Personal Loans

Tom L

Tom L

Tom L

Associate
Joined
18 Oct 2002
Posts
1,548
Location
Cheltenham
I currently have a 4k loan outstanding with HSBC, who I've been with for 10 years. I've missed some payments and had some cheques bounced within the last 2 years with them and I know they assess my personal file when doing credit scoring, but the last 8-10 months have been fine.

I recently got accepted by Egg credit card, who are known to be quite strict on assessment so hopefully I'll have a chance to get an additional loan somehow.

The question is, do I find another bank and take out £10k which will pay off my HSBC loan and give me leftover for a new car, or have I got more chance to go back to HSBC to ask for additional money?
 
Hmm... you've missed payments in the past, and had cheques bounce, yet egg has given you a credit card.. So much for egg getting shot of risky customers..!!!

Sorry mate, not to call you a risky customer, but it does boil a bit when my egg card was recently cancelled due to me being a 'risky' customer as I paid my bill on time, in full each month.

Wouldn't you be wise to just keep up the payments on what you've got, use the credit card for a few months and NOT keep a balance on it, then look at this again, as missing payments puts a mark on your credit file, but by demonstrating you are trying to control your finances it will look better when trying to secure such large funds.

You also need to ask yourself, why did I miss those payments, lack of funds, poor many management? Not to stick it to you as it were, but getting into debt is easy, getting back out again, the ramifications can be massive, sometimes effecting your health with unneeded stress etc..
 
iv-tecman said:
Sorry mate, not to call you a risky customer, but it does boil a bit when my egg card was recently cancelled due to me being a 'risky' customer as I paid my bill on time, in full each month.
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Yeah I read about this on a news site somewhere. Apparently most of the people who had their card cancelled weren't 'risky' customers at all, just the least profitable. At least thats the conclusion said news site came to.
 
You will have more of a chance getting a loan from another bank as they want your business and together with wanting to pay your HSBC one off, they will be a little bit more willing.

Barclays have some good APR on loans at present.
 
Wiggins said:
You will have more of a chance getting a loan from another bank as they want your business and together with wanting to pay your HSBC one off, they will be a little bit more willing.

Barclays have some good APR on loans at present.
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Excellent, thanks for the info. I can see in most places that you can apply online, but would it be better going into a branch or calling them to explain that the loan is 1) to pay off my HSBC loan and give my business to you and 2) for a car, or does will that make any difference?
 
As to "dare I say it" nothern rock.

Skip HSBC, although your missed payments wont reflect your national credit score (as you've found out), it will have blemished your HSBC record for a long long long time.
 
Northern Rock are quite good for people who haven't got the "greatest" history, aren't they?

Alliance and Leicester are offering 7.4% on a 10k loan.
 
Despite the above I suspect your Credit Score wouldn't be that bad. You can always ask experian for your credit report and you can see for yourself.

I would suspect you have a fairly decent APR with the HSBC loan if you've had a few years maybe Circa 5.5% APR so to potentially replace this with a higher APR loan (if that applies) doesn't really make sense to me.

HSBC may give you preferential treatment being a customer but your past history 'may' work against you here.

As always make sure you can cover the repayments of the loan and don't wham that egg card too much?

Checkout Moneysupermarket.co.uk & fool.co.uk both offer excellent financial information

PS egg and most credit card issuers are after people like you at the mo whom I suspect will not pay off their balance each month as this is basically the only way they can make money - those who clear balances each month do not yield any benefits to them at all.
 
iv-tecman said:
So much for egg getting shot of risky customers..!!!

Sorry mate, not to call you a risky customer, but it does boil a bit when my egg card was recently cancelled due to me being a 'risky' customer as I paid my bill on time, in full each month.
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You were losing them money. They will gladly take on customers who will make them some money via missed payments & interest.
 
When looking to apply for a personal loan, is it wise to submit a couple of applications, or just stick with one?
 
Tom L said:
When looking to apply for a personal loan, is it wise to submit a couple of applications, or just stick with one?
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Just be wary each time you apply you'll credit history will be searched and a log will be made on your credit history, the more records in a short space of time the more warning lights appear on your record.

Personally I wouldn't make more than 2 or 3 attempts
 
And dont use the likes of moneysupermarket or any other search engines. They do state that the one check will be done by them but the smallprint does say that you give authorisation for others to do it aswell. For example all 20+ of them.
 
Wiggins said:
And dont use the likes of moneysupermarket or any other search engines. They do state that the one check will be done by them but the smallprint does say that you give authorisation for others to do it aswell. For example all 20+ of them.
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He can still use that website to do an overall quick search across the market though ! Just approach the lender direct if he sees anything he likes the look off
 
I got a loan through my bank at 9.5 % APR. Everywhere else was >10%.

EDIT - all the really good deals (<8% APR) seem to need you be a home owner with good credit rating.
 
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