Best short term loan option?

familyguy12

I need to borrow about £500.00 to cover unexpected bills as soon as possible.


I bank with Santander but don't think I'm able to arrange a loan at short notice.

Without going to those payday loan (sharks) merchants can anyone recommend a loan provider for this type of amount?

Intention is - get the cash/transfer - pay off what I owe and pay back at a monthly rate.

I have a sound credit rating and have not made a loan application before.

Would a credit card make as much sense? Sorry not too sure on all this

Where should I be looking? (pls don't say the internet! )

Gambler101

Ask for an overdraft?

[Deleted User]

familyguy12 wrote: »

I have a sound credit rating and have not made a loan application before.

Doesn't sound like you will have a sound credit rating with any lenders, if you have no previous credit history.

Who do you need to pay? What payment types do they accept?

Do you have an overdraft or any credit cards at all?

macman

If your credit rating is 'sound' (no late payments, defaults, or CCJ's) then your existing bank is surely the best place to start? Your actual credit score is meaningless. Assuming you have the means to service the debt of course? What overdraft facility do you have? What repayment schedule are you seeking?

Ebe_Scrooge

As above, the simplest option will be to ask your bank for an overdraft.


Second option is to get a credit card - however, check that the people you need to pay will accept a CC, and if they do, will they impose a surcharge ?


Third option, if they won't accept a CC - look for a Money Transfer card ( see here : http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs )


Options 2 and 3 will require you to have a decent credit history ( note the word history, not score ! ). If your credit file is on the thin side, then your own bank is likely to be the best bet - in the absence of any other data, they can at least see how you've been running your account for the last few months / years.

familyguy12

I have an overdue bill I need to pay hence the need for a loan of about £500.
I have a Santander 123 a/c which is basically running on empty. I haven't overdrawn before or used such a facility so I would need to check on that as I am unsure how that works to be honest and what's involved. I don't have a credit card.

I need to get to payday at the end of the month and keep up with other weekly expenses - food/fuel etc. hence why if I can get a short term loan I can pay off the bill immediately, and can manage whats left in my account until payday.

As for repayment schedule I can pay back over 12 months.

Candyapple

Why do you have an empty Santander 123? So you are paying the £5 monthly fee for nothing? Downgrade your account to a non-fee paying one immediately!

Where did this unexpected bill come from? Bills are never unexpected. They are usually the same thing every month. Unless of course you are talking about something like a washing machine breaking down but even then - those type of emergencies should already be catered for in your budget so you don't end up like this.

Also, why would it take you a whole year to pay back £500? If money is really that tight, I strongly suggest you may want to post up a statement of affairs over on the DFW board and they'll be able to help you arrange a budget that works for you so that you are never in this situation again.

http://forums.moneysavingexpert.com/forumdisplay.php?f=76

I don't think the 123 account offers an overdraft because of the monthly fee but could be wrong. You would need to call them and ask: 0800 587 1122

Do you have any other bank accounts? If yes, call the bank and ask about arranging a new overdraft.

If you need the money before the end of the month you do realise that if you apply for a card, it may take up to 10 days to arrive.

If you are going to apply for a card, you need a money transfer card. Make sure this is the only card you apply for, anything else is useless to you. Here is the link to check your eligibility and apply:
https://creditcards.moneysavingexpert.com/?money-transfers&_ga=2.12878199.1786160369.1496739859-984807058.1496739858

Alternatively, can you not ask any family for the money?

StopIt

familyguy12 wrote: »

I have an overdue bill I need to pay hence the need for a loan of about £500.
I have a Santander 123 a/c which is basically running on empty. I haven't overdrawn before or used such a facility so I would need to check on that as I am unsure how that works to be honest and what's involved. I don't have a credit card.

I need to get to payday at the end of the month and keep up with other weekly expenses - food/fuel etc. hence why if I can get a short term loan I can pay off the bill immediately, and can manage whats left in my account until payday.

As for repayment schedule I can pay back over 12 months.

I asked my bank for a loan to cover a (Admittedly silly) purchase back in 2011 As I was refused a Buy Now Pay Later deal. They gave me £1,000 on the spot at 24.9% APR (So high, but nowhere near PDL territory). I paid it within 4 months and paid approx. £24 in interest, less than the £30 fee for the finance I was refused!


So yes, your bank should be the first port of call. They can usually deal with you there and then.


However, if £500 is causing you to fall into this sort of difficulty, and it'll take 12 months to clear, I'd suggest giving the DFW boards a quick look and looking into improving your I&E.


Once you've sorted this episode, try to save an emergency fund so this doesn't occur again.


The only reason why I am not suggesting an overdraft is because (And I could be wrong here) I think it may be difficult for the OP to get back out of the overdraft and it may cause problems as well as solving one.

DCFC79

Its always something unexpected, why is it overdue or how did it get to being overdue ?

Got no savings, how much money is left once all bills etc are paid ?

Yes definitely speak to your bank as suggested.

[Deleted User]

Don't do it unless you really are prepared for your credit affected for next 6 years. It just hammers it. Would love to say differently but can't. Even a 5 day change your mind and return will still see a foot print applied. It isn't a credit of choice for those who can borrow elsewhere, trust me.

Pixie5740

The Santander 123 account charges £1 a day for overdraft usage under £2,000 so that works out at £365 if you take 12 months to pay off the £500. Not much different to the lenders you describe as sharks.

If you could get a money transfer card with a low transfer fee such as the one offered by Virgin that would probably be the cheapest way to borrow the money.

However, I think it might be worth completing an honest statement of affairs and going over to the Debt Free Wannabe board instead.