Been paid cash but need a loan, any ideas?

Silaqui

Hi all,
A friend of mine is after a bit of advice, any thoughts much appreciated.

She has been working for the past 5 years or so as a personal care assistant, being paid in cash (all above board, still pays NI etc). She's 30 and has never been unemployed.

She's moving to a new job soon which is further away, which means she will have to pay for a monthly bus pass (expensive round here!) which she is happy to do if necessary but has recently passed her driving test and wanted to try to get a loan for a car to save on travel time (20min drive, 1.5 hours on bus).

However she's been to her bank (Barclays) and they've said that because she hasn't had her salary paid into the bank directly the can't offer her a loan. She does put her money into the bank and DD's etc come out of it, but her rent is paid cash to the landlord.

She doesn't have any debts, credit cards etc and never has, which isn't helping as she has no real credit history.

Any ideas where she might be able to borrow from? She'd be looking for approx 2k. Family isn't an option.

Any ideas much appreciated as I'm stumped, my suggestion was the bank!

Thanks,
S

suicidebob

Credit Union is probably her best bet

DCFC79

Also agree with the Credit Union idea, whether they will help is another matter. If not then start saving whilst she gets the bus.

Tixy

May be worth her approaching her new employer to see if they may offer a loan to her to be repaid from her salary? Particularly if she could manage with a runaround for under £1k to start with.

Without any credit history then she probably will struggle to get mainstream credit, but if there are no other options then possibly may be worth approaching her bank again in a few months time - assuming the new job will pay salary in to the bank.

Silaqui

Thanks for the replies.
Will get her to seek out a local Credit Union to find out. Otherwise yep bus it'll be. Her bank said give it 6 months and then go back.
I was wondering about a credit builder type card but I imagine the rates will be high and the limits low!

Thanks again!

Pixie5740

If your friend gets car finance through the car dealer then it might not matter so much that she's paid in cash as the loan will be secured against the car.

dealer_wins

Not meaning to be harsh, but over the last 5 years if she hasnt managed to save up £2000 (which is less than £35 a month), how is she going to afford a loan which will be about £100 a month?

Paul_the_Painter

If she has had other credit in the past, it COULD be worthwhile to apply at another bank. The reasoning is as follows:-
Usually your bank has the best picture of your finances, however in this case they don't. They actually have more information than a "standard" lender would, but it is negative (that is their information is that her salary is lower than it actually is) a different lender will not have access to her salary information (other than that supplied to them by the borrower)
If she is on the electoral roll where she currently lives, is named on utility bills, has a mobile phone contact and uses a credit card, she probably has a pretty good chance of a loan from another bank.

jondavis30

If Barclays we're going to be reasonable about it (I don't know because I wasn't there) then they should be asking for proof of income. People receive payslips don't they ? that's proof of income.

Why aren't her wages paid into her bank account anyway ? Somethings amiss here.

The fact that wages aren't paid directly into the account means that you're a very high risk borrower on the basis that you might not deposit all of the cash that you get paid, or you might not deposit any of it.

Being paid electronically is the fastest and most secure way of payment and proof of employment.

I agree with Dealer Wins though.