Obtaining a loan with bad credit?

Savadra

Hi, I am new to this forum and just had a couple of questions.
Up until last year a had some problems financially and I was using Wonga etc, missing payments etc until I luckily got some help from family to clear my debts.
I have since sorted myself out and am now in a new full time career and earning good money. I am looking for a loan of around £8000 for the following reasons.
£4000 to pay of family debt as they could do with the money.
£2500 to pay off a course I took for my new career.
£1500 desperately in need of a new car as I drive far to work.
I have applied to all the lowest APR %'s that come up on comparison sites but none will accept.
My bank said they would accept but the APR is 24.9% so over four years I am paying back around £12000 which is just too much.
Is there some solution out there for me.
I am looking at paying around £200 a month for four years as I know I am safe in a job and I can afford this. Thank you.

Apples2

Unlikely to obtain such a large amount with missed payments on your file.

Lending is geting much stricter, have a look in the Wonga thread to see all those rejoicing, the upshot is those guys have made it significantly more difficult to be accepted anywhere, even the Payday lenders are saying no.

Foxy-Stoat_3

Customers cannot choose the interest they pay back, the banks set the interest they lend to.

You credit history is not good enough for the lowest rate loans, you could try and build a good credit history up by taking out a credit card for food and fuel and settling it every month and never miss a payment. Do this for a 6 months and re-apply.

There will be no short cuts to get £8,000 for £1,600 in interest I am afraid, maybe a term of 2 years but not 4.

iolanthe07

With a poor repayment history, 24.9% may be about the best you will get tbh. Could you manage by borrowing less than £8,000? As Apples states, lenders are becoming very picky these days.

Foxy-Stoat_3

24.9% isn't that bad considering that the OP will only have an asset of £1500 so the rest is debt consolidation and a career loan.

LoadsaDebt

Out of interest what bank are you with? A loan at 25% is fantastic if you have a bad credit report.

Snap their hands off!

DCFC79

I agree with everyone else, if all your bank is offering is 24.9% then generally thats the best you can get as they know your account.

jonesMUFCforever

I agree with all previous posts - take the loan pay on time for 12 months then go back and see if they will lend the balance to you at a lower rate.

thebritishbloke

One option is a super balance transfer through MBNA, if you get a large enough limit (or accepted for that matter). If you already have a lot of searches on your file, you're unlikely to get accepted for anything new you apply for.