Need a Loan but have Poor Credit - any advice?

Tixy

If you are considering a debt management plan then speak to one of the charities, who will run it for you for free. Not knightsbridge who will charge you fees to set it up and a percentage fee each month.

A charity won't charge you a fee to run a DMP, will give you impartial advice as to whether its appropriate and and will explain the consequences of being in a DMP. Namely it will wreck your credit file as your creditors will default you, you cannot take on any more debt whilst in a DMP (so no £750 loan) and your creditors cannot be forced to freeze interest (although many will if they can see you are paying all you can afford each month and its not as much as the minimum payment).
IMPORTANT - Where to seek professional impartial advice about your debts.

Realistically if you have £8k in debts and are looking for a £9k new loan on a £20k salary even if you had a perfect credit history your would be very unlikely to get one. As the new lender will not beleive you can service all your existing debt and their loan - which is how they look at it whether you intend to consolidate or not,

LucretiaUK

Ok I'll try Penny Post (the only CU near me) for the HGV training fees. Thanks for that, I thought they would only lend to Postal Workers.

Wentworth and other scammers are still texting me telling me my loan is agreed. Pfff...

Looking at CCCS for a DMP, but will that leave me with a bad mark on my credit record? Since they are a charity, they shouldn't charge fees, right? Also I'll have no credit card for up to 5 years! Not a bad thing I hear you cry but still, no safety net is kinda scarey.

BackOnTrack

Make sure you get your fees back from the loan brokers as well, they will keep £5 to cover admin but you should be able to get the rest of the fee returned.

From Wentworth site:

Under Financial Services (Distance Marketing) Regulations 2004 you have a right to cancel your application within 14 days of receiving these terms and conditions and receive repayment of the fee. If you wish to cancel your application, you must write to Wentworth Direct Finance notifying us. In this event the amount will be returned within 30 days of the date on which we receive your written request to cancel your application. You the client may also, at any time, within six months cancel the agreement if you so wish, in this event the brokers fee will be refunded to you within a reasonable time, not exceeding 30 days, from the date of cancellation in writing, minus a £5 admin charge.

Loanfinder should have a similar clause so get writing those letters.

chesky369

You still haven't said how much debt you have.

LucretiaUK

From Penny Post:-

"Hi,
Thank you for your enquiry. Membership of Penny Post Credit Union is open to Royal Mail Group employees in England and Wales. We can only consider loan applications from members."

There are no other CUs in my area. So that's that idea scuppered.

LucretiaUK

chesky369 wrote: »

You still haven't said how much debt you have.

£6750 credit card.
£900 overdraft

That's all. Happy now?

LucretiaUK

BackOnTrack wrote: »

Make sure you get your fees back from the loan brokers as well, they will keep £5 to cover admin but you should be able to get the rest of the fee returned.
Loanfinder should have a similar clause so get writing those letters.

As far as I know, I haven't paid any fees. If I find that I have, very STERN letters will be written!

Gothicfairy

Lucretia

I can't help you with the loan issue but if you want to give me the details of the bike you are trying to sell I could pass that on to my fella who is on all the usual bike sites and knows more then his fair share of hairy arsed bikers and might be able to help.

Tixy

LucretiaUK wrote: »

Looking at CCCS for a DMP, but will that leave me with a bad mark on my credit record? Since they are a charity, they shouldn't charge fees, right? Also I'll have no credit card for up to 5 years! Not a bad thing I hear you cry but still, no safety net is kinda scarey.

In a DMP you pay less than the minimums, which means most of your creditors will issue default notices against you, these stay on for 6years from the date you default. And will make getting credit very difficult within those 6years - but it sounds like you are already in that position anyway.

They won't charge fees at all. You won't have access to credit no, but they'll help you with budgeting and help ensure your income & expenditure statement is at a level you can afford so you shouldn't need credit as all costs should be accounted for. It is a big step and takes some adjusting to but CCCS will advise you if they think its the right option for you.

chesky369

LucretiaUK wrote: »

£6750 credit card.
£900 overdraft

That's all. Happy now?

Not happy or unhappy - but it does kind of make a difference if we're talking about £3k or £30k. I suspect with circa £7k on your income, you're not likely to find anybody willing to lend you the amount you want.