Looking for a loan

MoneyMousey

Hi folks,

I appreciate that threads similar to this are posted often, but unfortunately I can't find the answer I'm looking for.

I'm looking for a loan for £4000 to clear some other debts so that there is only one bill leaving my account every month which will enable me to keep good control of my money.

I have a good job and can easily afford the repayments, but the catch is that I have a poor credit rating so I cannot use the conventional lenders. It cannot be secured as I do not own my home and I do not want to have a guarantor, basically because although I could find one, I do not want other people knowing my financial situation.

I have, of course, searched the internet but there is soo much rubbish to trawl through it really is a ballache. Most companies that try to lure you in are only brokers and I've only ever read bad things about them.

So can anyone recommend a reputable loan company that meets my criteria above. A high APR % is not a problem as I can afford the repayments, and I fully understand that as it is my own fault I have a poor credit rating, that a high APR is a consequence of my own actions.

Any advice would be much appreciated.

simon2010

Hi

I am exactly the same boat as you!

I would recommend blackhorse finance if no one will lend, high interest though but most reputable of a bad bunch.


Also have you joined a credit union? I know that my credit union lends up to £15000!!

I wouldn't bother to apply with others, just do what all the 'bank managers' that will come here and tell you to do:- pay off debt, work more, sell items and dont apply for more credit.

And b4 anyone starts on me - yes I do already have a loan with my credit union

Good luck

KingBeastie

You say that you can afford your payments but would rather 1 monthly payment, which makes sense.

Have you thought about maybe transferring all of the debt/s that you are paying off to a different bank account and then setting up a one off monthly standing order from your main account to the new one to cover the complete amount?
For example if you are paying off one debt at £200 per month and 3 others at £100 per month the total is £500 per month. You pay £500 per month into the account where the debts are paid from and then don't have to worry about what day they come out.

Just a suggestion, would help you avoid credit searches, high APR, etc.

tell_it_how_it_is

If it is only £4k, you can easily afford repayments, and you are of the opinion you won't get a conventional loan at a reasonable rate, it seems, on the face of it, that it'd be better and cheaper to continue to knuckle down and pay off the existing debts as soon as you can?

If not, you'd probably need to give us a bit more detail about your income, existing loan debts, durations and their APRs for one of us to advise on any other potential options we could think of.

DCFC79

Whats your salary ?

Whats your outgoings like ?

As its only 4k surely you can pay off the loans without the need of a loan.

maginot

If you have a poor credit rating you won't be able to get a loan with low interest. It is likely your current debts probably have the lower cost.
Try snowballing your payments, so you put the majority of free cash available to the highest interest debt.

Before you know it you will have only one debt left and have one payment.

Consolidation rarely works as it gives you easy access to borrowing that got you into debt in the first place and therefore repayments become higher and higher, your debt is not too high so just need to concentrate hard and pay off as much as possible.

MoneyMousey

Thanks for taking the time to reply. I don't think I have explained this very well or fully enough. So I'll provide some more details.

I owe as follows:
£1300 - Wonga
£400 - Payday UK
£300 - Capital One
£500 - Granite
£400 - Family member

I have greatly improved my control of my money in recent years and my poor credit rating is from years ago that is still haunting me today but I would hope to improve in the near future. The reason for the recent borrowing (and lack of financial control) is that I have just moved house and unexpected fees have put a strain on my finances and I looked for quick fixes to cover it.

When I say that I can comfortably afford the repayments, I meant that I could afford them on a loan. As it stands, the 2 payday lenders will both require payment in full at the end of the month and this again is going to lead to a strain on the finances and I'm sure you can all see how the vicious cycle starts.

As detailed above, my debts equal £2900. I am asking for a loan of £4000. The difference is to cover a wedding that I am attending in Cyprus.

Also my partner is expecting our first child in August so I'm sure you can all appreciate that I'd like to try and sort this ASAP and not have it hanging over my head.

So as you can see, I feel that my best option is a loan. I can't afford to repay the £1700 in Payday loans, but if I got a loan and paid all the debts off in full I could comfortably afford a loan upto £200 per month.

I hope this explains better and maybe someone could suggest a loan company that is likely to deal with me, but also preferably one that someone has had a positive experience with as there is a lot of bad reviews on this site.

Thanks.

tell_it_how_it_is

Unless I've missed it, I cannot see you having mentioned actually making an application, so it might be worth sorting a meeting with your own bank first to see if they can give you a small loan, or maybe start or increase an overdraft facility? Your debt amount isn't that bad - although it's a shame a couple of PDLs are among them - so it's not impossible your bank might just surprise you with a positive answer.

MoneyMousey

I have been checking my credit report recently to see if my credit position has altered. As I mentioned above I had credit problems a few years ago and I wondered if they were still on my file.

So unfortunately I know that my credit score is so poor that I don't need to make an application, as i know that I will get refused, and then further impacting on my rating. That is why I feel it will be a high interest rate, no credit check lender that I will have to use.

I also do not have an overdraft. I cancelled it as part of regaining control of my money. If I don't have one, I can't spend it!!!

tell_it_how_it_is

As it's a relatively small amount, I'd still be tempted to try it, even if it ends up hardening your belief. All it can cost you is a 'no' and one search on your file. I think there's no point just dismissing a potential cheaper option out of hand.

simon2010

You owe Wonga £1300, that must be hurting every month.

Absolutely disgusting that they have allowed you to get in that position. What's the interest £200 per month??

The owners of Wonga - You should be ashamed of yourselves, sitting in your mansions based on other peoples misery - disgrace.