Getting a loan with fair credit

adamascot

I have recently, changed jobs and need a loan of around £1000 to cover rent phone bill and overdraft etc. I checked my credit rating and it is fair as I have applied for a few loans with no success. I know the whole thing about not having good credit them I won't get a loan but wondered if anyone knew of anywhere that will give me a loan of £1000? I only rent and have no car so a secured loan would not work. I have a job, a new one but I have one. Anyone help with a loan for someone in my position? I have tried the usual banks and things. Thanks

Quimoi

As lots of people on here will tell you, just because a credit reference agency rates you as 'fair' doesn't mean much - they aren't the ones lending you money and the actual lenders each have their own acceptance criteria.

Not what you want to hear but if you've been declined by the 'usual banks and things' then there aren't many other options. I assume you've approached your own bank where your salary/wages are paid into? They are usually more forgiving on credit scoring as they can see how you've operated your account with them. Failing that then you are stuck with sub-prime lending which carries horrendous interest rates.

Have you any family/friends who could help?
Perhaps a bit optimistic but if you've been a good tenant to date then could you speak to your landlord to see if you can miss a month and overpay for the next couple of months to make it up?

adamascot

Family and friends are a no go and so is the bank. Have tried. When you say sub-prime lenders? Who are these? Could you give me some of their names?

jimmy*c

Agreed, can't really see any other lenders (than the likes of payday loans) being prepared to offer you that amount. Do not use a payday loan if you can help it... Trust me, us, others on this forum and don't make it worse.

Have you rang the creditors/providers to make them aware of your situation?

DCFC79

Should have got enough money together to cover the gap.

Should even have been saving some of your salary.

Not what you wanted to hear, can't think of anyone you can try.

What is the breakdown of the £1000 ?

Tryingtomoveout

Apply santander. I remember when I was applying for a personal loan for the first time they were the only high street bank to accept me.

dealer_wins

Rent, phone bills and overdrafts should be covered by income.

The fact you cant afford these basic things will mean you are a high risk applicant and would only be considered by high interest/high risk lenders!!

Foxy-Stoat_3

Try getting a Vanquish credit card and go from there.

See you on here again in a year or 2 after the spiral has gotten too expensive.

Pixie5740

Have you had a large gap in between jobs? You probably get paid in arrears so when you leave one job and start another one the following week you don't usually end up with a gap in pay.

Failing that I would concentrate in trying to beg, borrow or steal (well maybe not stealing) the money to pay your rent as it's a priority bill. The overdraft and phone bills, whilst important won't risk the roof over your head.

bargainbetty

Applying for too many loans seems desperate - stop it. Applying for a sub-prime loan is insanity - you will pay hugely over the odds for it. You might be best off talking to your own bank about an overdraft facility to tide you over, rather than a loan. If your own bank, who see your accounts, won't help you, then many reasonable lenders won't either. You do have a new job, but you are inside a probation period (typically three months) and you do not have as much security as you might think. Lots of lenders won't touch you for that reason.

Speak to your landlord, ask your new employer, get a part time bar job, sell anything of value and tighten your belt as far as possible. Don't fall into a debt trap now. Good luck

jondavis30

The reason you probably can't get a loan is because of the fact that there's no 'suitability to lend' information. By that I mean you've probably never had credit cards, loans, etc.

These are the things that build your credit rating. Start with a credit card from a sub prime lender (HEED MY ADVICE CAREFULLY).

ONLY use subprime credit card lenders to IMPROVE your credit rating, NOT TO BORROW FROM THEM -unless you can pay it all back when the next balance payment is due (thus paying no interest).

By in-keeping with payments and keeping your available credit open, you'll find that in the next 12 months or so you'll be able to borrow effectively, by that I mean at reasonable repayment rates.

Having said that, your OWN BANK might take into consideration your personal circumstances.

An example of this was that I had a variety of debts that we're cheaper to manage via a £8k loan. Now, I have had a varied experience with lender acceptance, and have banked with nearly every bank on the high street, so I knew what the score was with their products and likelihood of acceptance.

I applied for a loan with First Direct before moving to HSBC. First Direct Declined stating they were unable to take into account the way my bank account is managed and the amount I have left at the end of the month.

Moved to HSBC, discussed details and agreed the same terms as what I said to First Direct which was: use the £8k to pay off exisiting, non secured credit (I have a hire purchase at 4.4% and my loan rate is slightly higher than that).

They required precise proof of my income, my salary, balances on the credit AND how I would afford to pay them back. I sent them a spreadsheet of current spending / savings / floating balance forecast, and sent them a spreadsheet of forecast spending with the loan considered.

What First Direct didn't consider was that I was shifting nearly £300 a month onto non secured debt, where as now, I was able to shift £167.00 a month at a fixed amount. Sure it'll be paid off slower, but it also enables me to start saving for a mortgage.