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kitty3971
Posts: 3 Newbie
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 ?
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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.0 -
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.0 -
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 help0
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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.0
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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.0 -
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?0
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