Loan Advice

chrism_scotland

I'm looking for a loan of around £4000 - £5000 to clear off my credit cards and overdraft accrued as a student.
My credit rating is not perfect Ive been late with a couple of Barclaycard payments over the last 3 years but Im a good payer otherwise.
I've also cleared off a storecard and completed paying an HP agreement for a tv.
I was just wondering what my chances of getting a loan via a High Street bank like HBOS or RBS rather than Having to pay huge fees via a loan firm?

CLAPTON

depends upon your circumstances ..like income, electoral roll, job etc

why do you need a loan... can't you just pay of the CC and OD in the normal way?

chrism_scotland

CLAPTON wrote: »

depends upon your circumstances ..like income, electoral roll, job etc

why do you need a loan... can't you just pay of the CC and OD in the normal way?

I could I just feel it would be easier and more manageable to be paying off 1 loan rather than 3 or 4 separate payments each month.

StuTheDon

Hi Chris,

Even with a few late payments, this is likely to have affected your score. What you do not want is to start racking up a large number of applications that are refused as this also affects your credit score.

Best bet is to approach the bank you are with now for your current account - if they dont accept you then it is very unlikely other High Street lenders will.

Lots of people here will tell you consolidation (which is what you are approaching) rarely works well. You need to look at why you got into debt in the first place and address that. In all likelyhood it will be cheaper if you pay off the cards and OD first, focusing on the highest APR first.

Stuart

BenL

I thought i had remembered Martins advice on this one, its in this article

http://www.moneysavingexpert.com/loans/cheap-personal-loans

"
Q. Should I get a consolidation loan to put all my debts into one big pot?

A. This is the most common question I’m asked about loans, and let me be honest, it does fill me with despair. Consolidating is never an aim in its own right. In fact, it’s often a disaster waiting to happen. If you have a lot of small loans or credit cards with debts on, the primary aim should be to pay them off as quickly as you can at the lowest possible rate.
The reason I’m so frequently asked this is that consolidation loan providers have spent countless millions trying to push the public’s confusion over these deals to make them seem attractive, often the key claim is they can save you money by reducing your outgoings to a “manageable” level using just “one single monthly payment”.
Yet to do this, consolidation loans stretch your borrowing over a longer period, maybe 15, 20 or even 25 years and that means the amount you pay back is going to be huge. A £10,000 loan on a high street credit card at a horrid 18% costs £5,240 paid off in five years, many think shifting it to a considation loan at half the rate 9% is cheaper, but as its spread over 25 years, the actual cost is £15,200 which is nearly three times more.
Worse still, many consolidation loans are actually secured loans and thus you pay more, for longer, and are risking your home. The key aim is to cut the interest costs of your debt, whether that’s on one loan or twenty two and pay it off as quickly as possible."


The marketing people have you believing it will be easier, it will probably cost you more and be over a longer term than if you focussed yourself to get through each debt one at a time.

Keep up the minimum payments on all debts and plough any available money into the highest apr debt.

ducky87

hi, i have 2 cc's and 2 loans, i have just started a new job and so will be able to pay my credit cards off fairly quickly. but the loans i have are over a fixed term so cannot pay off larger sums every month. can i pay off a loan with a credit card so i can then get rid of the loan and then be able to pay off the credit cards quicker?