Please help - Forum newbie

gazinblackpool

Hi....

OK. I'm full-time employed. I have a salary of about 17500 which will rise to 24500 in sept. I have no debts other than an overdraft of which I am using about 80% of at present (about 1700). About 6 years ago I registered with a debt management company. I paid off all my accounts over a year ago now although there is one default remaining on my file which is due to get wipped in a month or so.

As I have started a new career and relocated I am looking to get a small loan (5000) to set me up, buy a little car, clear the overdraft and buy some much needed essentials.

My credit rating (presumably due to the issues at the end of paragraph 1) appears to be quite poor. I have been refused of quite a few lenders. I cannot find a guarantor.

My knowledge of this is poor and as such I am writing to see if anyone knows of any companies that will lend 5000 to folk with poor credit (already tried zopa). I am a little anxious to go this alone as I know several folk have been ripped off by 'brokers' that have left them £50 lighter with no loan!

Can anyone make suggestions please.... pretty please.

Thanks

G

callistris

Your own bank is the best place to start as they'll at least have some form of history with you.

Anyone other than your bank will be likely to decline you based on the lack of credit accounts on your credit file. You may need to get one of those sub prime cards like Vanquis, Barclaycard Initial etc etc to start building up your file again.

Now I'm not 100% on this, but having no other debts and using your overdraft by 80% may look bad to creditors also.

Be careful with doing loads of applications for loans as this will also have an impact on your credit worthiness:)

DCFC79

Definitely try your own bank, i dont think living oin your OD is a good idea, Why are you in your OD by £1,700 if you earn 17k ? Cant suggest who to try but someone else may suggest where to try, you tried family, friends.

CLAPTON

wait until your credit files are clear

being in your OD is a big problem as a lender will wonder how you are going to pay the loan off if you can't live within your means

gazinblackpool

Cheers guys, just a few further points...

In OD beacuse in the break between last career and this one I had one or two emergencies to bail myself out of. I will eventually get out of my OD but will obviously take time. Looking for a loan that will help clear this and allow me to get a small car etc etc...

Bank has already refused me. As I said, only looking for 5000. Can easily afford up to 260-300 a month and pay is going up to 24000 in just over 2 months. I certainly haven't got family or friends that could or would lend me 5000!

Are my avenues for a loan pretty exhusted then?

System

If your own bank has said no, it's unlikely any other decent company will loan to you. Do you need the car right now? If not, I'd suggest saving the money rather than borrowing it. It'll take less than six months to clear the overdraft at £300 per month, and you'll presumably be able to save even more once your pay goes up. Then you've got whatever you can save after that to put towards a car.

opinions4u

I am looking to get a small loan (5000)

Your definition of the word "small" is an unusual one.

Clear the debt, get saving and avoid borrowing.

If a mainstream lender won't touch you don't go seeking out an alternative lender. It will end in tears.

chalkie99

gazinblackpool wrote: »

Can easily afford

Three of the most dangerous words used on this forum.

Your salary increase will give you just under £400 a month after tax and NI deductions.

Your "little car" purchase will mean road tax, insurance, fuel, maintenance, etc which will eat into that quite heavily, I imagine.

Now, considering you seem to have been living at the edge of your previous salary that loan might be stretching you again.

Think carefully before you borrow. There are generally around three times more people scanning the debt free wanabe and bankruptcy sections than there are the loans section which should be a warning in itself.