Hullo.

I am trying to buy a motorbike and christmas pressies and such, and quite need about 750 quid. I am full-time employed, making 900 quid per month. I haven't been at the job long, as I just graduated university. The main problem is I have a fairly recent (i.e. under 6 months) default on my credit report due to a dispute I have with Orange. I've settled the default, but it is obviously still on my report (but that's a whole other question....)

Now, I am trying to find a 750 quid loan repaid over 18 months. I would like something with no (or low) early repayment penalties, as I would ideally like to pay it off sooner. I got a quote off YES, but have discovered what con-artists they are and have not (and will not) send them their 50 quid. I was thinking about Barclays (with whom I have a graduate account) Graduate Loan. Good idea? Think I'll get it? I've had an account with them for 9 years, and apart from the default, have no credit problems...

Help! 

Hi

I think your bank should definitely be your first port of call. The default will make obtaining a loan very difficult as it is so recent.

If your bank can't help, use the Smart Search facility on MS.com to search for lenders that best fit your credit profile.

Good luck

Thanks for your advice. Obviously, it is difficult to shop around for a loan, as to get a quote leaves a footprint on my report, lowering my chances of getting a loan. Is there any way to get quotes WITHOUT leaving the footprint? For example, I got Motorcycle insurance quotes from eight or nine companies before picking one to agree with, without any negative consequences (apart from a HUGE increase in spam in my email inbox!).

What do you reckon the chances of my bank giving me a loan are? I have just checked my credit report, and the default is now (since yesterday...) marked "satisfied". Will this help? 

Unfortunately not. Lenders will advertise a typical APR but the rate offered will be dependant on your own personal circumstances, so a credit check needs to be done, to firstly see if they can offer you a loan, and secondly, if approved, what rate they can offer you. As a rule of thumb, upto 3 searches in a 6 month period shouldn't effect you.

Your bank is always worth speaking to first as you have a relationship with them already, but as the default is very recent it will seriously impact the APR if you are succesfull. There are lenders that specialise in adverse credit so using the SmartSearch if unsuccessful with your bank is a good idea.

Thanks for all your help. The bank actually phoned me to offer to extend my overdraft by the amount I needed, anyhow, so problem solved!

Thanks!