# advice needed ! applying for a loan or credit card



## jc (Aug 10, 2004)

ok the situation is that i have two outstanding debts,these debts were built up while i was working and ive been paying them off slowly even while unemployed (which is my current situation)....there seems to be alot of good deals around offering a lower interest rate,im really keen to transer both debts onto the one account with a lower interest rate...the trouble is ive been turned down on many occasions due to my not working and not earning enough income....i could save myself a fortune in interest charges if only i was able to transfer these outstanding balances....does anybody know a way around this ? 
i dont own a credit card anymore and havnt used credit for 5 years but i really want to take advantage of a lower interest rate ....any advice welcomed


----------



## MrMortgage (Aug 26, 2005)

Okay okay....Are the debts on credit cards? If they are you can call the credit card companies you owe the debts to and ask them to lower your interest rate... 7 times out of ten they will do it to keep your buisness. Just tell them that you have been getting offers from other companies, saying your pre approved to transfer balances at x% rate to another company, but you want to stay loyal to them and are hoping they can match the rate, if they cant match ask them to lower....  :wink: :idea:


----------



## MrMortgage (Aug 26, 2005)

If this fails, look into what your credit card points system and see if it even haves any, this is sort of a reward system, you can get anything from free vacations to deffering interest for a few months depending on how many points you have...


----------



## MrMortgage (Aug 26, 2005)

Do you own a home? How much do you owe on the cards/loans? If you owe a lot you can refinance your home and consolidate debts. I can explain the process to you if your interested.


----------



## jc (Aug 10, 2004)

thanks mr m

ive phoned them and told them im going to transfer etc... but they didnt seem to pay any mind to it,probably because i dont owe a large enough sum,i dont own a house and because im claiming incapacity benefit no-one will give me a loan or another credit account.......the ammount i owe totals at ?2,800 which is about 5,000 $ and im paying 15.6% apr

i dont mind telling them a load of bulls**t as long as it doesnt end me in the crap


----------



## enngirl5 (Aug 10, 2004)

That's bullsh*t. Almost all credit cards will lower your APR if you just call and ask. But 15% isn't horrible compared to some other cards. So that may be as low as they wanna go for right now. Go to bankrate.com and you can find out some good information on debt and credit cards and issues like that.


----------



## Guest (Jan 13, 2006)

Honestly it would be fantastic if all you had to do was ask.
Here (Oz)if you called up and asked them to lower your rate they'd think you were joking.
I'm pretty sure the reply would be "yeah right".

How about your parents JC?
Could they help you out.
One of them could be the primary card holder with you as a co signer.
Speaking from personal experience here.
If Mum or Dad has a good credit rating they could apply for one of these lower rate cards with you.

Better still personal loans usually have a lower interest rate.
Once again your parents could go guarantor.

Failing this don't apply at the major banks.
Try smaller or local institiouns.
A new small bank that's just opened in your area can be worth a try.

As for the employment part.....don't forget to embellish your work history and current employment.
Not working you say,well who needs to know?
No tax figures?only started a short while ago and it's not tax time yet.
Find a mate or relative who would be willing to say you work part time for them.
It's all game.They just like to tick the boxes.
Figure out what they want to hear.
Once you have the card they couldn't care less if you were an out of work porn star as long as you make those payments.

A word of warning.
I'm not sure of how it works in the U.K but here the more times you apply for credit (in a short period) the worse it looks and the more likely you will be knocked back.
They figure if Bank,X,Y and Z knocked you back then there must be something wrong with your credit history.
This is a bit of a catch 22 when you are shopping around.
Best to try and have your basis covered before you apply.

The bottom line is they need to be certain of your affordability and your good track record with credit.
Oh and when it comes to paying rent...........you don't pay any you live at home.
The less outgoings you have the better you will look.

Good Luck


----------



## Guest (Jan 13, 2006)

What about the government? Aren't there often bureaus of some sort that step in when people have this kind of problem? 
Also, what if you put something in writing to them to the effect that if they really want their money, they better be ready to compromise with you since they've made a whack of interest on you already. They won't care about you, of course, but they know that without your cooperation they might not get anything at all.
Seriously, go in there self-righteous and pissed off and tell them to strike a deal or maybe you'll just declare bankruptcy.

Why is it that just when you can least afford it, they can hold you for ransom?


----------



## jc (Aug 10, 2004)

apart from the not working my credit rating is very good...never missed a payment before and usually paid in full before the loans ending time.....its just some cards are offering 10 months interest free credit and i wanted to take advantage of that ...why pay interest when you dont have to ...i dunno ive been turned down by everyone as im not working,its understandable i suppose,i still make the payments but it seems crazy paying interest when i dont have to


----------



## Guest (Jan 13, 2006)

Yeah, then you don't want to mess with your good standing.

Why won't they look at your history? The credit bureau should provide you with one to show them, although they have access to it without you, and if you provide proof of income and show your expenses and they still refuse, they just steeped in brittle bureaucracy.


----------



## Guest (Jan 14, 2006)

Ok Banks are not THE LAW.They have guidelines and rules.
They do not usually link up with gov departments.
For a regular person who is applying for credit they just want you tell them what they have been instructed to ask for.
It's bank policy.
These days they care little about loyalty unless you are a multi millionare(money in the bank).

It's a game.
They make zillions in prophet,they don't need you or me.
Some smaller banks may care about keeping their customers.

Can't say if this is true.A friend told me that advertising angencies are loath take on bank accounts because their image is so tarnished it's beyond redemption.
Let's face it who trusts banks any more?Not here anyway.

They have a system.They have to be able to tick most of the boxes.

Affordabillity is the the most important ingredient at the present time.
Assets don't count as much as affordability.
My bank manager once told me she had clients who owned massive country properties worth millions but were cash flow poor.They had difficulty obtaining loans.

I've applied for and had many loans and read a fair bit about obtaining finance.
One thing I have learnt is if you want to do something then ask somebody who's been there before.You don't have to reinvent the wheel.

Why not read a little about finance?There are lot's of good books about.

Cheers


----------



## terri* (Aug 17, 2004)

> My bank manager once told me she had clients who owned massive country properties worth millions but were cash flow poor.


A wealthy girlfriend of mine once told me 1/2 the people in the country club set were "over extended". In my part of town we call it being in debt up to your a$$. :lol:

Great idea you have, JC, to try and get the 10 month interest free credit so you can transfer. Keep giving it a go...somebody might just crack.


----------



## enngirl5 (Aug 10, 2004)

In the US you can call and ask for a lower interest rate if you have been good with payments, etc. I just did it recently. As for the 10 months interest free, I worry what kind of APR they're gonna stick you with once these 10 months are up.

What kind of job are you looking for jc?


----------



## terri* (Aug 17, 2004)

ohhhh yeah, I didn't even think of that. That would be a very important thing to consider.


----------



## Guest (Jan 14, 2006)

I know someone who faked having a job in a friend's shop to get some credit and nothing bad ever came of it, the loan was paid and the bank none the wiser.


----------



## MrMortgage (Aug 26, 2005)

beachgirl said:


> I know someone who faked having a job in a friend's shop to get some credit and nothing bad ever came of it, the loan was paid and the bank none the wiser.


That's all I needed to hear...Beachgirl you are under arrest for...... :lol:


----------



## Guest (Jan 15, 2006)

enngirl,that's great.Obviously the U.S. banking system is more competitive.
I believe your interest rates are lower than ours as well.

10 months interest free,yep read the fine print.

Some banks offer introductory lower rates here for 6 or 12 months.
There is no catch with this one,it's simply to aquire new customers.

One tip I was told about when applying for credit if you do it in person is to dress to impress.
Dress conservatively.Make sure you have an quality looking pair of shoes on.cons
Where some gold jewelry or an expensive looking watch(could be fake).
Easy to get the picture.

Turn up oozing with confidence.Have the attitude that they'd be stupid not to want you(never tell them that LOL).
Walk in with a folder with all of your past loan history.
Do your own affordabilty sheet,showing them it will be easy peasy making the payments.

Mr Mortgage,one of my female bank mangers used to suggest to me what we would put on my form.I used to just nod and agree.
Naturally we both knew a little cosmetics would go along way.

That's another thing personally I've found female managers more obliging and willing to be creative shall we say.
This could be just my experience.


----------



## Guest (Jan 15, 2006)

Shelly said:


> That's another thing personally I've found female managers more obliging and willing to be creative shall we say.
> This could be just my experience.


Me too.


----------



## jc (Aug 10, 2004)

thanks for the advice folks

ive tried all of the usual avenues but due to being unemployed and earning less than 6 thousand a year it is a deffinate no no ..... the only thing i could do is lie but it seems that they want to see your last 3 payment slips plus if i do find myself missing payments and ending up in court im sure to be in the poo


----------



## Guest (Jan 18, 2006)

JC please be careful with any offer that seems to good to be true because chances are that it is; I don't know if it's the same in the UK but here a CC company can change your interest rate at any time even if you were "guranteed" a lower interest or no interest. Since you're unemployed I don't see how you could get a new line of credit either from a CC card company or a bank, particularly if you have no assets. At this point my advice would be to try to maintain your credit. Maintaining a good credit is more important than saving on interest rates in the long run. I hope this works out. If I were in your shoes I would continue hounding the company you're with for a lower rate.


----------

