a loan?

Laddey

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Hey all, i'm here again with another problem.

Well, i'm skint. So i was thinking about getting a loan from the bank, i'm in full time employment and i've got all my pay slips and proof of address and all that stuff.

What do i actually need to qualify for a loan? I'm looking for around a thousand pound for my test and car/insurance. Any ideas all?
 

tris-

Failed Geordie and Parmothief
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credit is freely available these days, doubt youd have a problem.

i managed to loan £1k when i was on about £750-£800 a month
 

Laddey

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credit is freely available these days, doubt youd have a problem.

i managed to loan £1k when i was on about £750-£800 a month

Cool, i'm only one 200 bob a week. I once had a contract phone. Eventually i paid it all off. Would that give me really bad credit, meaning i can't get a loan?
 

tris-

Failed Geordie and Parmothief
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no doubt you will get a loan i think (youre in the same position i was), if your credit is bad you might pay higher interest though.
 

Laddey

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no doubt you will get a loan i think (youre in the same position i was), if your credit is bad you might pay higher interest though.

Sweet, so i can get my hopes up? Family say don't get your hopes up incase they tell you where to get off.

260 quid for a intense driving course, 3days driving + practical.

Rest for car/insurance. Good enough excuse tbh.
 

old.Tohtori

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Well, as a previous loaner, i'd say "don't!".

But that was 'cause i was fired and was stuck with the loans.

Only things i'd say you should get a loan for(skint not being one of them) is for a house/apartment/car.

That's about it.

If you can avoid it, do. If you just CAN'T, at all, then take as small as possible.
 

Laddey

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Well, as a previous loaner, i'd say "don't!".

But that was 'cause i was fired and was stuck with the loans.

Only things i'd say you should get a loan for(skint not being one of them) is for a house/apartment/car.

That's about it.

If you can avoid it, do. If you just CAN'T, at all, then take as small as possible.

Yeah, it can be avoided but; Once i get my license then theres so much opportunity out there for me. Loads of freedom aswell. I can't wait another 8 weeks for my test date !

Thanks for the advice though ;)
 

old.Tohtori

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Yeah, a loan seems like a good idea at the time "Sure, i got money to pay it", but without thinking of the "what if" worst case scenario, one shouldn't.

Suddenly off from your work, stuck with loans you can't pay, they get all kinds of "late" payments to them etc.

Suddenly that little "500 quid loan" is up to a 2000 debt and no way of paying.

Always have to warn people, if nothing else, to avoid people taking a loan "just 'cause".

Also good advice is to pay it off asap. As in, take a loan, pay it back in month/two months. That way you save even more.

Also don't be fooled by the bank, anything they say is to get more money off you.
 

Golena

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Laddey said:
Cool, i'm only one 200 bob a week. I once had a contract phone. Eventually i paid it all off. Would that give me really bad credit, meaning i can't get a loan?

As stupid as it sounds the best way to get good credit rating is to get a credit card, pay nothing at all on it until they notice then pay it all off. If you simply don't abuse credit then you actually have "no credit rating" not a "good credit rating".

These days just about anyone can get a loan, the only thing your credit rating does is decide how much interest your going to pay on it.

Seconding what teh seel says tho.. if nothing else your going to be paying back lots more than you actually borrow so unless you need to borrow it, or will make lots more money from having the money than waiting it's best to simply save up then buy instead. If you even start struggling to make payments back then a £30 per week debt very quickly becomes a £100 a week late payment nightmare so make very sure you can afford the repayments no matter what.
 

Thadius

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Id say get a loan, so many jobs open up to you when you have your license and even if you go for a job that doesnt involve driving, they always look to see if you can drive. o_O

One of the odd things I was told at school
 

gohan

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if u cant get a loan get a credit card, i got my first credit card an got a 1k limit on it, platinum an shiny too

i dont intend to use it just want to flash it every now an then an feel all growed up
 

Lamp

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How about borrowing it off someone ? A friend ? A family member ? A relative ? Same as a loan = ie you get the cash and it has to be paid back, but none of that admin or nasty paperwork, and you won't get fucked if you can't pay it back on the/each repayment date.
 

Hawkwind

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Actually helps to build a good credit history by taking small loans out etc. Just make sure you can pay it back. Try your bank first see what they offer, then shop around. Same for any kind of loan/mortgage/investment really.
 

old.Tohtori

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How about borrowing it off someone ? A friend ? A family member ? A relative ? Same as a loan = ie you get the cash and it has to be paid back, but none of that admin or nasty paperwork, and you won't get fucked if you can't pay it back on the/each repayment date.

This is actually sound advice. More then often it's a case of "pride" though, and people will go to banks instead of asking family/friends.
 

Lamp

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Action Plan: try to somehow become best buddies with Bill Gates or the Sultan of Brunei.

(True story: some artist dude went to some oil-rich Arab country and painted a picture of some billionaire oil magnate there. The sheik saw them, was so impressed, he commissioned him to paint a load more (think it was 10 - not that many) - and paid him $20 million for them !! Nice work if you can get it)
 

tris-

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As stupid as it sounds the best way to get good credit rating is to get a credit card, pay nothing at all on it until they notice then pay it all off. If you simply don't abuse credit then you actually have "no credit rating" not a "good credit rating".

there is a better way. use your CC as a debit card. spend what you can afford and clear the balance each month. you wont get charged interest that way. and what do you mean untill they notice? do you think they just check the accounts once a year and then send out a bill??
 

Gamah

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Actually if you miss a cc bill by a month it goes down as a late payment on your credit score.

so don't listen to the "till they notice person"

But if you can avoid getting a loan do so. I got into a lot of shit when I was younger :p
 

Mey

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I don't know why people have this misconception about Loans.

A Loan is far more secure and cheaper than a Credit Card. Credit Cards usually have very high interest (sure you get some 0% for a few months but after that bang straight up to the high rate.) I can't think of an example of the top of my head, but alot of the time if you just pay the mini payment on a credit card I'd say 3/4 of that which you have paid of is Int.
 

Mikah75

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loans are like 20-30% too.. so works out 1/4 too actually
 

Hawkwind

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Action Plan: try to somehow become best buddies with Bill Gates or the Sultan of Brunei.

(True story: some artist dude went to some oil-rich Arab country and painted a picture of some billionaire oil magnate there. The sheik saw them, was so impressed, he commissioned him to paint a load more (think it was 10 - not that many) - and paid him $20 million for them !! Nice work if you can get it)

When I lived in Hong Kong used to be mates with an Engineer who once worked for the Sultan. He had 4 aircraft and used to fly them himself. Mate said he would pitch up and just decide which he wanted to fly that day. One of his aircraft, an A340, recently had a new interior fitted at a cost of over 120 million USD! Now that's rich!

See interior here:
http://http://greatkalli.blogspot.com/2007/04/sultan-of-bruneis-private-airplane.html

He also once bought every family on Brunei a new fridge.
 

gohan

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loans are like 20-30% too.. so works out 1/4 too actually

loans are like 6-12% credit cards are 14-30%

and with like a 1k balance on a card paying mimimun pay ment it takes like 12 years to pay it off an u pay like 5k off in them 12 years cos of interest
 

Calaen

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Go to your bank Laddey, they will sit down and have a chat with you about it. By using a bank you are in effect building up a relationship with them, they will be able to see your wages/spending habits and give you a loan accordingly based on your needs.

Just to cover a little of what Toh was saying, getting a loan and not being able to pay it back due to loss of job is an easy way to get into difficulty. Always make sure you have some form of cover in place to cover you for loss of work or critical illness

My advice for just a 1k loan is this. Dont bother getting the insurance, it will add another 300+ on top of the loan increases the interest as well. If you were to get a bigger loan either take the insurance or make sure you have adequate insurance for sickness at work in place.

Credit Cards are great if you are good with money, however I have had many a friend get themselves in financial trouble due to spending money they did not have on credit cards.
 

Mey

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loans are like 6-12% credit cards are 14-30%

and with like a 1k balance on a card paying mimimun pay ment it takes like 12 years to pay it off an u pay like 5k off in them 12 years cos of interest

See here is a man that understands..

Loans are not this evil wicked thing people make them out too be..

If you have shed loads of debt on credit cards my advice, get a loan to cover all of them pay all the cards off, cut them up, cancel them. And start paying back the loan. You will end up saving yourself loads and have more cash to spend during the month also. Due to one payment not many..
 

Thadius

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Also, shop around for your best loan.

And if you have your "loan" money sorted, stick it in a 90 day high interest account while you find your car. Should have around 100 quid to flash about(not 100% sure on the rates)
 

old.windforce

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loans are like playing easymode with the knowledge the nerf bat is coming


aka stupid
 

Mey

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And why are loans stupid mr. 5 credit card maxed out paying £1 of the actual balance each month*?


*this may not actually be you.. but it's the usual person who thinks loans are stupid..
 

gohan

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Also, shop around for your best loan.

And if you have your "loan" money sorted, stick it in a 90 day high interest account while you find your car. Should have around 100 quid to flash about(not 100% sure on the rates)

or better still dont take the loan till ur ready to pay for the car :p
the most ull get on a short term savings account is like 5% whereas ur likely to be paying 9% minimum on ur loan at ur age ect so still losing money



mey u think from this thread that we can tell the sad basts that have to work in a bank :<
 

Marc

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Get a credit card.Spend the £1k. Then get an RBS credit card which has 13 months interest free for balance transfers. Transfer the £1k across. Voila, £1,000 interest free.

Hey Mey, good news about the banks stopping paying out on bank charges eh? Good job I got my £1580 3 days before they stopped and my mate got £5,600 1 day before eh :D
 

gohan

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Get a credit card.Spend the £1k. Then get an RBS credit card which has 13 months interest free for balance transfers. Transfer the £1k across. Voila, £1,000 interest free.

Hey Mey, good news about the banks stopping paying out on bank charges eh? Good job I got my £1580 3 days before they stopped and my mate got £5,600 1 day before eh :D

all i can say to that is if u have managed to ammount 1580 in bank charges and ur mate 5600 then ur both shit with money, take some responsibiliy an stop blaming banks cos u spend more than u earn but have nothing inplace to allow you to
 

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