To loan or not to loan

Gord86

Hi all,

Firstly a big thanks to you that help.

I'm new to the forums here and a new debt free wannabe!

Ok a little about the situation, i have a low credit score of 608 which makes it hard to find credit obviously, i'm 21 live at home and have a low payed job. I'm currently earning on average about £150 per week after tax as a barman. However this does fluctuate alot. I'm currently studying to be a webdesigner which is costing me a fortune as it is as it's from home and has to be payed for by me.

The main problem i'm having is i have a Welcome finance loan (i know what an idiot i am) and Hp for my car, both of which are very high apr and i'd like to get shot of. i have £3000 inclusive of interest to pay on the loan, and a further £400 left to pay on the car. I also have a capital one card with a £100 limit on which i use cautiously to help build up my credit rating.

I'm paying out a total of £300 a month just for the loan and hp and would love to reduce this, is there anyway i can get a loan? or does anyone have any advice on what i should do? I'm currently up together on payments (3 missed with the last 12 months) but the amount im repaying is crippling me as i only have about £50 a month for myself.

Anyway thanks for any advice and sorry for going on!

Gordon

GeorgeUK

It's a pity you've missed or had some late payments. Normally, i would advise trying to get a 0% SBT card like virgin money. It allows you to do a balance transfer to a CC or your current account. This would mean you would have money in the current account with which to pay off the loan. BT fee of 3%, min payment is 3% for 1st month but 2nd to 15th months min is £25.

If you haven't applied for any credit recently (you can usually have about 3 searches within a 6 month period) it may be worth applying - you never know. Also contact Welcome finance and see what the settlement figure is for the loan (there is usually an early settlement fee but this is less that the amount of interest you would have paid).

I would only do this if you were not going to apply for credit later. If you get turned down - don't keep applying. Leave it a few months before trying to get more credit.

Are you on the electoral roll at your address?
You can check your credit file free at experian (if you cancel within 30 days). The credit score that these agencies give are not very reliable however and i would not advise paying to see your credit score. Different organisations have different criteria to work it out.

Rafter

Gordon,

Check you are not entitled to any grants to study at home.

Check you aren't entitled to any tax credits and your tax code is right.

I think your chances of getting a loan are slim, unless your parents or someone else will act as guarantor for you.

Otherwise it is going to be a case of trying to find a better paying job. Have you looked at supermarkets for evening work? might pay better than the bar and offer you more hours?

Good luck

R.