Loan

[redsquare008]

I am coming to the end of a loan that I took out five years ago in order to consolidate my debts. Unfortunately, since then, I have managed to gain a couple more debts and when this loan ends I am keen to get another one to finally sort out my finances for good (yes, I have well and truly learnt this time!) and although my credit rating is gradually improving, it still isn't great! - Does anyone know or have any experience to suggest that the bank may give me another loan based on the fact that I have successfully repaid this one, not missing a single payment in the whole five years? Advice would be great appreciated!

[Kathyan]

Even though you have paid of this loan without missing a payment, it's your credit rating that they will look at. If you have a poor credit rating then you won't get another loan. I've always thought this to be wrong as they don't look at the 'good bits' only the bad!

[Hazel104]

Rather than consolidate, use the money you’ll have spare to increase the amounts you are paying on the other debts.
You can either split the amount between them or aim to pay off the smallest first, and then once that’s paid use that amount to pay the next debt.

I have done this and now have only one debt left, I will be completely debt free by next Jan!

[bushbaby_de]

Before your current loan ends you could ask your loan provider if they would give you a further advance and add it to the loan. Not all providers do this but if yours offers it you may well find your older loan has a better interest rate than those currently on offer anyway.

[Apayday]

Why don’t you go for debt consolidation, you can also get competitive rate of interest in that.