Not eligible for any sort of loan

Callumrayb

Hello, I might have an upcoming motorcycle purchase and was going to get a small loan of £1000 over 12 months but unfortunately no one will accept me, I have checked on the eligibility checkers. I have been using my 3 credit cards wisely for the last year and always paying them off in full at the end of each month. I'm only 19 so obviously my credit history is very small but I have no missed payments and no searches in the past 8 months. Just looking for some advice, thanks!


Income is £1500 a month roughly.

*Edit* forgot to mention I have an overdraft of £1500 which is currently at a £400 balance as I had a family emergency. I will be out of it by the 14th.

[Deleted User]

Callumrayb said:

Hello, I might have an upcoming motorcycle purchase and was going to get a small loan of £1000 over 12 months but unfortunately no one will accept me, I have checked on the eligibility checkers. I have been using my 3 credit cards wisely for the last year and always paying them off in full at the end of each month. I'm only 19 so obviously my credit history is very small but I have no missed payments and no searches in the past 8 months. Just looking for some advice, thanks!


Income is £1500 a month roughly.

*Edit* forgot to mention I have an overdraft of £1500 which is currently at a £400 balance as I had a family emergency. I will be out of it by the 14th.

£1000 over 12 months is a very short loan and will come with a high APR not least because you are young with not much credit history but to make it worth the lenders while.  The bank/building society will probably be your best bet for a loan but I think a money transfer credit card, if you are eligible for one or one of your existing cards will offer you this kind of deal, would be a less expensive option.  Less expensive still would be to save the £1000 instead of borrowing it in the first place.

Being in your overdraft doesn't look good to lenders.  I understand there was a family emergency but this is why it is so important to have an emergency fund rather than relying on credit.

John_

If no-one’s willing to offer a loan, and if you really need / want the bike (I bought my first motorbike at your age, which allowed me to take a job I could not otherwise have got to, so understand why it can be a necessity) then you could look at using your overdraft, but only if you are able to pay it off in a few months.

If you are already using some of it, then you have already been spending more than you earn, so you need to not only cut back enough to break even, but you then need to find another few hundred a month to pay it back.

The same would be the case with a loan, or course; do you already know where the money is going, and how much you can cut back?

DCFC79

Callumrayb said:

Hello, I might have an upcoming motorcycle purchase and was going to get a small loan of £1000 over 12 months but unfortunately no one will accept me, I have checked on the eligibility checkers. I have been using my 3 credit cards wisely for the last year and always paying them off in full at the end of each month. I'm only 19 so obviously my credit history is very small but I have no missed payments and no searches in the past 8 months. Just looking for some advice, thanks!


Income is £1500 a month roughly.

*Edit* forgot to mention I have an overdraft of £1500 which is currently at a £400 balance as I had a family emergency. I will be out of it by the 14th.

Got any savings ?
Being in the overdraft is a big issue.

Whats exactly on your credit history, any negatives other than the overdraft ?

What are your outgoings like ?
How much surplus do you have each month once bills etc are paid ?

Coveredinbees!!!!

What happened to the 8k of debt from March, if you paid that off in 5 months it won't take you long to save up another £1000. what happened about the potential driving ban from 2 weeks ago or has that gone away too?

foxy-stoat

Coveredinbees!!!! said:

What happened to the 8k of debt from March, if you paid that off in 5 months it won't take you long to save up another £1000. what happened about the potential driving ban from 2 weeks ago or has that gone away too?

Good grief.......at least the schools are going to reopen soon.

HampshireH

Yup OP definately contradicting his other posts..... which also contractict those other posts.

Has an income in his previous SOA and no benefits, then claiming high benefits. Had 8k debt now has none and a good history of paying credit cards on time for the last year, yet that was March and it's only september.

I wish people who put up random posts stayed consistent with their stories.

Callumrayb

Thanks for your replies. I'm not being inconsistent, the 8k debt is in my mother's name which I pay £206 a month for, like I said it's a potential bike, for when the court date comes.

Callumrayb

The main debt is amigo which is in my mother's name, it is 4.2k still. The bambo loan is a guarantor loan with a balance of £1100. My credit cards have all been paid off. And my overdraft is still currently at £400.

MalMonroe

I'm a bit confused but I think that's to be expected.

If you can, you need to try to get the amigo debt moved to another lender. Any other lender, or that is never going to be paid off. 

Never but never, add more debt to debt you already have. I learned that lesson the very hard way, ended up having to have a DRO and 6 years of financial misery.

The fact that you are living off your overdraft and that your amigo loan is in your Mum's name is worrying. There's no way you can get a motorcycle yet. And for me, bearing in mind that one of my best friends has just lost her brother to a motorcycle accident (not his fault) that's not a bad thing. 

Instead of looking for even more debt, why not contact one of the debt help agencies? I'm always harping on about it but they got me out of a terrible debt spiral 7 years ago when I didn't know which way to turn.

I used StepChange. https://www.stepchange.org/    You won't regret it. You are being refused credit for good reasons and you have to sit up and take notice now before it's too late.

foxy-stoat

If your credit cards have been paid off then just use them then, you must have thousands of pounds worth of credit still to use, and while your at it money transfer £4.2K and clear your Amigo loan in your Mums name.