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I keep getting declined for loans and have no money until I get paid. What can I do?

I keep getting declined for loans and have no money until I get paid. What can I do?
~ Lee from Blackburn.

Answer:
Hi, if you keep getting declined for loans then the chances are that your credit score has taken a bit of a battering and so I would give it some time before applying again. The exception would be if you can use a guarantor or logbook loan. With guarantor loans you need to find a family member or friend who can back your application. If you can do this then your credit score isn’t really an issue. They will conduct a search simply to verify that you aren’t currently bankrupt or on an IVA. Most logbook lenders offer no credit checks, but obviously you would need a car that qualifies with them (typically under 10 years of age). If you just need some extra cash until you next get paid then a popular option would be to use a pawnbroker loan. You can do this for instance against your laptop or your mobile phone. Whilst H&T is one of the most well known companies, you can just pop into a Cash Converters or Generator store and use their buy-back schemes. Cash Generator is known to be a little more competitive on pricing. You will be offered a 28 day repurchase option and per £100 you would usually have to pay back £32 interest regardless of which day you repay. I will check up to see if they are affected by the FCA capping that would mean that you would pay much less from 2015 onwards. Most pawnbrokers claim to purchase items at 70% of their value and all that’s required to be taken in is some basic identification such as a driving licence and a utility bill with your address on. No such credit checking is conducted.

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