Bad credit loan- soem advice please!

camuk81

Can I just advise to be very careful, try one of the pre approval site. Do not pay anything for someone to search for a loan but please be warned. I have a bad debt which is calculated daily and applied monthly leading to a shocking amount of interest. My apr is 24.9%.

System

I can certainly understand being desperate for your own place, especially when you've been looking forward to it for such a long time, but in some circumstances you just have to accept that it will take a little longer than you expected. Would you rather get a £5k loan with a ridiculously high interest rate and be paying it off for ages, or find a room to rent while you save up for a couple of months?

Also, you don't necessarily need £5,000 to fund a big move. As someone else on here has said, freecycle/charity shops/friends can provide furniture, and you only need a bare minimum when you're starting out. Get a cheap bed, sofa and chest of drawers, and work on replacing it and buying new stuff once your salary starts coming through. If you've got lots of stuff to move, see if you can find a friend with access to a van (even hiring one isn't that expensive). Your big expense will be a deposit and rent before you're earning - if you've got anything to sell and/or can live incredibly frugally between now and the move, you might be able to save up a fair bit towards that before the time comes.

As has already been said, it might be stressful (and expensive) to find somewhere to live before you've moved anyway, and you'd be much better off looking for the right place once you're local than trying to manage it all long-distance. Don't forget as well that letting agents often ask to see proof of earning to make sure that you'll be able to afford the rent each month, and I don't know if they'll accept your future salary (depending on how big the gap is between graduation and your job starting).

istdp1

Thank you all so much- some really good advice.

I think I do have re-evaluate a little... really my 1st salary isn't until september (month in hand, as per usual), so it was for living expenses between then and now and indeed deposit, months rent in advance, etc. (plus I am currently living in London and although
comparatively ok...still isn't really cheap and need to pay another 2 months rent, before I leave ) and the cost of the actual move as well. The £5,000 is what the bank offered, as I hadn't taken all of the loans, which I could've done previously.

Realistically, I think £3,000 should cover it , there is hospital lodgings, which are reasonable and I can live there for a few months.

I have attentively spoken to a few loan companies (without actually applying) and they seemed willing to loan me the £3,000 on the basis of starting the job in August. I have manged to get an e-mailed letter from the trust's HR department, stating it's a firm offer and the starting salary, etc. which I think helped.

But these are the higher interest companies which some of you mentioned.

@opensomehours thanks for that- I will give sainsbury's a call, you never know and would much prefer to do business with them.

Thanks a lot.

Tixy

Who are the loan companies who seem willing to give you a loan?

First off have you checked if they are lenders or loan brokers (loan brokers will almost always promise they can help and then charge a fee of around £70 and then often ultimately find a payday lender willing to lend £300 at 4000% repayable in a month.)

If they are not brokers have you checked they are legitimate lenders and are not expecting you to provide a guarantor?

If you are in any doubt please post the name of the lender you are going to apply to on here so people can advise you if we've come across them as scammers or dodgy brokers before you hand over your personal details or bank details.

jason1231972

^^ What Tixy says, be very, very wary of anybody taking upfront fees from you in particular, no matter what promises they make (and they will make lots). No loan will materialise. At all. You'll just be bombarded with spam phone calls, texts and emails with yet further promises of a loan (and often further extractions of £70+ fees).

Good career or not, no responsible lender will lend to somebody with no current income (the exceptions being banks and building societies looking to take on a long-term client they hope will take out mortgages and so on in the future - but your credit card default may put you in a difficult position there, and banks are much less prone to 'jump on' students and graduates than they were 5+ years ago).

Irresponsible lenders, of which there are many, may consider you, but the very few who will come up trumps with a loan (payday lenders and so on) will not lend you anything remotely close to the (now) £3k you need. Anyone offering in excess of a few hundred pounds is 99.9% likely to just take you for an expensive fee-based, ghost 'loan' ride.

I don't know much about your profession, but is there any kind of society, union, charity, etc. who helps out soon-to-be medics in need? Any advisory or support services at your university?

dothebartman

Hi OP, Im a Doctor in my third year post qualification. Not being funny, but you can live on-site in hospital accommodation for peanuts (well couple or so hundred quid a month) which covers all bills and furniture (there are strict NHS criteria of the furniture that must be provided(!) plus theres usually loads of food in the mess with endless free toast/cerial/tea coffee!!!), as I'm sure you know the vast vast majority of newly minted Drs live in hospital accommodation so its a really good fun way to make friends quickly and they are also a great support group for the stressful/hard experiences you WILL have in your first year. In my hospital people started moving out after about 6 months, i stuck it out for the whole year and quickly zapped lots of debt as a result! (would of stayed there too if they hadn't turfed me out) Oh and don't worry about being an older chap, i was a 'mature' student and found the kids kept me young! ;-)

When i graduated i was at the absolute limit of loans and credit cards that we all have after such a long and hard degree, so i can totally understand your feelings, but you really don't HAVE to take a loan for thousands of pounds for this transfer into the next part of the job. And although it is nice to start earning a half-decent wage, those first 6 months or so salary get quickly gobbled up by BMA fees, MDU fees, GMC registration and you want to have cash to go enjoy yourself, not pay back a non-essential loan. My advice is to TRY to live like a student for another 6 months. I did and i am now in a very comfortable situation. Just my 2 cents.

istdp1

Once again thanks all for taking your time to give me some advice.

@dothebartman that is really excellent advice, from someone who has been there and I take on board what you're saying:) Indeed the GMC reg is due, that is £95 a lone.

I do have some good news- one of my best friends boyfriend (incidentally I am a woman! But chap is fine!) who is pretty wealthy has offered (I didn't even ask!) to lend me £1,500 (interest free, pay back over the next year or so) which is enough to keep me going, especially as I am taking hospital accommodation now.

So it's all turned out well.

I am so glad I came on here, god knows what mess I could've potentially got myself into- especially these brokers some of you spoke of...

I guess there will always be people to exploit others... but what is really said imo, is how these companies/individuals will take advantage of people who perhaps really need help the most in some cases. They may not be breaking the law, but it is damn immoral.

Thankfully there are forums like this to help people not familar with the [potential] financial minefield.

Thanks again to all:) Have a pleasant weekend.

DCFC79

istdp1 wrote: »

I do have some good news- one of my best friends boyfriend (incidentally I am a woman! But chap is fine!) who is pretty wealthy has offered (I didn't even ask!) to lend me £1,500 (interest free, pay back over the next year or so) which is enough to keep me going, especially as I am taking hospital accommodation now.

So it's all turned out well.

Yes its turned out well but you have the loan from the friend to repay back, im sure you will pay it back but there have been threads on here where money is lent between friends and it gets messy.

System

Well done on choosing to live frugally for a few months and steer clear of dodgy loans! As DCFC says, there are hundreds of posts on this forum about friends lending to friends and it all going wrong. I would suggest you put everything in writing before exchanging money (not sure if it means much in court, but it's better than nothing). This puts you and the friend both in a much better position. If you're unable to pay it back the friend has definite proof that you borrowed it (not saying you'd stiff the friend, but you never know what's around the corner!) If your friend ever decides to ask for it all back straight away, you have proof of agreed terms etc. Both those scenarios might seem unlikely right now, but better safe than sorry.

Lisa00

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