Loan Advice Needed

pippilulu_2

Hello.

I am a newbie and hoped to get some loan advice. I am looking to borrow 5k but am not sure the best way to do it. The issue being my credit history is only rated as fair. I have never had a loan or a credit card before nor had any issues where i have missed repayments on my phone bill or anything like that. I know the fact i dont have credit goes against me. My own bank wont give me a loan as they say I use my overdraft too regularly. My overdraft is only a small amount- nothing huge and i generally have the funda available to clear it.

I moved to the UK from Ireland 3.5 years ago - have been in full time employment since i have been here earning over 40k a year plus bonus. i have an outstanding loan in ireland (this doesnt show on credit history here) which i pay off monthly however i have to make monthly transfers to ireland to pay this which the bank charges me for every time and its making it quite expensive plus i lose money on the exchange rates. It would be ideal to take a loan here to clear it and to also have a smallish loan showing on my credit history. However as my credit score is only fair the only options i seem to get on searches are for loans with massive APR. I tried to apply last year for some loans and got rejected- this was more than 6 months ago so the searches on my credit score should have disappeared now. Anybody have any ideas for what i should look to do? i dont own a house here.

opinions4u

1) Get on the voters roll.

2) Stop applying for credit.

3) Stop using your overdraft and operate your bank account in credit.

4) Pay all your bills in full and on time.

5) Wait for a few months then apply again.

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As for the Irish loan, is there any way you can get ahead on this? Send two months' payments at a time perhaps? This will reduce the impact of foreign exchange costs and bank fees.

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There is a plan B. Why not save up the £5k out of your £40k income?

pippilulu_2

thanks for replying.

I am on the voters roll and i never miss a payment on a bill. I havent applied for credit in over 6 months- my question is what the best way of getting credit now would be without blindly applying for it and getting rejected. Regarding the overdraft on my account- yes i agree i need to stop using it but surely using 100 or 200 GBP shouldnt stop me getting a loan when its always repaid?

Regarding my salary- I live in London- after 40 % tax, rent and a mortgage on a house back in Ireland there does not be a whole lot left to save every month. If i could put aside any money i would have put it against the loan as it would be pretty wasteful saving it.

BoGoF

pippilulu wrote: »

yes i agree i need to stop using it but surely using 100 or 200 GBP shouldnt stop me getting a loan when its always repaid?

But regular use of an overdraft suggests to a lender that your outgoings exceed your income

pippilulu_2

I understand. I suppose as i am currently paying x amount a month to Ireland as a loan repayment- repayments which I have never missed, I know I can afford to repay the loan here as it would be just replacing the repayments I pay already. Although obviously applying online for a loan will not make that apparent to a lender.