Loan to pay off credit cards

[kjmf]

I have got a few �1000 on credit cards and I recently applied for a loan through my own bank to pay them all off. My credit rating isn't brilliant due to being a slack student and generally being irresponsible with money in the past. I don't have any CCJ's or defaults but the loan was refused. I sent off for my credit report from experian and it looked fine. I checked I was on the electoral role and I am. When I spoke to the bank to ask why I had been refused the loan they said it could be because I would be doubling my debt. But obviously I wouldn't, as I would be using the loan to clear my existing debt.
Does anyone have any ideas as to how I would be able to get a loan to clear my debt? I'm not a homeowner but would like to hence want to consolidate all my credit cards debts to reduce the amount of interest. I earn an ok salary and don't struggle.
Can anyone offer me any advice of refer me to someone who would be able to advise me on this.
Thanks in advance

[EverClean]

Depends on what you are looking for. Will a balance transfer credit card with no fees to transfer and a 0% rate not do the job better? Have you explained to your bank that the borrowing is to pay off the existing debt?
Northern Rock usually have the best rates and the best underwriting criteria for unsecured personal loan so try them. If you can't get this from a High Street lender then contact someone like Freedom - they are master brokers and will find a product for you - just watch out for the rate (will be higher than High St) and don't take out payment protection with them.
Hope this helps.

[kjmf]

Thanks very much, thats really helpful. I did explain to my bank that it was for existing debt but it made no difference unfortunately. I'll try your suggestions, thanks again.

[Finance Guy]

Be careful when shopping around, as multiple credit aplications leave 'footprints' on your credit file and lenders will look at how many applications you have made in recent weeks / months to assess your application with them. More than 3 or 4 in the preceeding 12 weeks will almost certainly cause you issues in being accepted.

To explain this, see it from the lenders viewpoint, they do not know if you were accepted or not with your previous applications so usually take the presumption that you are 'credit stacking' - i.e. uptaking mass credit,which is a big indicator of possible credit fraud / abuse.

Leave it 3 monthsand then try again if you fall into the above category at all.

I agree with the above comment about PPP, but I do not agree with using Freedom - they will charge you a broker fee and place you with a higher interest lender. The fee alone will add around 1% to the APR and be interest bearing for the term of the loan.

Are you on the electoral roll? Do you have less than three addresses in the last six years? Do you always make payments to your cards on time? If the answer to any of these is 'No', there will probably lie your problem, as banks use all of these factors to assess your application.

Try going to Black Horse, northern rock ,Halifax or Lloyds TSB.

Good luck

[kjmf]

Thanks Finance Guy. Maybe that's the reason why, I've been refused. I have moved around quite a lot in the past 6 years. Currently living in my 5th address of 6 years so not too good if that's what they are looking at!
I will carry on looking around, but at least I may have a reason why I've been refused in the past!

[shelley2]

Hi there, i was in exactly the same position as you last year, only finished uni a year and wanted to pay my credit cards and other things off.. The bank refused my loan application, i got my credit reports and checked i was on the electorol roll as well, and then someone mentioned that i go to the underwriters at the bank which i did, as i had no reason to be refused a loan only i had quite alot of credit already - after a while i eventually got my loan at a very high interest rate, this involved going to the bank with copies of credit reports, pay slips etc which they forwarded on to the under writers