Sinking like a ship! Please help!

flizzmo

Hi Everyone,

Please excuse me if these questions have been answered elsewhere. I've had a look through the forums but can't find any applicable threads or posts.

I'm currently facing an immense difficulty with my financial situation. I need to borrow approximately 6,000 as part of a loan to fund an emergency situation I have. Having tried one or two lenders and having been rejected, I've come here for a little advice.

I'm 27, a private tenant earning approximately 1300 a month -- have worked for the company for 4 years -- and my credit report with Experian shows me being on the electoral roll for 10 years, having two credit cards (Halifax and Capital One), and a good solid history with them (minus two missed payments for the month of May). I have no CCJs and no defaults.

However, having obtained a credit score from Experian, I can't help but wonder why my score is 380/1000! Surely the missed payments on my cards could not reduce my overall rating to such a degree?! (I'm still under my card limits on both cards).

As a last resort, I'm considering taking a loan from FLM Loans, or Welcome Financial services; I'm aware that both companies charge 40-50% Apr and have severe penalties.

Can anyone please shed some light on this situation? Any recommendations for any companies that process 'bad credit' applications with a lower interest rate than the above?

Many, many thanks in advance.

jonesMUFCforever

Can you give a little more detail about why you MUST have a six grand loan?

The one or two lenders who rejected you - did they give any indication why?

If you take a loan from Welcome or their ilk I guarantee you will be back on these boards within the year bemoaning that you had done so.
You already know how they work so why have the aggro?

funky1471

Stay away from those lenders. Please if it is not personal share with us the reason for needing six thousand pounds so urgently. Somebody may be able to offer advice on other ways around it.

You say you need it quickly but a loan is nothing to rush into.

nomoneytoday

Missed payments will totally mess up your credit record.
If you were a bank, would you lend money to someone with a failed payment history?

flizzmo

Hi again everyone,

Thanks for your replies, wisdom and insight - much appreciated.

Yes, there are personal intricate reasons as to why I need the 6,000 loan; I borrowed it many moons ago from a family friend, and due to bereavement and his financial situation, he needs it back. (So it's debt consolidation to a degree, but not a contracted one?)

The two lenders to whom I applied to for a loan, quite simply mentioned my credit rating and credit scoring, beyond and above that, they didn't really clarify anything. I just can't fathom why my score with these lenders (both use Experian) is so low, when all that is visible on my report are two missed payments -- I've even added a notice of correction on my account pertaining to these.

I'm aware that Welcome Finance and FLM loans are companies that induce self-infliction, but I suppose I don't have many options right now and I have to bite the bullet. I mean I'm not paying any rent at the moment, my monthly outgoing are low and I can afford their loans, even through their rates are sky-high.

Can anyone please advise of any other legitimate companies that do lend to applicants with a bad credit rating, bar the two above?

Also, I've recently purchased a house recently -- will monthly payments on the mortgage for it increase my credit rating significantly? How does this work?

Thanks again guys!

Dylanwing

Fizzmo - A secured loan may be the answer (Are you a homeowner (Post 2) or a private tenant (Post 1), or in the process of buying??). Some lenders go up to 125% of value (Unless that has changed in the last few weeks), and you might get a better rate. Avoid First Plus though!

jonesMUFCforever

Have you considered asking the other party whether they would accept repayment in instalments?
So rather than pay interest on a loan you set up a monthly standing order of £xx per month until it is paid off or until you are in a position to make a lump sum payment.

flizzmo

Hello!

Again, thanks for the replies.

- I'm in the process of purchasing a house, the completion/exchange date is in two weeks (managed to save up a cash deposit for it).

- Paying back in installments isn't really an option, because the other party requires a lump sum payment.

Guys, I've thought of another possibility: What if I make a joint loan application with my partner? Will this increase the chances of a high street loan? Will this construct some kind of financial association?

Cheers!

grey_lady

Have you considered biting the bullet and pulling out of the house move and using your deposit money to pay back the debt?

funky1471

I am not trying to be mean or spiteful in any way but I would have considered it wise to have paid back the friend who loaned you the money before saving towards the deposit for a house....But then again the person may not have needed the money at the time, but I would think it is always best to pay off something like that before making a big commitment such as moving house and saving for a deposit...

flizzmo

Hi,

The party in question did not require the amount at any point before this, had they asked, I would have readily proposed finance using the house deposit -- this *is* the dilemma!

Pulling out of the house isn't really a feasible option, as ironic as the suggestion is, as I have had to pay a lot of money for the mortgage arrangement fees, etc.

Applying for a loan through a joint application - good idea, or not?

Thanks.