22 Mar 2015

A question about : Loan Advice Needed

I looking for some advice on a taking a unsecured / secured loan.

I am coming to the end of a PCP finance deal with my car and my settlement figure at this stage is Ј9,600.00 I also have Ј4K on a credit card and I have an existing loan from my bank of Ј8K (now settlement figure Ј6K) that I took out last year to create a 3rd bedroom and new kitchen in my home.

I am looking to consolidate this all to 1 monthly payment by borrowing Ј20K. I had hoped my bank (Bank of Scotland) would have helped but they refused me, I also applied to M&S for a loan and they refused me also

I have no idea if my credit rating is good or bad, I assume its not great hence the 2 refusals. I did put my details on to The Loans Engine who found an unsecured loan of Ј20K (Rate Setter)- Ј483/month for 60 months (APR 16.9%) however not sure if paying circa Ј9K for borrowing Ј20K is the greatest of deals

I earn Ј52.5K PA and currently pay out Ј883/month on the 3 debts mentioned.

Best answers:

  • You can check your credit report for free here :
    although creditors use all 3 CRA`s (Experian & Equifax both charge Ј2 for a copy of your report).
    On paper you earn a good wage, however your debts take a Hugh chunk of your income, im not sure you will succeed in getting a 20 grand loan, as you have a lot of borrowing already, and its not an ideal way to clear your debts as whats to stop you overspending on cards/loans again and been in a worse position ?
    Better to see where you can make cuts in your other spending first rather than further borrowing.
    Try filling this in, then people can maybe help you make some savings :
  • Thanks sourcrates
    I will do the stoozing, looks like it could help
    However I don't think I want anything to do with Noddle (see below post on MSE for Noddle) anything asking for bank details I try and steer clear of
    I dont know if this is the right place to post, but here goes...
    Callcredit, who carry out credit checks, are in the process of setting up an 'new' company - called Noddle.
    They say that the purpose of Noddle is to provide FREE Credit Checks, PERMANENTLY. They say it is going through, or is now through its Beta stage - although you have to register for a 'phased' membership'.
    I duly registered and was emailed my invitiation to register. The link takes you to Callcredit - although they repeatedly warn / reassure that they're aware you're signing for 'FREE' Noddle.
    To prove ID you are required to provide card details. My Mastercard (PrePay) was not accepted (I should have stopped then) so, stupidly, I used my bank card! I made sure that I did not give permission for the card details to be kept.
    Over a week ago, I discovered that Callcredit had taken Ј12 from my account. Apparently they will continue to do this if I dont make them stop (or cancel my card).
    I emailed Noddle - no reply.
    Further Complaint - Reminder - Which earned an apology from Kirsty, with instructions to contact 'Callcredit', as it must have been my fault but I'd inadvertently signed up with them (Noddle checked their links before posting).
    Next day - Another reply (My complaint had been rather strong) from Gill this time, although she obviously had no idea that Kirstly had already replied. Strangely, their responses / blame shifting, were word for word identical.
    In the meantime, my emails to Callcredit were simply ignored.
    I resent my heavily highlighted complaint - to both companies - threatening Trading Standards / police, etc.
    Friday - Received reply from Rebecca at Callcredit - asking for copies of previous mail and responses from Noddle - so she could 'investigate'. I replied immediately.
    Today - Received reply from Kirsty at Noddle. Sorry - but (silly me) I must have joined Callcredit without using the proper link (err... NO).
    I've now sent email to both - with instructions to cancel, remove details and confirm actions.
    Have just this minute received e-mailed apology from Kirsty, who has arranged my removal from Noddle. She assures me that Call Credit will do the same. I await the latter's confirmation of receipt or action. They've yet to acknowledge any reimbursement.
    JUST TO WARN EVERYONE: Please DO NOT sign up for 'free' Credit Checks via Noddle (or Callcredit for that matter). They will take money from the card you provide - and will keep taking, on a monthly basis, until you notice the loss... Please also pass this warning on to friends. I hate to think how much they're making from this 'registration process'
  • I've used Noddle for a while now and haven't had a penny taken from any account.
    You need to check your creidt files, there could be something on there preventing you from getting credit and uless you check, you will never know. There is no pont applying all over the place and ending up with lots of searches on your account as this will damage your rating further.
    You could send off for the Ј2 statutory reports if you are not happy giving card details out.
  • [QUOTE=~Beanie~;65442697]I've used Noddle for a while now and haven't had a penny taken from any account.
    Yes ive had no issues with noddle at all, you have to provide card details to prove you are over 18, but they have never taken any money at all, I understand your concerns, and I am the same when it comes to things like this, but as I said, I have had no issues with them.
  • The finance company will normally write to you very close to the end of the deal and offer you a further loan for the settlement figure. VW always seem to offer a good rate and you could possibly negotiate the number of months to reduce the monthly amount, then pay additional amounts when you have the money. I've just started overpaying my VW finance but am concentrating on my ccs as the VW finance interest is lower than my credit cards. If you're with Audi then it may be worth a call to them.
    I think you will get better advice about the other bits from more experienced MSEers and from using the stoozing calculator. I personally wouldn't consolidate. I am overpaying my credit cards and have them on 6.8% apr for the life of the balance. I like that I can overpay or could reduce to the minimum if I ever need to. Feels 'neat' to consolidate but doesn't sound financially wise.
    Hope that helps.
  • Hope it's OK to butt in here - I couldn't find an appropriate thread to add to. I need an approx Ј12 loan for a new car and laptop and a few home improvements, but I have a bad credit rating, having defaulted on 5 credit cards last year. On the plus side, I own a house worth Ј160k outright and have a steady job on 19k p/a....where / who is my best bet of getting a loan?? Thanx in advance for any helpful advice.