What type of loans am I entitled to?

chr1sbean

Hiya, I have had a turbulent few months with the breakdown of my relationship and needing to move back into my parents for several months and getting seriously demoralised about being on JSA.

Things have drastically improved now and things seem to be looking good for me! I have had the offer of a job in Surrey working in a school and I am really looking forward to it, but because I have been on JSA from october to start of feb, and im currently temping on what is just above minimum wage, I have absolutely no savings to fund the move from Telford to Surrey.

I was just wondering if people knew what type of loans would be available to me?

Someone suggested the social fund, but with living expenses for a months work in hand, and a deposit on a room (I'm pretty sure I wont be able to get a council property in such a short space of time since my job should start end of march) plus a months rent in advance im guessing that I'm going to need a loan of at least £1000 and I dont know if social fund loans go that high or if even I would be entitled to get the loan.

I dot know what my other options would be, I have a poor credit history in the past as barclays offered me loans when i was a stupid 18 yo kids and i took them and basically drank them away at the time, and then struggled to pay and ended up with 2 ccjs. This was about 10 years ago now, and my credit history has been perfect since then so would a bank be willing to offer me a loan or would I have problems due to previous ccj's? 1 is settled by the way, and the other im still paying!

I assume that if I couldn't get aloan with a bank then there is absoluteky no chance of an overdraft with my bank.

I really wouldn't want to use the doorstep loan companies as I have no doubt they would be willing to lend the cash, but they would also kill me on the repayments for it! But if the above options arent available then I have no idea where to turn to next!

Its a good job, with a decent pay and excellent career prospects but I am really stressing out about accumulating enough cash to move down there in time!

Anyone have any answers or ideas?!

dmg24

The only SF loan that would be applicable is a Budgeting Loan, but you would need to be on income based benefits for twenty six weeks before applying for one so you will not be eligible.

sulkisu

If you haven't already done so, I would start by checking your credit file with Equifax or Experian. Defaults and CCJs 'drop off' your credit report after 6 years. As your money problems date back to 10 years ago, assuming there have been no problems since then, you should have a pretty good credit rating by now. If that is the case, with a firm job offer and proof of your future income, you should be able to secure an overdraft or loan with your current bank. If they won't consider you, try another bank.

sulkisu

I have just noticed that you are still paying one CCJ, which might be a problem. Depending on the amount left to pay, it might be worth having a conversation with your bank about a possible overdraft - it would need to be a conversation though, as opposed to an automated online application, so that you can explain the circumstances.

Alternatively several MSErs have mentioned Zopa, some are Zopa lenders. I should add that I know absolutely nothing about the pros and cons of a Zopa loan, so please don't take this as a dead-cert recommendation, just an option that you might want to consider.

chr1sbean

Thanks for the help so far....basically to summarise - I can pretty much rule out any possibility of a social fund loan? Their website is awful and makes little clear!!

Phone up a make an appointment with the bank now I guess, but face to face appointment how does that work? Will they attempt to do a loan if they are happy with the circumstances, and would it still be through an automated service or would it be "pushed through" by a human?

Oh and are there any proper websites for getting a free repost on my credit rating? I did a qucik search and came up with about two dozen different websites!

sulkisu

It depends who you bank with. But in my case (I had terrible credit, CCJs, defaults etc) I banked with HSBC and Co-operative. I had basic bank accounts with no credit facilities. I went in to Co-operative one day and managed to speak to one of the personal bankers that they have floating around. They usually approach you wanting to sell you something. I explained my situation, not just the debts etc, but more importantly how they had arisen. I had been seriously ill some years before, was unable to work and financially, just went into a downward sprial which lasted many years. I was now earning a very good wage, had paid off my debts and had had no new credit for years (mainy because I kept getting refused). We completed an application for a standard bank account, and when the computer said no, the banker simply overode it. I wondered if the same would work in HSBC, and it did. We talked, I explained and then asked to apply for a full account. The same thing happened; the computer said no, but the banker overrode it. I now have a full current account with £500 overdraft facility and a credit card with a £3000 limit. This was after years of being turned down for everything - I couldn't even get a catalogue. It might not work for everyone, but it is definitely worth a try. I didn't pre-book either appointment, I just went into my local branches (first thing in the morning, when they are at their quietest).

As for credit reports, I would recommend www.creditexpert.co.uk and www.equifax.co.uk.

chr1sbean

Well I've checked with creditexpert and it seems that I am squeaky clean. My CCJ's arent showing up as they are older than 6 years old, but like i said I had grown up quickly and have been very good financially since then! I NEVER get into debt now....cept now when I really need the pennies to move!

What I am extremely worried about though is that it hasnt got me showing on the electoral roll since 1999, but im hoping thats because I had to add my further addresses after I had joined the site as I have had 5 in the last 4 years as we kept upgrading house and then the relationship fell apart so I moved again. So im hoping thats just the website catching up as I have definately voted all the times ive been able to!

Is there anyway to get to see your actual score for free?

chr1sbean

okay I'm really cross because I've just applied for a loan through zopa and i got refused and now thats going to sit on my credit check!?

I dont gettit, just this morning I ordered a new contract mobile phone and had absolutely no problems at all in being able to get that!

I went and checked my credit report and there is nothing on there at all! The previous ccj's are not showing up, and ive had perfect financial stability since. Does the fact that I am starting with an employer make them refuse me?

I applied for a 1,500 loan over 36 months as it is literally just to get me down to surrey, pay for the deposit and months rent in advance and a little extra to help me live through my month in hand that I shall need to work! I would have even done it over 24 months if it let me pick that option as the repayments were a toddle for my situation!

Quite cross at tha website. The questions I answered didn't even feel sufficient, After entering my employent details there was no mentioning that the nex thing that would be done is the credit check!

So if I've been turned down by that, surely I've got no hope of being able to raise the cash?!

Now feeling very very anxious as this is an excellent job with really good prospects that I will be moving for but if I cant raise the cash.......

jamesd

Zopa uses only a quotation search until someone is accepted so only a quotation search would show up, if anything, on your credit record. That shouldn't have any effect on other applications. About half of the population can get as far as a personal rate quote from Zopa and move on to the next stage of the application process. 80-90% of people who move on are also turned down, the percentage varying a bit based on the market they fall into and other factors.

Zopa pretty much automatically turns down people with no credit history for the Zopa Markets, though less so for Listings. They turned me down in the Markets because their normal credit reference agency didn't have much information about me. They do this because there's not enough information to form an opinion about whether debts wold be repaid well or not. Bad for those who are careful, but that's the reason.

Recent job changes and address changes can also make it hard to get a loan via Zopa. More so in your case if a phone call to your prospective employer wouldn't confirm that you work there yet.

You might try one of the 0% credit card deals that offer 0% for 15 months with a fee from 2-4% and which let that be used for a balance transfer from a current account (which pays cash into your current account like a loan). Those are normally for those with a good credit score but your lack of negative visible information might be sufficient to get one. Virgin or Halifax tend to provide relatively high credit limits.

Declaration of interest: I both have loans taken out via Zopa and have lending and lending offers via Zopa. There's currently a small chance that my lending offers might end up being used.

inmypocketnottheirs

Getting a mobile phone on contract will also mean that a credit search will show on your file.

chr1sbean

Yeah, but I thought that it was only excessive searches or failed searches that made a difference?

As I plan to only be renting a room the purchase of a mobile on contract was pretty essential since I shant have access to a landline, and it's going to be cheaper than paying to top up constantly! So not a frivilous thing in my opinion....well it would have been if I went for a daft ultra modern phone!

Spoken to my bank this morning, and lo and behold they turned me down, spoken to credit unions and they wil only lend to people living and working in my area. There isn't one to the area I'm moving to.

The banker suggested a crisis loan but from what I understand that doesnt cover rent or deposits! I've got no chance of the SF because the job centre recommeneded i go and work for a temping agency whilst looking for fulltime work - so thats been scuppered!

I know I wont get the credit card if I wont get the loan, because I have had a few addresses in the last few years - my eldest son has a disability and before i parted from my ex we needed to keep moving as the schools he was going to were not helping him at all. But it doesnt matter the reasons, the bank just sees that and then uh-uh!

So as far as I can see that just leaves doorstep loan people with like 400% loans or whatever as my only realistic option ino moving down there to start this job!

I could cry