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  • FIRST POST
    • Hamilton18
    • By Hamilton18 3rd Jan 18, 5:10 PM
    • 2Posts
    • 0Thanks
    Hamilton18
    Getting a better loan
    • #1
    • 3rd Jan 18, 5:10 PM
    Getting a better loan 3rd Jan 18 at 5:10 PM
    I have a long history of debt, including previous trouble with payday loans etc so my credit history doesnít look pretty. In July 2017, I finally secured a job that pays enough to mean I no longer need to find myself living beyond my means.

    I have a high interest loan that I have held for several years, Iíve never defaulted on a payment but it will be 2021 before I have paid it off and the interest rate is 41% apr. With monthly repayments of £300, I canít afford to increase my monthly repayments to pay it off quicker but I am struggling to find a loan with better terms that will accept me with my history.

    Does anyone have any advice on if there is anything I can do about this? While my history is bad, my current salary and my consistent repayments mean I wonít default. I feel like I am now haunted by my past mistakes when, with the right loan and sensible levels of interest, I could be debt free so much more quickly.
Page 1
    • enjoyyourshoes
    • By enjoyyourshoes 3rd Jan 18, 6:11 PM
    • 955 Posts
    • 1,171 Thanks
    enjoyyourshoes
    • #2
    • 3rd Jan 18, 6:11 PM
    • #2
    • 3rd Jan 18, 6:11 PM
    Firstly check there are no early repayment charges.

    There is a loans eligibility checker on mSE main site, id give that a go

    first

    https://www.moneysavingexpert.com/eligibility/loans-calculator/
    Debt is a symptom, solve the problem.
    • DCFC79
    • By DCFC79 3rd Jan 18, 8:24 PM
    • 30,627 Posts
    • 19,366 Thanks
    DCFC79
    • #3
    • 3rd Jan 18, 8:24 PM
    • #3
    • 3rd Jan 18, 8:24 PM
    A new loan may well be seen as extra by lenders, they will have no idea of your plan to pay off the 41% loan.

    It all depends how much is left to pay off.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • fatbelly
    • By fatbelly 3rd Jan 18, 8:50 PM
    • 11,800 Posts
    • 8,896 Thanks
    fatbelly
    • #4
    • 3rd Jan 18, 8:50 PM
    • #4
    • 3rd Jan 18, 8:50 PM
    Check that the data on your credit file is accurate. That should be plural - there are three Try

    mse credit club
    https://www.clearscore.com/users/signup
    https://www.noddle.co.uk/sign-up

    Also consider a money transfer credit card - there are pre-application checkers for those too.
    • Integroo
    • By Integroo 4th Jan 18, 12:31 PM
    • 15 Posts
    • 6 Thanks
    Integroo
    • #5
    • 4th Jan 18, 12:31 PM
    • #5
    • 4th Jan 18, 12:31 PM
    Try RateSetter (a P2P lender). I don't know how they will view your credit history, but I understand they can give you a firm offer of credit with only a soft hit on your file. I reduced my loan from 6.9% to 4.9% with them when most traditional lenders would either not offer me a loan or would offer me high interest rates (though admittedly this is a different situation).
    • Hamilton18
    • By Hamilton18 4th Jan 18, 6:20 PM
    • 2 Posts
    • 0 Thanks
    Hamilton18
    • #6
    • 4th Jan 18, 6:20 PM
    • #6
    • 4th Jan 18, 6:20 PM
    Yes, thatís the problem. My credit score actually isnít that bad because Iíve been making regular repayments, but the difficulty is that lenders donít think I have any capacity to borrow any more; which I donít want to - I want to replace the existing with a better rate.
    • DCFC79
    • By DCFC79 4th Jan 18, 8:49 PM
    • 30,627 Posts
    • 19,366 Thanks
    DCFC79
    • #7
    • 4th Jan 18, 8:49 PM
    • #7
    • 4th Jan 18, 8:49 PM
    Yes, thatís the problem. My credit score actually isnít that bad because Iíve been making regular repayments, but the difficulty is that lenders donít think I have any capacity to borrow any more; which I donít want to - I want to replace the existing with a better rate.
    Originally posted by Hamilton18
    Well you need to find a lender who you can explain it to, good luck with that.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Fireflyaway
    • By Fireflyaway 5th Jan 18, 8:54 AM
    • 1,463 Posts
    • 1,511 Thanks
    Fireflyaway
    • #8
    • 5th Jan 18, 8:54 AM
    • #8
    • 5th Jan 18, 8:54 AM
    I also had loans and cards but I did default. It was the only way to get out of it. Depends what you are preserving your score for? If you need it then keep up the repayments but if you have no long term plans, maybe entering into an arrangement might be easier?
    Borrowing to clear debt can sometimes mean you don't feel as much pressure and all you do is pay it slower.
    I know what you mean about mistakes not going away! My income is OK now but my score is still really low and I'm worried I might not get a mortgage.
    I'd say see how various choices will impact your future before settling on any particular solution.
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