Where to go?

Lfcjamie9

Hi there
I am currently looking for a 12month monthly instalment loan for £1000. I earn £900 a month. I would prefer something that is same day funding? Have any of use any ideas where the best place to go would be.

Thanks

SeanG79

your bank?

bargainbetty

What Sean said.

If you cannot obtain a loan from your bank, then the chances are that you will not get a good rate elsewhere, so might need to rethink your plans.

Do not, under any circumstances, use any websites that ask you to submit your debit card details to 'find you a loan'. They will take money from you, and give you terrible options, if any.

Ask your bank first.

kloana

Lfcjamie9 wrote: »

Hi there
I am currently looking for a 12month monthly instalment loan for £1000. I earn £900 a month. I would prefer something that is same day funding? Have any of use any ideas where the best place to go would be.

Thanks

Definitely your own bank first and foremost.

For the amount involved, a £1,000 overdraft would generally come with a very similar rate as a £1,000 personal loan (though overdraft rates and policies will vary, depending on who you bank with). It's not uncommon for small personal loans to come with APRs in the region of 20% (don't believe the hype when you see APRs lower than 10%, as these usually refer to loans well in excess of what you desire). You'd need to be very disciplined if using an overdraft, though, and ensure that you pay back a set amount each month, including interest costs.

Both loan and overdraft are theoretically available the same day, if using your own bank.

So, have a chat with your own bank.

Alternatively, credit card? If you're making a purchase (as opposed to needing ready cash), a £1,000 limit would not be very difficult to obtain on your income, assuming you have a good enough credit history? 'No credit history' is usually even OK for this amount, but generally with your own bank, who 'know' you. If you have no credit, or poor credit, you may be offered less (if anything at all) by another lender, and may be expected to pay quite high interest.

With all credit cards, just be mindful of the interest. However, if you can secure an APR of 20% or less, it'd be consistent with the kind of rate you'd pay for a loan or an overdraft. Don't be tempted to pay just the minimum monthly payment (which would usually be a maximum of just £30 per month, on a starting balance of £1,000). Rather, pay it in 12 x monthly installments, accounting for interest (there are calculators online that can tell you what to pay, and the same applies for overdraft 'loans'). Repaying a CC in this way could also nicely boost your credit rating further.

If you have poor credit, a genuine loan (not the ones someone else warns about, where you pay a fee) or overdraft might not be possible. Credit card may be possible, subject to the limitations as above.