Another newbie loan thread - £1,200

bettingmark

Hi guys,

I need to apply for a loan of £1,200 which i need ASAP to pay outstanding tuitition fees at university.

I would have it paid back in full by November.

My financial situation....

Full Time University Student going into final year.

Never had a student loan and only debt is a £1,000 student overdraft with Halifax.

Have two other student bank accounts but never used them, so no money in them and no transactions ever occured.

Have a part time job, and so far in this tax year have earned £1,900.

I have another source of income for a second job but money doesn't come weekly, but quarterly. My next payment from them is due in November and is around £1,400 - this will be a 3/4 payment, I've already received my first quarter.

I am not in a position were I can apply to my student's union for the hardship fund, nor is there any money around that im entitled to in my current position, hence this loan is my only avenue now.

Would I get rejected on the grounds I'm a student or that I have £1,000 arranged overdraft with my bank?

Thanks.

bettingmark

Also, is Northern Rock my best option?

asandwhen

speak to halifax they may be able to help with a credit card - a credit card would be a better option than a loan because then you wont get tied in if you want to pay it back in november - dont touch northern rock!

BullyCornedBeef

I was recently a student, I was wondering how you payed for your fees without a student loan before? Unfortunately in my experience banks are reluctant to offer personal loans to students.

Anyway,

You say you have two student bank accounts you havent touched and I assume are just 'idle'? Student current accounts come with interest free overdraft facilities. Find out if the combined O/D limit is £1,200.

If that does not work then look at getting a 0% interest on purchases CC to pay your fees with. Remember to check how long the interest free period is so you know how long you have to budget to pay it off in full.

Hope that helps.

bettingmark

fees were previously paid for by my sports club - as they will again this season.

The idle student accounts will not allow an overdraft as i've never put money into them in the first place.

Would halifax allow me to use a credit card that all i need on it is a one off payment of £1,175 on top of the overdraft i already have with them?

A loan seems my only feasible option, and i can 100% pay it back by november/december.

What im intending to do is apply to Northern Rock, for a year loan of £1,200 and pay it back monthly (around £130 p/month) until december, where i'll then pay off the remaining debt. Why did someone suggest avoid them?

Thanks.

bettingmark

BullyCornedBeef wrote:

If that does not work then look at getting a 0% interest on purchases CC to pay your fees with. Remember to check how long the interest free period is so you know how long you have to budget to pay it off in full.

Would this be a better option than a loan (apologies for the naivitity!)

Any suggestions for a company to approach about this option?

BullyCornedBeef

bettingmark wrote:

Would this be a better option than a loan (apologies for the naivitity!)

Any suggestions for a company to approach about this option?

Yes.

If you took out a loan with Northern Rock or anyone, your repayments would include interest and you will pay back more than you borrow - the interest you pay is what keeps banks and lenders' hierarchy eating cucumber sandwiches and drinking champagne!

If you applied for a CC with 0% interest for purchases (I think currently Barclays are the best, but check this site) to pay for your student fees and you intend to pay it all back by November you will only pay back what you borrowed and no interest.

The Barclays CC in question can only be applied for in a branch and is currently 0% for 12 months.

Hope this helps.

bettingmark

Would a company such as barclays allow me to put a transaction of £1,200 on to the card as my first business with them!?

poppy_f1

bettingmark wrote:

Would a company such as barclays allow me to put a transaction of £1,200 on to the card as my first business with them!?

there wouldnt be a problem as long as you were within your credit limit

bettingmark

how will they decide on my credit limit though? There's no point in me signing up for one, if i cant carry out the only transaction i want to use it for.

I wish I just know what the best solution was and fast !

Emmzi

If you have guaranteed income to pay the fees, could you not take documented evidence of this to the university and negotiate?

I've certainly paid uni fees partly by installment, no problem. This seems easier than taking out a loan, if you haven't already tried it.

OR you could take out a student loan, and repay it very early from the income you will get.