how they use it. It may be worth trying to improve your rating in some way before seeking another loan

[Postdog]

Bad idea using a loan to pay off loans, even if in black and white it seems a good idea. Far better to consider your worst debt, clear that, and so on. And by worst debt I mean the one with higher interest payments than highest amount owed.