Taking out a (non student)

hebangsthedrums

A bit of advice from the board please:

I am in my second year at uni and am looking at taking out a loan with hsbc as I am short of cash and was looking for any advice. I'll give you my scenario

I do not have a job and do not intend to get one as my degree is text heavy so i have a lot of reading to do and i did this last year and it stopped me from doing other things (football/squash teams, film society), and i thought uni is supposede to be best time etc - i want to do as much as possible. i will however try to do temping over holidays but obviously there is no guarantee for availability.

I receive 3400 loan in 3 parts abd pay all tuition fees, my rent etc is 265 total. and my car insurance is paid by my parents.

I have a student acct with hsbc with 550 overdraft (they said the figures quoted were subject to status and as i was converting my acct the computer said no to 1250 and 550 is what i get, which annoys me but hey), which is pretty much at the limit.

I am owed 350ish from summer work whioch the company is taking ages to pay but i will get 20th this month and am owed 250 which i lent to a desperate friend a couple of months ago.

My parents dont really have the means to give/lend me money and i dont want to worry them by asking.

I was looking at loaning around 1500 from hsbc which on the internet quoted at about 60 a month back over 30 months i think 16.9% apr and total repayable 1900ish.

Is this a good deal? Is it worth looking at other banks and would i need to bank with them to get a loan?

also is there any way i can get my overdraft limit up to the full advertised amount.they said past history ruled me out but i explained last year i only went in the red as my wages went in 2 days after my rent went out and i was pretty good with sums so earned pretty much a balance with what i spent (discounting my loan). the lady said that didnt really come into the equation though

sorry for being longwinded and for a lack of clarity,but any replies will be much appreciated

BWZN93

Go and apply in your student finance office for a hardship loan - you can get extra money. You need to provide the last three months bankstatements and have taken the full amount of loan available to you. Beware they may say you must learn to budget etc if they see lots of bars and pubs on your statements, but if they feel you dont have enough to live on then you may get extra.

I did it every year throughout my degree as I only had my loan to live on and that would only cover my rent (it was £280pcm in 2002). Its one that you dont have to pay back either - you will probably be turned down for a regular bank loan if im honest and working or the Student finance people are probably the only way for you.

Good Luck

Tim_L

16.9% is an absolutely horrendously bad rate. It's credit card level, not loan level. You would normally expect something under 10% for an unsecured loan.When applying for loans, never focus on the repayment amount, but always on the APR. Unless there's something else in your history you're not explaining here, banks should be queuing up for your custom as you'll be a decent prospect going forward. HSBC are probably the worst choice you could make for a loan as they have your business already.

It should be possible to get something much lower than the deal you have been quoted by shopping around but I wouldn't be rushing to rack up further debt in your position as it *will* come back to haunt you.

A £550 overdraft is really nothing at all in the grand scheme of things, and the first thing I'd do is to go around some other banks with your story - don't tell it in the way you've done it here, but emphasise that you have kept within your means so far, have managed your money well, and are being jerked around by your current bank at a time when you need flexibility moving forward (all students are going to get into some debt, it's inevitable and the banks are well aware of this). You should also look at some of the cash inducements available for opening current accounts, many of whom offer 12 months interest free overdrafts (Lloyds for example), but I'm not sure whether students are eligible. For the sake of a day trawling around the Internet or visiting branches, this is a good investment. Also look at the current account board here - there's no reason to restrict yourself to student deals, but if there are good student inducements which are worth real money (i.e. not the free napster download type), then you should take full advantage.

You are I'm afraid also going to have to meet the real world truth that you have to cut your cloth according to your means. While I have some sympathy with the idea you need time for leisure activities - most people in full time employment would like this too! - if you can't afford to do this, it's time to get some sort of work (sorry to be frank about this, but it needs to be said). Finding time for work is as much about learning time management as giving up necessities (reading for your course) or leisure activities (which you can do at other times). It's almost certain that others in your peer group are working, have active social lives, and are managing to read for their courses, and you have to weed out what you are telling yourself is possible from what is actually possible - it's very easy indeed to make excuses for and to yourself. Look for these people and talk to them about how they fit things in.

Ultimately having some sort of a job will also help you when looking for full time employment later as your CV will look a bit more rounded than if all you can say on it is you were a member of such and such a society, and it will certainly help you when asking for overdrafts and so on. There's seasonal work - the classic is supermarkets at Christmas - if you don't want to be tied down to a longer term arrangement.

There are some things you can do to generate a fair amount of cash without much effort - have a look in particular at the 'Easy free money through matched betting' thread on the gambling loophole board here (of which I'm the mini-mod). If you have an internet connection and a debit card you can generate a few hundred pounds pretty much risk free over a few weeks. See also Donglemouse's diary on the same board for examples of what you can achieve. Note that this is *not* gambling - a genuine road to ruin - but is about using intro offers to make money without risking your own.

It's Monday morning, and I'm grumpy, but I would say that someone who borrows £250 from someone who is themselves in financial straits and then doesn't pay it back would not qualify as a friend in my book. The effects of this may well be to push *you* over the edge, and you're already talking about taking out a loan which will cost *you* £400 in interest rates so the costs are very tangible. You need to get this money repaid, and if it's not possible as a lump sum then make an arrangement to pay back a regular amount - if this person is spending money on leisure activities, then every time he or she dips their hand into their pocket to pay for a round of drinks (for example) it is costing *you* money. This is hardly fair.

If at the end of all this you still need a loan then spend at least a weekend shopping around for the absolutely best rate, and learn the ropes before signing up (they will probably try to reel you in with a promise of a cheque today if you sign the forms and limited availability deals, but you will get better deals if you refuse).

Quiet_One

Toatally agree with what Tim said, Don't be scared to change banks!!!!! 16.9% APR is VERY BAD ! I can find a loan of £1500 with Northern Rock at 5.7% APR , so that 36 monthly payments of £45.33 Total amount repayable = £1,631.88 over 3 years.

https://www.northernrock.co.uk


Qualifying Criteria:

You must live in England, Scotland or Wales
You must not be unemployed
You are required to have a current account
You must not have been declined for credit in the last 6 months

Only thing is, as you say you are not employed it does state it requires you to be employed, I understand the pressures of uni work, but is there absolutely no chance of even working a few evenings at a bar or somthing to cover this? This would help you enormously in terms of securing a cheaper loan. If not it might be worth asking your parents to consider taking this loan in their name and you paying them the installments each month.

https://www.moneybackbank.co.uk also matches Northern Rock's rate of 5.7% APR for £1500 loan over 3 years.

Since your student overdraft is not the maximum, It might be worth trying.....to open a 2nd student account, I Know you aren't supposed to with some accounts, but maybe worth a try applying anyway... try Llyods TSB and others, I know Llyods for me last year was a nice £1500, 0% APR overdraft for 3 years.

hebangsthedrums

Tim, JL and the quiet one thanks for your replies


As i mentioned in my original post a job is sometjing I will avoid in term time, the simple fact is everything i haver looked at (partiularly bar work) wants a commitment of 16+ hours a week which is too much. if i could work one or 2 eves at a pub i would jump at the chance believe me. i worked a lot during the summer and have had a job since i was 16 and paper rounds before then so i could pay for the things a little oput of mum and dads reach and would like to kick back as it were and live comfortably without working myself into the ground. last year i worked every oither weeekend back home 3-12 which meant i was arriving back at uni 2am - i could have done this this year but decided against it. i would have been a little better financially but i had a horrible combo of car mot,new radiator and new alternator for my car, as well as my loan being delayed as i changed my degree scheme slightly. i do understand there are other people in the same scenario who are working but as i mentioned i have thought it over and unless i absolutely cant avoid it i will just work holidays. (please dont take that as being rude - i do understand your pointof view and appreciate the advice.)

as for the money i lent i lent it before i had the aforementioned car trouble. i was under no pressure to lkend and it was one of my oldest friends. his need was a lot more than mine as i knew i could cope and he would do the same for me.


i think i will look at the northern rock site and may email with any queries. when it talks about credit requests would a student acct application count - i tried to open one with rbos before i converted my hsbc one and they turned me down as i have no credit rating (they suggested getting a credit card - haha)

as for the matched betting tim tbh im pretty confused by the whole thing. also i dont really have the money to play with as aforementioned mine is tied up in money owed to me and 600 in deposits


thanks again for all replies

jr666

i think you should also go back to hsbc and try to extend your OD to the full 1250. if you explained your situation they might be more sympathetic? Also maybe consider the option ofopening another student account. there are some that dont require it to be your only studnet account. in your second year you could get an OD of 1500 which at 0% is somewhat better than the 16.9% HSBC would be charging you.

I dont think you should be pressuring yourself to get a job. you could regret it later when you end up with a 2.2 because you've worked rather than the 2.1 you might have got if you spent those 16 hours a week studying instead.

just a thought.

Savvy_Sue

I'm just wondering how you're going to make the repayments on any loan you take out? Do put some 'contingencies' into your budget: if you need a car then you already know that unexpected expense is almost inevitable! And defaulting on a loan isn't a smart plan.

gizmoleeds

Out of interest, how much do you actually need the car?

Most uni students survive perfectly well without them - universities are always well served by public transport.

It wouldn't surprise me if you actually travelled to uni by public transport anyway if you are in a city as it is much cheaper than parking.

If you didn't have a car that would be one big expense gone, and would also be better for your parents as you have already said they are not rolling in money - paying your insurance might be causing them trouble. If they weren't paying it they might be able to give you a bit more too, perhaps.

worried_and_confused

You should think very carefully before taking on a loan from a bank.

As has already been said, you should be able to get a better student deal (i.e. bigger 0% overdraft than the one you currently have). Also dump the car and cut back on your expenses where possible.

Get a job over the summer 3 months work shoud earn you an extra 2-3k.

Also, approach your students union. Every university has hardship funds available, in the form of extra student loan and possibly grants.

good luck.

brains

I hope I'm not too late, but;

DON'T GET A BANK LOAN

I'm in my first year at Uni, but I worked for a few years before I came here, and for two different banks, they will f**k you over, don't get a loan, 16% is a joke!

There are two options here;

1) Providing your a sensible person, and work it out so that you will be able to pay it back. Just get another student account, just tell them it's your first account, most don't check, even try 2 additional ones if thats what you need. Nat West will give you £1250 0%. Just tell them you used your normal account in first year, but now you're looking to get a student account.

2) Go to your SU and speak to them about a hardship loan as someone already mentioned. Tell them that you're thinking of quitting as you simply can't afford it. They may try and force you into a job, but just explan to them as you have here about all your reading.

Hammer a job over next summer and get some money pal. Get a call centre job, the're bearable for about 8-10 weeks and can pay good, half of that will be !!!!!! easy training too.

Whatever you do, don't get a normal loan!

Karnam

opening another student account isnt an option if you keep with HSBC's student a/c. thier t&c clearly say no other student a/c