We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Bad credit rating

Options
Hi a friend of mine has just borrowed 1000with a log book loan company at a ridiculous apr as he states he has a bad credit rating and he is using it to rebuild it. Total payable is 2800!! I'm trying to come up with a solution at a cheaper cost. He says he can't go for a conventional bank loan as would be refused yet got a mortgage agreed in principle this year. I'm trying to sort this quickly whilst we still have a week of the 14 day cooling off period. Any advice ?

Comments

  • matttye
    matttye Posts: 4,828 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Debt-free and Proud!
    Using a logbook loan won't help much even if he pays it back on time. The thing that will improve it is time. There are no shortcuts.

    He could apply for a credit card and repay that in full every month. That should help. But it will still take time.

    Getting a loan for this purpose is ridiculous. I'm not being rude, it's just an incredibly bad idea.
    What will your verse be?

    R.I.P Robin Williams.
  • thebritishbloke
    thebritishbloke Posts: 1,472 Forumite
    Oh my jesus christ, tell him to cancel the loan immediately.

    He should get a credit card and pay it off in full every month. This is the best way to build up your credit (if he got a mortgage though, pretty sure he doesn't have bad credit). He can use the MSE Eligibility Checker to see what cards he might qualify for.

    For the love of his wallet, get him to cancel the loan.
    Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.

    ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.
  • He needs the money for some last minute bills but tells me he can't get a conventional loan. He says he doesn't want a credit card!! Arrrrgghh so frustrating !! Just wanna help
  • AJG384521
    AJG384521 Posts: 94 Forumite
    It would probably be wiser to sell his car.
    I have enough money to last me the rest of my life,as long as I die next Tuesday.
  • matttye
    matttye Posts: 4,828 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Debt-free and Proud!
    kitty3971 wrote: »
    He needs the money for some last minute bills but tells me he can't get a conventional loan. He says he doesn't want a credit card!! Arrrrgghh so frustrating !! Just wanna help

    Ahh right because initially you just said he was using it to rebuild his credit.

    Will his bank not give him an overdraft?
    What will your verse be?

    R.I.P Robin Williams.
  • Sorry didn't make myself very clear. A combination of needing the money and his way of trying to rebuild credit score . Surely tho if he has been offered a mortgage he could be offered a conventional loan?
  • MEM62
    MEM62 Posts: 5,316 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    AJG384521 wrote: »
    It would probably be wiser to sell his car.

    In effect, he probably just has - he just doesn't know it yet.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.