Repaying loan early to take new loan?

Raiiboii

Hi everyone, new here so a big hello to everyone!

Basically I took out a loan with The Money Shop and have 2 repayments left to pay (always paid on time)
With Xmas coming I wanted to take out a new loan to help me through however they don't allow you to have 2 loans running. My credit rating is awful unfortunately (due to when I turned 18 I thought it was a good idea to take out a lot of mobile contracts and defaulted) I am paying them back now but I realise I was a stupid teenager now!

Anyway my question is, if I pay the remaining back early do you think I would have built up internal credit with them and likely to be accepted for a new loan? As if I pay it back and it's a no then I really am even more screwed over Xmas!

Thank you for taking the time to read

redpete

Don't know the answer to the question but I do know that taking out expensive loans for day-to-day expenses (including Christmas spending) is not a sign that you have learnt your lesson about the follies of living on credit.

Raiiboii

I appreciate that. I am working now and it is just the fact had some unforeseen costs this month, everything I have kept up to date just don't want to let my family down this Xmas as we lost my mother last year. It probably is best to manage with what I have though as you've said

ViolaLass

Buying lots of presents isn't going to make up for your mother dying. Don't try to fill the gap with money.

[Deleted User]

Perhaps they have a short fall at work? It's not just pressies it's food, dealing with public holidays, enforced time off work, becoming the hermit as you shut yourself away..

In the end I saved nearly £40 on my last loan. Brother at deaths door or not, God help me. I've certainly learnt money and worrying how people view payday loans means not a lot anymore. Helped me out of a hole and weeks later my luck changed.

I always thought you had to wait 30ish days to reloan (learnt entirely from another lender I think) though when I settled my most recent I got mailed a week later suggesting I could reborrow if needed but I just honestly don't know how serious it was.

Selling items I no longer needed was also an easy option. Cash connie welcomed the new stock I'm sure.

OP got small short term loan every chance under new times it's affordable to him.
TMS isn't one I can say I've borrowed from in recent times so it might be better to ask them direct? Hear it from the horses mouth - sadly not many people like to admit it so admire you

Hope Christmas passes as well as it can do x

Lmh71365

I wonder if they would allow you to consolidate your loan into a new one. Eg. You take your new loan out and in doing so, pay off your old one with some of the new loan money. This way, you would only have one loan at a time, but wouldn't be risking your capital to achieve it. Maybe worth asking?

However, I do think, if you can, cope with the money you've got rather than borrowing. Fancy presents won't be making anything better x

ReadingTim

I hope you're not going to claim that Christmas/Christmas presents were an unforeseen cost, because as far as I know, it happens about the same time every year....

But anyway...how are you going to repay the current loan? Savings? Or by a new loan? If it's savings, I suggest you leave the loan as it is, and use the savings to pay the unforeseen costs - that's what savings are for, and as you say, there's no guarantee you'll get another loan.

But if you plan to take a 2nd loan to repay an existing loan (AKA a consolidation loan), I suggest you forget it, and plan your Christmas accordingly - no amount of spending will bring your mother back

Thrugelmir

Raiiboii wrote: »

It probably is best to manage with what I have though as you've said

It's the thought that matters not the value of the gift. Shop around , you may be surprised what you can find to buy for a small amount of money.