Need a small loan, but need to spread the payments more than 1 month.

suregena

Here's the details:

We've booked a vacation for this summer. We had some unexpected expenses which through our saving for our hotel(s) off so might fall just short of what we need before we leave the end of June.

I currently take home about £690 or so after childcare vouchers are taken out (I work for the NHS--30.5 hours per week.)

My husband most likely has a low credit score. Not only that, but he's got a couple loans he's paying off from years ago before we got married. It would need to be me to apply for one.

I've been working on my credit score and have looked at mine at three different companies (callcredit, Equifax, and Experian) and have brought my credit score up from poor to fair (last I looked I was 751 in my score.)

My current debts are:

-£800 overdraft with my HSBC bank.
-£1,200 credit card (never missed a payment and always pay over the minimum payment.)
-£75.05 Very credit account (paying that off over three months--that is new--within this month. Only bought one thing, don't really plan on using it much. There is a £500 credit limit on it, though, if that matters.)


How likely is it that I can get a small loan (less than £200) that I can pay off more than in just 1 month? 3 months is totally doable, but I doubt that sort of payment option exists. So what is the best option for me, and is it even possible to be accepted for a loan with my current debts (which I have no bad history with.)

The past year, my only trouble on my credit report (1 missed payment) was caused from organizing my return to work from maternity leave while I was back in the US for over three months due to bereavement, and trying to organize the return long distance, and my boss not informing my payroll the right information of when I intended to return and I missed out on a paycheck that took the whole month to sort out. It was so very, very frustrating because it put me in a position that I never needed to be in, so now that is the only mark on my credit report (missed my mobile phone payment--that was it.) Other than that, I always, always pay my bills.

My credit score is no doubt where it is (despite being fair) because 1) I have a limited history in the UK as I am American and moved here the start of 2007, 2) probably having the overdraft, credit card, and mobile phone might be considered too many credit accounts? Not sure., and 3) I am NOT on the electoral roll as I am not legally allowed to vote as I am merely a permanent resident and not a UK citizen (however all three of the big credit report companies have this as a notice of correction now on my report so anyone looking at my report is aware of this.)

So, after that ramble (which I hope provides sufficient detail)--what are the best options out there for me? I don't want to fall into a scam, and I hardly think another credit card would be an option (nor not really something I'd want to do.) For one, because I only probably make about £12,000 per year, and two, I already have a credit card though it's not got much room on it at the moment. My husband makes much more than me, but he is currently paying his debts off from dumb decisions he made in the past. I'm the only one with the *mostly* clean history.

I was thinking about looking at my local credit union for a direct loan but I think they do take into account the reason you need the loan for. Mine sounds silly--to be able to pay for the hotel rooms we booked ages ago. Pft, how ridiculous does THAT sound?!
We have half of the money for them saved (used to have it all) but with the holiday quickly approaching and having that surprise expense come up recently, we had to dip into our saved funds. Now we're missing a portion and hardly have the time to save it back up again! Ahhhhhg.

Life always throws you a surprise to potentially mess up your pre-planned holiday. :mad:

Sooo... if you read all of that, advice/suggestions?

Dave101t

Have you tried frank o'nasty's cash quick enterprises?

suregena

What-huh? I've never heard of that. Enlighten me?

paddyrg

If you can't borrow such a low amount from family, try the peer to peer lenders. Of the three I know about, ratesetter won't touch you without a perfect record, yes-secure has higher rates, but zopa may work for you - they accept people with lower records than ratesetter, but more importantly for you they have a listings section where you can make your case as a direct appeal to lenders. I would be surprised if you don't get offers at a decent rate, although I don't know what the fees will be like on such a small loan.

Or - why not ask HR at your work if you can have a small advance on salary? Much much cheaper.

Edit - or extend the overdraft? Interest much higher, but no fees and you can overpat fast.

suregena

I thought they only want good/excellent credit ratings (at least from what I read) and a higher salary?

I could probably pay it in a month, I suppose, but it'd be stretching it. Don't know. I know it isn't THAT big of an amount, but, oof. It's still a little headache.

We leave June 29th so trying to figure it out now. I want to avoid applying to something to only get denied or not accepted and then have a ding on my credit report since I've been working on it.

Would something like Vanquis be a completely dumb thing to do (in terms of credit cards)?

talana

How likely is it that I can get a small loan (less than £200) that I can pay off more than in just 1 month?

- borrow from family
- flog something
- pawn something
- salary advance

Zopa will be a non-starter I fear (£1000 minimum for one thing)

suregena

Oh, and about family: all of my family are in the US (so a horrible exchange rate compared to the pound) and, of course, the economy in the US is so bad and a lot of my family are actually bankrupt! Just messy over there. Just awful.

"Family" here, in terms of my husband's family, are disjointed and not close. His mother is a pensioner who is now a widow so really would be unable to short-term help us.
I thought I would ask here since you all seem like such a knowledgeable bunch on all things money! :cool:

Consumerist

Generally, it's not worthwhile for mainstream banks to offer loans for such small amounts.

One option you might want to consider is to apply for a credit-repair card (e.g. Vanquis). The interest rate is horendous but no worse, over the short term, than pay-day loans.

Make sure you pay it off as soon as you return from holiday to minimise interest charges.

suregena

talana wrote: »

- borrow from family
- flog something
- pawn something
- salary advance

Zopa will be a non-starter I fear (£1000 minimum for one thing)

Hah, oh we're definitely trying to flog! eBay has so far got me a whopping £8. Going to list more things this weekend but, ha, probably won't fetch all that much.

Just seeing. I'm sure we'll figure something out.

Wouldn't a salary advance just give me my salary early and then I'd have to pay it all back on my next salary, which would just take all of my money that month away and then I'd just be without money? Or is that just a fancy word for a small loan, aka wonga, paydayUK, and so on?

In terms of those short term small loan companies, who are the most reputable? I have used paydayUK on one occasion but I fall just under their monthly income threshold these days (I think it's £750... but since I get childcare vouchers taken out, I technically get less deposited. Unless that doesn't count and it's more to do with your salary.)

suregena

Consumerist wrote: »

Generally, it's not worthwhile for mainstream banks to offer loans for such small amounts.

One option you might want to consider is to apply for a credit-repair card (e.g. Vanquis). The interest rate is horendous but no worse, over the short term, than pay-day loans.

Make sure you pay it off as soon as you return from holiday to minimise interest charges.

What is their acceptance rate? I have considered that, despite really not wanting to apply for a second credit card. I really have no need for raking up more debt (so it would be paid off immediately and probably cut up!) because we're on top of our finances, it's just this one thing that's dug into our little holiday savings and existing credit just isn't enough to cover. Oof!

Consumerist

suregena wrote: »

I really have no need for raking up more debt . . .

Sorry, I must have misunderstood your question.