Unable to get a Loan

evku1973

Hi,

I am trying to get an unsecured loan with a low APR but I am unable to get it because I have a default in my credit file. I have negociated with my creditor that they will remove my default from my file if I pay the amount in full.The only problem is that the loan companies that are willing to lend me money are quoting an APR of 20% and more.

Is there a loan company out there that will offer me an unsecure loan for less than 15% APR?????

Or can anyone suggest the best way of getting myself out of this mess.

Cheers

jonesMUFCforever

Do you need to borrow more money or just repay what you owe now?
If it is just to repay the o/s debt why bother to get new loan - come to an agreement about repayments and stick to them until it has been repaid.

Even if you manage to get debt satisfied I think the defaults would still show on your credit files for up to 6 years. This might or not hamper your attempt in getting future credit.
Eric

evku1973

yes I want to pay off all my debt (£ 5000) at once so that it can be removed from my creadit file. But also I would like to borrow another £5000 to purchase a car.

All I wanted to know is if there are any loan companies out there that will give unsecured loans to people with bad credit for an APR that is below 20%?

Debt_Free_Chick

evku

I think you need to think about this some more .... you effectively want to borrow £10,000 - half for a new car and half to swap for your existing debt. So ... you want to double your debt? Are you sure? Do you really need to spend £5k on a car? Many people manage to get a decent car for much, much less than that.

Now, to the loan. In order to get money to pay off your existing loan, you need to apply for a new one. And when you apply for a new one, the lender will see the default on your credit file.

You're stuck in the loop ... there's no way you'll get a good loan, let alone one for £10k, whilst your credit record shows that you have a default on an existing loan with £5k outstanding.

You're only choices are ...

(a) Get a member of your family to help you out i.e. they lend you £5k you pay off the existing loan. Wait until your credit record clears, borrow £10k (if you can get it) and pay back your relative.

or

(b) Forget the car for now and concentrate on paying back the existing loan as quickly as you can. Consider making some sacrifices on "luxuries" and going out, as this will enable you to pay the loan back more quickly.

Once you've don (b), start saving & pay cash for the car as this will enable you to negotiate.

Forget debt - you don't need it ;-)

Malestrom

evku1973 wrote:

All I wanted to know is if there are any loan companies out there that will give unsecured loans to people with bad credit for an APR that is below 20%?

No. Bad Credit = High Risk = High Interest

evku1973

Thanks for the good advice. I will try option one and see how I get on. If not I will have to do it the hard way (option Two)

Cheers