Need to borrow £1,000 - Best way?
Need to borrow £1,000 - Best way?
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Discussion

Ki3r

Original Poster:

8,893 posts

189 months

Thursday 22nd November 2012
quotequote all
I need to borrow £1,000 for a couple of months. What is the best way of doing this? Its for a one of payment (most likely less than £1,000).

My first idea was a 0% credit card, but would I get one at 23 with no real credit history? I've had a overdraft in the past (£550), and have a phone contract, if that makes a difference?

I was planning on paying £100-£200 a month.

My next idea was a bank loan. Having a quick look, I can borrow £1,000 for a year, and only pay back around £100. Again, would I get one at 23 with no credit history? Payments are just under £100 a month, but none seem to allow me to pay it off early (which I should be able to do).

I could see about an overdraft. My bank (Halifax) used to charge £1 a day when I had my £550 one. No idea if I opened a new bank account they would give me a £1,000 overdraft straight away. So don't think this is a possibility.

Does anyone have any ideas on how likely it is I would get either of the above, and which one would be best?

Borrowing from parents/family isn't possible (for my bike license before they change the rules, parents don't like the idea of me getting a bike rolleyes.

Thanks smile.

Lawrence5

1,254 posts

265 months

Thursday 22nd November 2012
quotequote all
I'm sure you'd get a credit card or overdraft (maybe free) with the right bank as long as you have a salary....

I'd start with your own bank as they know you best

steve_bmw

1,591 posts

205 months

Thursday 22nd November 2012
quotequote all
bank load would be best!
but for the love of god dont go to wonga or any other outfit with simular stupid name, ok amigo!

Ki3r

Original Poster:

8,893 posts

189 months

Thursday 22nd November 2012
quotequote all
steve_bmw said:
bank load would be best!
but for the love of god dont go to wonga or any other outfit with simular stupid name, ok amigo!
Ha, I'm not that stupid xD.

Forgot to mention that I'm working full time, take home around £1,000 after tax.

Newc

2,195 posts

212 months

Thursday 22nd November 2012
quotequote all
Have a look at Zopa; early repayment is fine there.

Otherwise your least bad choice if you are very sure about your ability to pay back the lump sum early is probably a credit card with your bank.

Dakkon

7,833 posts

283 months

Thursday 22nd November 2012
quotequote all
Wonga.com wink

Wacky Racer

41,381 posts

277 months

Thursday 22nd November 2012
quotequote all
Dakkon said:
Wonga.com wink
nono

okgo

42,255 posts

228 months

Thursday 22nd November 2012
quotequote all
I'll lend it you at 10% over a year.


Ki3r

Original Poster:

8,893 posts

189 months

Thursday 22nd November 2012
quotequote all
Been approved for a Tesco credit card. 0% for 16 months. £2,000 limit (which I'll reduce to £1,000 once I've got it).

Paperwork will be sent within the next 7 days, sign it and send it back. Then get the card 7 days after that.

Going to go though the paperwork with parents once it here to make sure I have understood it correctly.

Little bit scary how quickly I managed to get one though!

Thanks for the help smile.

groak

3,254 posts

209 months

Thursday 22nd November 2012
quotequote all
okgo said:
I'll lend it you at 10% over a year.
I could be looking for a loan soon. I'd have some of that.

walm

10,644 posts

232 months

Friday 23rd November 2012
quotequote all
Just be careful on the credit card.

If the thing you are buying can be bought directly on the card then fine.
But if you have to take CASH out off the card and then pay for your purchase - they will up the charges significantly.
Read the small print on cash advances.

Also - if I were you I would make the purchase and cut up the card right away. Then just pay off the balance ASAP.
Otherwise, if you are anything like me, you will spend up to the £2k limit in no time!!

Pickled Piper

6,452 posts

265 months

Friday 23rd November 2012
quotequote all
walm said:
Just be careful on the credit card.

If the thing you are buying can be bought directly on the card then fine.
But if you have to take CASH out off the card and then pay for your purchase - they will up the charges significantly.
Read the small print on cash advances.

Also - if I were you I would make the purchase and cut up the card right away. Then just pay off the balance ASAP.
Otherwise, if you are anything like me, you will spend up to the £2k limit in no time!!
This exactly. It's a great way to borrow if you have self control. Also, the provider is "betting" on you not having any self control.

pp

Ki3r

Original Poster:

8,893 posts

189 months

Friday 23rd November 2012
quotequote all
Once I've paid for it and passed, the limit will be going down. Chances are to around £250. As I'm a bit of a Tesco Clubcard we and can get 5 points for every £4 I spend on fuel. I spend £250 a month as it is, so will just use that instead.

Won't be withdrawing any cash out!

spikeyhead

20,528 posts

227 months

Friday 23rd November 2012
quotequote all
groak said:
okgo said:
I'll lend it you at 10% over a year.
I could be looking for a loan soon. I'd have some of that.
Somethings gone wrong if you're after a grand.

Teddye4687

377 posts

178 months

Friday 23rd November 2012
quotequote all
OP, of you want to buy something and you can buy by card, get a credit card with 0% interest on purchase for 12 months.

If you need the cash, get an MBNA credit card which has 0% on balance transfers for 12 months. MBNA allow you to transfer the money direct to your bank account for around 3%