0 Hour Contract Loan?

ukjamesuk

Hello,

I recently had an idea to take out a loan in order to pay someone back money that I owe them, and purchase a motorbike to get of bloody public transport.

In order to do this i'm going to need about £5-6000 and am looking to take the loan out for around 5 years, just to keep the monthly payments to a minimum. Will probably pay off the loan before the 5 years is up, but that's irrelevant.

I have applied for a loan with my bank and was highly advised to withdraw my application as soon as they heard '0 hour contract'. Even after explaining that I earn what i'd have to pay a month, in 1 day. Even what i'd be saving on monthly public transport is more than the loans monthly repayments too!

A loan with a bank seems to be the only loan you can get these days without terrible amounts of interest. I've looked at possibly getting a guarantor loan, but most of their websites seem to have the same theme as them bandit loan companies such as wonga, which rings alarm bells straight away. Plus all of their APRs that i've seen are around 50% which is still pretty bad, but affordable as a last resort i guess :S.

Is there any other option for me? Other then friends or family.

Any advice is much appreciated!

CLAPTON

ukjamesuk wrote: »

Hello,

I recently had an idea to take out a loan in order to pay someone back money that I owe them, and purchase a motorbike to get of bloody public transport.

In order to do this i'm going to need about £5-6000 and am looking to take the loan out for around 5 years, just to keep the monthly payments to a minimum. Will probably pay off the loan before the 5 years is up, but that's irrelevant.

I have applied for a loan with my bank and was highly advised to withdraw my application as soon as they heard '0 hour contract'. Even after explaining that I earn what i'd have to pay a month, in 1 day. Even what i'd be saving on monthly public transport is more than the loans monthly repayments too!

A loan with a bank seems to be the only loan you can get these days without terrible amounts of interest. I've looked at possibly getting a guarantor loan, but most of their websites seem to have the same theme as them bandit loan companies such as wonga, which rings alarm bells straight away. Plus all of their APRs that i've seen are around 50% which is still pretty bad, but affordable as a last resort i guess :S.

Is there any other option for me? Other then friends or family.

Any advice is much appreciated!

if you know some-one well enough who would be willing to act as a guarantor, then ask them to get a loan in their own name and give you the money

ukjamesuk

CLAPTON wrote: »

if you know some-one well enough who would be willing to act as a guarantor, then ask them to get a loan in their own name and give you the money

I thought of that but no one will do it.

iolanthe07

It will be hard to get a loan at a decent rate if you're on a zero hours contract because your earnings, even if high, are considered to be very insecure. This is unfair, but is just one of the consequences of this kind of contract. Could you negotiate with your employer to put you on a regular contract?

DCFC79

I see 2 options here, either find a full time job or save up what ytou need.

Apples2

I agree, you already owe a friend money which is essentially a guarantor loan already under your belt.
Whilst you seem able to guarantee earning enough to make a payment in one day but you can't guarantee earning a bean on day two.

Your options seem limited to saving for now.

tiger_eyes

I think they may be a bit sceptical that you earn so much money and you're so confident of repaying, yet you have no savings and are already in debt.

Consider also the fact that if you save up and buy the motorbike cash, you can spend the life of the motorbike saving to buy its replacement also cash, whereas if you borrow the motorbike, you'll spend the life of the motorbike repaying the purchase plus interest, leaving you not only poorer but also with no fund to replace the motorbike in future.

Monkeyballs

Maybe try a credit union?

You might need to start saving with them first for a few months but once you have some form of history with them then they may be willing to offer a loan?

To be honest though I think I would be tempted to just bite the bullet and save for a while then buy a cheaper bike...

MB

CherlokHomes

The title of guarantor loans should be "what mug with a decent credit history will be foolish to borrow 40% off us when they could get 5% elsewhere"

Monkeyballs

Innovate wrote: »

The title of guarantor loans should be "what mug with a decent credit history will be foolish to borrow 40% off us when they could get 5% elsewhere"

But the problem presented by OP is that he can't?

MB

gb12345

Monkeyballs wrote: »

But the problem presented by OP is that he can't?

MB

It would be the OP's guarantor who is the one that could get the 5% elsewhere, but will end up paying 40% when the person he guaranteed for stiffs him and stops paying.