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Need some elders advice regarding..


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a Loan!!!

Right at the moment i am kind of broke which means i cant go out and buy another car as i have recently written off my c70 which i took in P/X!! However i do have just the little bit over £2.5k in my account which i do not want to spend as im saving up!

The question is how would i go about getting a loan for about £1200-£1500?

I've been a barclays customer for over 2 years if that means anything? Im only 19 so my knowledge in this aspect is very limited!

I've been on 'moneysupermarket' and got a few quotes which seem alright but i don't get the whole good,bad and fair credit rating system. I was thinking should i just send an application off to sainsburys with the amount i am after and see what happens?

Also last but not least, what kind of proof do they usually ask you to provide?

Any input related to this matter will be highly greatful. Thank You in advance. Amin

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Credit rating is system that builds up info on your spending and what debt you have and how well you make payments.

It may have changed, but having loads of debt but managing to keep making the payments ok means you end up with a good credit rating, go figure. But essentially the system is to allow the people lending the money to understand how much ruisk they are taking, i.e. will/can you pay it back.

There is a way to find out what your credit rating is but can't remember it for the life of me.

Also things like having CCJ's (county court judgments) outstanding will typically instantly blacklist your credit. Wife had this happen about 10 years ago due to idiots at direct line being unable to deal correctly with an insurance claim, but that's another story :p . Result was that we tried to by a new bike (cycle) for her using offered buy now pay later type scheme which is essentially a month interest free credit card, only the credit card application was declined due tyo the outstanding CCJ she had because direct line were incompetent. :winkin:

As for getting a loan, yep shop around and find the best deal, it won't necessarily be with your bank, and yes, just fill in ghte form and bang it in, they will either give you the money or not. If not they will usually give you a reason why.

Also think carefully about payment protection as it costs a lot and is a big con unless you have real job uncertainty etc, and read the small print about when it does/doesn't payout etc. Personally I've never bothered with it. Except on my first ever loan (for a car) when I was about 21, and realsied at that point it was a con and have never had one since.

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before applying for any loans go on experian credit expert website

you can pay to see your credit history and get a credit score

the score is out of 1000 so the higher the score the better

once you have your history you will know your likelihood of getting a loan based on your rating - if you are of a medium rating experian can link you to lenders more likely to give you the loan

bare in mind the more loans you apply for each time you do this will go on your rating and could have an adverse affect if you have applied and been declined for several loans

so do the above first before applying and you should be fine:thumb:

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For that amount you might be better off getting an agreed overdraft increase - the rates for an overdraft are comparable, if not better then, a loan in many cases. Beware of the small print when going for a loan and make sure if you do that you go to a reputable company!

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