Chances of getting a personal loan?

allofushere

I recently switched banks and was surprised to be approved for a full current account despite having what I believed to be a poor credit history. I have a satisfied CCJ (£700) from Nov 2011 and two old joint accounts which were in arrears but have all now been settled for over two years. I have a note on all my files, Experian, Equifax etc explaining these arrears etc resulted from separating from my ex. All my other accounts etc are up to date.

At the time of separating I borrowed money from my brother and would love to be able to pay him back.

My question is, does the fact that I was given a current account, make it more likely that i would be approved for a loan? I know its a bit of a flaky question as no definitive answer can be given without actually making an application, I just wondered if anyone had any experience of similar things?

MrSilk

A current account is not a credit product unlike a personal loan, I would not say that because you have been accepted for a full current account, would make it more likely for you to be approved for a personal loan, especially from a high street lender anyway.

Do not be tempted by pay day loans, and I'd personally wait until the CCJ drops off, until then, unfortunately it's almost certain that no high street lender would be willing to offer you a loan or one of their credit cards, not at a low rate, anyway.

allofushere

Thanks I'll just have to keep trying to get weekend/evening work
Luckily, I have a very understanding brother.......

Apples2

Why don't you just work out what the loan repayments would be, then set up a Standing Order into your Brothers account for that many months?

Alternatively start off the Monthly payments into his account and once your credit file improves enough apply for a loan. The loan will be for much less as you would have already repaid him a good chunk.

allofushere

Because at present I am in the final 18mths of repaying another loan, which is £250 per month. I cannot afford at present to pay the £250 ANd the monthly repayment needed to repay my brother, otherwise I would be doing that now. I wanted to consolidate the two as this would result in the payment being less for the two than it is for the one...if that makes sense. but...poor credit, no second loan

MrSilk

But it would be the same as having the second loan? but you're paying your brother back and not repaying the loan with interest?

allofushere

Im not sure what you mean....
Surely at present, without a loan, I would have to pay £250 PLUS £200 to my brother IE £450.
Consolidate the two, and I would only have to pay £200 plus?
I simply cannot afford to pay £250 plus any extra to my brother at present as I am on the bare bones..
thanks for your help anyway

gb12345

If you refinance the loan (if it is even possible), you will be paying interest on the money you owe your brother (which I assume is interest free at the moment). Plus the rate you get offered will possibly be higher than your current loan (assuming you took that out before your financial difficulties).

You may well end up with a lower monthly repayment (because you are extending the term), but you will end up paying far more in total.

Why not work out how much you can afford to repay you brother (even if just a token amount) and pay that to him - at least when your credit history improves you will owe him less if you are able to get a reasonable rate loan in future.

allofushere

I am doing. I can only afford ten pounds a month at present, so that's going into an account for him each month. I know by consolidating I will end up paying more but I am prepared to do that, as the alternative to him not lending me any money at the time was much much worse. He saved my life and basically I wanted to repay him as soon as possible as I do not wish to be thought of as taking the p**s.
Looks like I'm going to have to double my efforts to find extra work...:)