Best loan for someone with no credit

Emily1985

Hi,

I posted this in the credit card forum but they recommended I post here instead:

Unfortunately I'm in a situation where I'm preparing for the worst. I was made redundant three weeks ago and I'm currently in the process of claiming unpaid wages.
Since then I have applied for over 50 jobs specific to my qualifications and I was very fortunate to get a maternity cover job.
The problem is that the start date is not for another 10 weeks.

I have worked out that by using my personal savings to cover all current outgoings (which I have removed all unnecessaries due to my redundancy) there is going to be a significant period of time when I will have no money.
Because I'm v. frugal I drew up a plan of my typical expenditure for the next three months if I had no money coming in and just savings and with just the necessities like mortgage, electricity, council tax and food I worked out roughly £1900 would cover it until I start my new job.

I have never had loans or credit cards before. I applied for and was accepted for a £4000 loan last week with Amigo loans, but it fell apart on my guarantor - he is deaf and they couldn't conduct a conversation with him to finalize the deal. They suggested a typetalk phone but I can't sanction the cost of one, since the average one is over half my personal savings - and even then I'd have to teach him how to use it and type. It was a massive punch in the stomach!

So struggling for ideas I have arrived here. I briefly read here that credit cards are better than loans, so could anybody recommend the one which best suits my requirements?

Thank you for your time.

CLAPTON

presumably you have applied for JSA

unless your potential guarantor is rich and can afford to pay the loan back out of their own resources then don't ruin some-else's life by even asking them


try for a credit card ; they are easier to get

Emily1985

CLAPTON wrote: »

presumably you have applied for JSA

unless your potential guarantor is rich and can afford to pay the loan back out of their own resources then don't ruin some-else's life by even asking them


try for a credit card ; they are easier to get

Yes, I've got the JSA ball rolling but I know they can take a while to sort through the paperwork.

I don't have any potential guarantor but I would never consider someone who couldn't themselves afford to repay it in the unlikely event that I fell ill and couldn't pay it back myself - which would be the only way I couldn't pay it back. I'd rather sell all of my possessions than put that on somebody else.

I'm quite the immaterialist but also a pragmatist and realist. I came into the world with nothing and I don't believe money has any power over me personally. I have lived homeless before, I can survive if pushed. I know not everyone has this approach to money but everyone is different.
Ideally I'd quite like to keep my little life going the way it is - living within my means.
I've done all the workings out and calculated exactly what I need to cover. It would be a shame to lose my home and get into debt with payday loaners over a matter of a few weeks.
My actions on this site are preventative, I don't want the worst to happen.

I've never had a credit card, which is the best to get in your opinion? Also, how would I pay things like my rent with a credit card?

CLAPTON

assuming your bank a/c is in good order then try your bank for a CC


although you probably won't be able to pay your rent (or many other bills), what you do is spend anything that can be purchased using the CC and save as much of the money for the one's that can't.

19lottie82

Amigo loans are a total rip off. Get your guarantor to take out a loan in their name for you at a drastically reduced APR and then pay them back. No more risk involved for them that with Amigo. Less actually as the total balance will be less.

angelsmomma

In post one you talk of mortgage but in post three you mention rent.
You also say the guarantor is deaf then in another post that you don't have any potential guarantor. I am confused

wronlaster

If your bank account is good try for cc ...you ca also get professional help dkpp.com.au

Emily1985

angelsmomma wrote: »

In post one you talk of mortgage but in post three you mention rent.
You also say the guarantor is deaf then in another post that you don't have any potential guarantor. I am confused

I use the terms synonymously, technically speaking I mean mortgage.
Yes, my original guarantor is deaf, so Amigo couldn't conclude the deal. For this reason I haven't considered him as my new guarantor should I resubmit an application.
hope that clears it up.

bargainbetty

Can you apply for temporary work for the next few weeks? Bar work, waitressing, anything at all? Go to the DWP and explain that you will be in financial hardship unless the applications are processed - push it through.

Go to anywhere that employs casual staff, and ask if they have shifts - people are on holidays over the next ten weeks - places might need cover. It doesn't matter if it is Tesco or the local pub, you might pick up some work.

Good luck

Please don't use Amigo loans - they are truly awful. See about a CC from your bank instead, or consider taking in a copy of your employment contract and asking for a temporary extension to your overdraft.