Payday UK - Short Term Loans

funky1471

Hi guys,

I am in a pickle this month due to my used car going faulty and getting a refund for it, to cut a long story short I have had to spend money on tax for TWO cars this month, it was £180 per car (I am waiting to get a refund on the tax from the first car - had to claim this from DVLA), also had to buy the car for £2300.

I have bills coming out tomorrow and monday which total more than I have in my account and I have no overdraft.

Anyway basically I have money coming into my account next week, about 1k. I saw a site paydayuk who give a short term loan and take out the money on your next pay day, but they charge £25 for every £100 that you loan.

I have 2 questions:

1) Does this have an extreme negative effect on your credit rating? Mine is currently good and I would not like to ruin it. Does it look desperate or is it just the same as any personal loan except its over a short period??

2) It says you have 14 days to cancel the agreement in writing, in which case you need to pay back the full amount you originally borrowed immediately. If I borrow £200, then cancel it next week when I have money in my account to pay back the £200 I should avoid the interest right??

Also if you cancel an agreement does it get wiped off your credit history? I know the search for credit would still be on there, but would anything else go against me apart from having a search for credit?


If you can help thats great. This seems like the only way to make the money back as I do not have credit cards to take the cash out of or anything like that. I am usually fine with my money but this month is all messed up and I don't want fines.

osmonddiva

funky1471 wrote: »

Hi guys,

I am in a pickle this month due to my used car going faulty and getting a refund for it, to cut a long story short I have had to spend money on tax for TWO cars this month, it was £180 per car (I am waiting to get a refund on the tax from the first car - had to claim this from DVLA), also had to buy the car for £2300.

I have bills coming out tomorrow and monday which total more than I have in my account and I have no overdraft.

Anyway basically I have money coming into my account next week, about 1k. I saw a site paydayuk who give a short term loan and take out the money on your next pay day, but they charge £25 for every £100 that you loan.

I have 2 questions:

1) Does this have an extreme negative effect on your credit rating? Mine is currently good and I would not like to ruin it. Does it look desperate or is it just the same as any personal loan except its over a short period??

2) It says you have 14 days to cancel the agreement in writing, in which case you need to pay back the full amount you originally borrowed immediately. If I borrow £200, then cancel it next week when I have money in my account to pay back the £200 I should avoid the interest right??

Also if you cancel an agreement does it get wiped off your credit history? I know the search for credit would still be on there, but would anything else go against me apart from having a search for credit?


If you can help thats great. This seems like the only way to make the money back as I do not have credit cards to take the cash out of or anything like that. I am usually fine with my money but this month is all messed up and I don't want fines.

I cant help with your questions but we used them once and even though they say money in your bank the same day we found that not to really be the case, as once you submit the application it has to be confirmed or something, ie we applied on a fri and money did not appear in bank till following tues. So if you need the money today or tomorrow I would say its a bit risky. At times like your facing I am more prone to cancel payments from bank and then rearrange them, saves paying fines or going overdrawn

CHR15

Cant you just pop into your bank and explain??

If you have been a good (low risk) customer, I am sure they would set up an overdraft there and then

funky1471

CHR15 wrote: »

Cant you just pop into your bank and explain??

If you have been a good (low risk) customer, I am sure they would set up an overdraft there and then

I think that will be the best thing, i'll go now and see what they say. But before I do does anybody know roughly what the interest is that they charge on an overdraft? It is at Halifax and if I pay the money back within a week will the interest be reduced?

How do they charge the interest? Do they take it out of your accounts balance at the end of each month?

funky1471

I can't get the overdraft on my account because I have not upgraded it to a current account yet. I get paid less than 1k a month after tax so never seemed worth it. I am 21 by the way and full time student/full time work.

I have applied for a current account and they are setting that up for me but probably won't be done in time. I'm sure I will sort something out though. It's just this next week where I am stuck as usually i'm fine.

lynzpower

Can you not get a student account- generally these seem to have pretty good overdrafts as standard