Bridging loan - advice

neil_s

I’m seeking some advice on a short term liquidity issue.

I’ve only recently finished studying for a lengthy professional qualification, and moved into decent earnings in the past year or so. I’ve used the savings I made over the past year to become debt free, so actual cash in bank is pretty low. I was expecting a paycheque at the end of this month which now will be delayed (HR screwed up the contract), so might have short term liquidity problems.

My income over the next half year or so looks like:

£10k from fixed term contract (PAYE), spead over six months, starting now but first paycheque end of November.

£8k from fixed term contract (another employer) (PAYE), spread over eight months, started September but first paycheque may well now be November.

£37k from consultancy (self employed income), paid in equal instalments November, January and March.

Various other small bits and bobs.

My outgoings as basically nil as I’m living with family until I’m in a position to buy.

My thinking is to take out a small loan of a few thousand, then pay off early in November. Will this significantly adversely affect my credit file? Are there more elegant solutions out there?

I have the option of borrowing from family, which isn’t an issue at all but I prefer to be self-sufficient in these respects.

Thanks in advance!

jonesMUFCforever

Have you checked online with your bank to see what they can offer you either on overdraft, loan or credit card?
If there are offers on there it would suggest that they consider you trustworthy and creditworthy.

neil_s

I haven’t yet checked with my bank - I bank with Co-Op and their site tends not to chuck offers at you like others do (I’ve banked with HSBC and Barclays previously, so I know what you mean).

I have probably in excess of £30k available credit on credit cards, but more worried about bank balance for small direct debits etc.

System

In order do the following:

See if its possible to get an advance on the wages so you can get paid what you should've done this month.

See if the bank will arrange an overdraft

See if you have any money transfer offers on your cards to put some money into your bank account from them to cover the direct debits.

neil_s

Thanks for the reply.

It wouldn't be an advance as such - it'll be three months late because HR are incompetent. It's quite possible I'll annoy them into submission this week but unsure, hence the planning.

Is it not the case that cash advances on credit cards are not good on credit files?

Neither of you seem to think that taking out a bank loan and paying it off within a month or two having paid virtually no interest is a good idea - would you mind explaining why? My Experian score is 994 - I have no problems accessing credit at low rates.

forgotmyname

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