Small short term loan needed - any advice?

neil_s

Hi all, I'm new to this great forum, so be gentle!

I'm 18 and currently finishing my A Level exams and working for Sainsburys.

Basically I drive to college and work, and my clutch has given up the ghost. This will cost me £300 to repair. I am doing my exams and am on annual leave at the moment, so overtime is impossible, however after June I will be working full time so repayment would be be a problem in the slightest.

I have applied to my bank (HSBC), but I do not meet their credit scoring requirements. As far as credit history goes, I have had an Orange phone direct debit since september (always paid on time), and have had a Vanquis (yes, I know :rolleyes:) subprime credit card for three months, always paid off in full at the end of each month. I also have unmissed direct debits for my car's warranty and gym.

Can anyone suggest a way to get this money and pay it back ASAP, given my age and credit history? I really would want to replace the clutch this month as opposed to the end of June to prevent gearbox damage and an even bigger bill. Even if it meant borrowing more than I need to then sticking the rest in an ISA I wouldn't be objectionable.

Oh, and please don't give me a lecture on how bad a habit debt is! I have just finished a thesis on the dangers of wholesale money markets :eek:

posted_2

Family????

neil_s

posted wrote: »

Family????

They've just paid for my exams etc and a new boiler, so although they're far from struggling I don't want to burden my parents superfluously.

I know a loan from family is far preferable to doing anything official, but this is something that will be easily affordable as I have been offered a supervisor's position at work. If possible I would want to do this independenly.

posted_2

If you ask them for a short term loan to tide you over, and offer to pay them a couple of percent interest, it's not a handout, and preferable for you, and probably for them, to a larger loan, (assuming you could get one).

Alternatively, zopa maybe, sell something, or live with the bus or a dodgy clutch for a couple of months. Do you have an overdraft facility?

neil_s

posted wrote: »

If you ask them for a short term loan to tide you over, and offer to pay them a couple of percent interest, it's not a handout, and preferable for you, and probably for them, to a larger loan, (assuming you could get one).

Alternatively, zopa maybe, sell something, or live with the bus or a dodgy clutch for a couple of months. Do you have an overdraft facility?

I haven't been offered an overdraft with my bank.

Just applied online with FLM Loans (presumably a subprime lender) and was given a provisional offer for £500 over 12 months at 42.6% (total cost £103). This seems a bit steep, but predictable. Would this £103 be the full cost of the loan?

TBH I would prefer to pay for this on my own, without parental assistance. It would be cheaper to pay my parents back, but why should they suffer the short term opportunity cost for my problem, if I can indeed to pay over a small period of time? I am sensible with my finances, I've never let myself get into debt (i.e. I saved for my car as opposed to paying bit by bit), and the only reason I have a credit card is in case I run out of petrol just before payday. However this work needs to be carried out ASAP to prevent further damage and a bigger bill.

Am I right in thinking that, assuming I did not miss any payments, this would improve my long term credit score?

posted_2

If you pay your parents anything like a 42.6% apr, they wouldn't be suffering, they'd be laughing. Those loans requires a guarantor (parents), 42.6 is typical, not actual.

Time is the best way to improve credit scores, not massive apr debt.

Why do parents pay for a levels?

jd87

posted wrote: »

If you pay your parents anything like a 42.6% apr, they wouldn't be suffering, they'd be laughing.

Jeez he said he doesn't want to get his parents involved and that's understandable...

haven't been offered an overdraft with my bank.

Have you asked for one?

Just applied online with FLM Loans (presumably a subprime lender) and was given a provisional offer for £500 over 12 months at 42.6% (total cost £103). This seems a bit steep, but predictable. Would this £103 be the full cost of the loan?

Something doesn't add up there. 42.6% of £500 is £213, not £103. Maybe it's a fee of £103, and then there is the £213 interest on top of that. Best avoid it. Try these things first:

1. Ask your bank(s) for an overdraft.
2. Apply for another credit card - use the moneysupermarket smart search facility.
3. Look into credit unions.
4. Ask vanquis if they will increase your credit limit.

All options have to be better than the dodgy loan company.

posted_2

Look up apr and flat rate

theshadow

moneysupermarket smart search facility

Where is this please ?

Emmzi

you have a vanquis c card with a limit and it has just been repaid in full.

That looks like an naswer to me.

StuTheDon

neil_s wrote: »

Hi all, I'm new to this great forum, so be gentle!

I'm 18 and currently finishing my A Level exams and working for Sainsburys.

Basically I drive to college and work, and my clutch has given up the ghost. This will cost me £300 to repair. I am doing my exams and am on annual leave at the moment, so overtime is impossible, however after June I will be working full time so repayment would be be a problem in the slightest.

I have applied to my bank (HSBC), but I do not meet their credit scoring requirements. As far as credit history goes, I have had an Orange phone direct debit since september (always paid on time), and have had a Vanquis (yes, I know :rolleyes:) subprime credit card for three months, always paid off in full at the end of each month. I also have unmissed direct debits for my car's warranty and gym.

Can anyone suggest a way to get this money and pay it back ASAP, given my age and credit history? I really would want to replace the clutch this month as opposed to the end of June to prevent gearbox damage and an even bigger bill. Even if it meant borrowing more than I need to then sticking the rest in an ISA I wouldn't be objectionable.

Oh, and please don't give me a lecture on how bad a habit debt is! I have just finished a thesis on the dangers of wholesale money markets :eek:

Neil - do you have anything you could flog on EBAY to make up the 300? People will pay for anything at the moment and any junk you have sitting at the bottom of your wardrobe might be worth a bit. We had a clear out recently and raised about 400 quid - someone even bought my wife's old maternity clothes.

Just an idea...