looking to borrow £7000

Jack_Gleeson

hello all im looking to borrow around £7000 via loan and im wondering what would be the best way to go about it, i currently earn 13k a year whch is about £1200 a month but i do over time and sell items on ebay which takes it up to about £1400 a month which isnt to bad considering im 20, anyway my outstand debts are as follows

barclaycard limit £500 Debt £100
capital one limit £500 debt £181
egg loan debt £1178


so in total im in about £1500 debt, im looking to clear this debt with my £7000 loan and do get myself a car and other things and pay off a year on the insuarance of the car, anyways im wondering will it make any difference if i clearn all my debts before i apply for the loans or should i apply now, ive applied for two loans the money back loan and a AA loan but been declinded on both, anyone got any ideas what is best, thanks alot.
also i was told if i clear my egg loan they might give me a loan cause it shows i can keep up with the payments, i havent missed apayment with egg and i also cleared my egg card which i had with them, will this help ?
Jack

HelenR_3

So you dont need the loan money to pay the debts off ?

Youre overestimating on your wages Jack , Its about £1008 a month before tax
Get in touch with experian and equifax to take a look at your credit reports , before doing any more applying , as too many applications will damage your credit score.
Also , the best way to get a loan , at your age , with limited credit history isnt going to be one of the `premium` loans , you may be better off going to see your own bank.

H

asandwhen

1200 a month 13,000 ?? ??
I want your tax code im on 25,000 and only take home 1500 (minus pention though)
When I was on 13,000 i think i used to take home about £800.

Rafter

Easy guys - Jack wasn't asking for a challenge to his salary calculations!

Back to your original question Jack, things like the moneyback loan are designed for people who are very low risk. These tend to be people over 25 with above average income, homeowners and with a good credit history. Unfortunately you are just going to get refused for these loans for now because your don't score highly enough.

Borrowing £7k when you only earn £13k might be tough for you. Are you sure you wouldn't be better off with a £3k car for a couple of years until you have built up some no claims discount and your salary has gone up?

Also be really careful about using something like a 3-5 year loan to pay an annual insurance bill. You really don't want to be paying off this years insurance in 5 years time.

Here is my advice:

1) Try to clear both your credit cards each month. Given the limits I imagine these are initial or credit builder products with 25% plus interest rates.

2) Speak to your own bank or egg about a car loan and see what deal they can offer. Make sure you can afford the repayments, and the running costs of the car. Make sure the APR is sensible.

3) Think about a more modest set of wheels until your income improves.

4) Dont' be tempted by the likes of 'yes car credit' or other providers who will charge you an extortionate rate of interest.

Good luck.

R.

Jack_Gleeson

thanks alot Rafter i think ill do that, i think im just gonna clear my debts off and then decide then what i wanna do