Advice Re: Possible application to Captial One

BugsyBrowne

Lazyloki wrote: »

Oh spam reported, spam reported! What a belter...

If you read the post I made it pretty clear about the negatives of using these kinds of services but in the real world things are sometimes less than perfect. I'm sure the OP is big enough to make the decision herself and I just wanted to make sure she was aware of all of her options.

But even using the likes of a PDL only once can have a negative effect on a credit report.

[Deleted User]

Which is what I said... But at the same time defaulting on a payment will have a negative effect also so it's up to the OP to decide which is better.

At the end of the day the OP has a fair bit of debt but she is managing to make the repayments. Is it better to take a credit hit on a short term loan or defaulting on a payment? I honestly don't know.

I personally would want to make the payment on time - when I was a student I sometimes had to make cash withdrawals on my credit card and then deposit the money into my current account to ensure that there was funds for direct debits. Life is full of compromises.

DevilPigeon

BugsyBrowne wrote: »

But even using the likes of a PDL only once can have a negative effect on a credit report.

Ok then, if it's a choice between using a payday lender once in exceptional circumstances (thus keeping green ticks on credit files) or not using one and risk getting an amber on the late account, which would you recommend...?

I do agree that there are usually viable alternatives to payday lenders, but what if someone genuinely doesn't have a choice?

fracturedsun

OP - have you tried talking to your bank. It's not garunteed but if you are managing all your payments on time they may well agree to extend your overdraft by the £100 you need for a short time.

I've done that before when a bill has needed paying before money I'm expecting has come in and it was always immediate and hassle free. If it's just for a short time and you have a good relationship with them they are often happy to help and are more likely to give a yes than a company you haven't been involved with before. They charge interest of course but much less than a PDL or running into an unapproved OD and it should have minimal impact on your credit report.

linniloo

Lazyloki wrote: »

Which is what I said... But at the same time defaulting on a payment will have a negative effect also so it's up to the OP to decide which is better.

At the end of the day the OP has a fair bit of debt but she is managing to make the repayments. Is it better to take a credit hit on a short term loan or defaulting on a payment? I honestly don't know.

I personally would want to make the payment on time - when I was a student I sometimes had to make cash withdrawals on my credit card and then deposit the money into my current account to ensure that there was funds for direct debits. Life is full of compromises.

Thank you ever such a lot Lazyloki - your original reply (which really made me snigger at first - well done :T) was well explained and I do understand that they aren't the best solution but I had also considered them (at 1:00am this morning!). I think if it was a choice between them all I would prefer to go to Cash Converters et al before I turn to payday lenders - these would be a very last resort if it was something massively important. You do what you have to do to get by, dont you? And I agree, life isn't perfect particularly for people at the moment. It is my opinion that people who try to say their life is perfect and have never made a "bad" decision must be lying.

DevilPigeon - this is the answer I would like to hear too - which is worse?


P.S. I will never understand why we have advice forums for people and then they get berated (by some) when we ask for advice. If I was after a lecture I'd contact the Open University.

linniloo

fracturedsun wrote: »

OP - have you tried talking to your bank. It's not garunteed but if you are managing all your payments on time they may well agree to extend your overdraft by the £100 you need for a short time.

I've done that before when a bill has needed paying before money I'm expecting has come in and it was always immediate and hassle free. If it's just for a short time and you have a good relationship with them they are often happy to help and are more likely to give a yes than a company you haven't been involved with before. They charge interest of course but much less than a PDL or running into an unapproved OD and it should have minimal impact on your credit report.

Thank you Fracturedsun, a helpful suggestion and good to hear your personal experience in a similar situation - I haven't spoken to the bank yet. I do have to go in there today or tomorrow to pay in some money to cover some of the payment but I was a bit scared to ask. Do you think I'll need to make an appointment to discuss this sort of thing (I don't want to discuss it over the counter with everyone listening)?

nyc_451

I just know that most of the customers who come to my workplace to take a short term loan say they will repay it next month and never use us again. Doesn't happen very often...

If you borrow from family, at least you wouldn't have an option to roll over and get into that mess. Besides, is it a big deal for British families to help each other with 100 quid? Seriously?...