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Money Lenders

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  • 27-05-2010 3:37pm
    #1
    Eddmacc
    Closed Accounts Posts: 9 ✭


    Does anyone know in what way moneylenders work and what rate of interest they normally charge.
    My bank has knocked me back for a 500 euro loan and they wont extent my overdraft.
    I am working part time.
    Thanks


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    #2
    smcgiff
    Closed Accounts Posts: 5,943 ✭✭✭smcgiff


    Eddmacc wrote: »
    Does anyone know in what way moneylenders work and what rate of interest they normally charge.
    My bank has knocked me back for a 500 euro loan and they wont extent my overdraft.
    I am working part time.
    Thanks

    They HAVE to charge a high rate, at least 23% or something, but more likely a lot higher.

    Traditional understanding is that they don't take kindly to non payment.

    Try credit union first - Money lenders should be last resort.


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    #3
    Eddmacc
    Closed Accounts Posts: 9 ✭Eddmacc


    I dont have a credit union account and i believe they only lend you a certain percentage of what you have in your account.
    Its a family wedding in England and its a weekend thing.
    500 euro at 25% would work out at around 625 or so. I know its a bit much to pay back but i dont want to ask my folks as dad is not working at present.
    What criteria do they use to to accept you or turn you down?


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    #4
    messrs
    Registered Users Posts: 1,853 ✭✭✭messrs


    really really wudnt reccomend a money lender - is there noone else you can borrow the money of and pay them back - friend, brother/sister

    could you even apply for credit card and put your flights, accom ect on it and pay it of when you can

    you really dont want to get involved with a moneylender


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    #5
    smcgiff
    Closed Accounts Posts: 5,943 ✭✭✭smcgiff


    Eddmacc wrote: »
    What criteria do they use to to accept you or turn you down?

    Someone unlikely to pay back on time. They love those as they apply penalty interest. It's not unheard of for people who borrow off money lenders to pay back multiples of original amount.

    I'd say if you go into your local Credit Union and explain your case you might be pleasantly surprised.


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    #6
    petes
    Registered Users Posts: 8,382 ✭✭✭petes


    smcgiff wrote: »
    I'd say if you go into your local Credit Union and explain your case you might be pleasantly surprised.


    The only problem I see with that is that they don't have an account at the minute with no history etc.

    If they set up an account and threw a few hundred in there would the CU give out a loan of €500 on this basis?


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    #7
    messrs
    Registered Users Posts: 1,853 ✭✭✭messrs


    credit union will loan you 4 times the value of your savings - not sure if this only applies to regualr savers or how they work it

    OP - still think you should think of the credit card route before you go to money lender


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    #8
    Eddmacc
    Closed Accounts Posts: 9 ✭Eddmacc


    smcgiff wrote: »
    They HAVE to charge a high rate, at least 23% or something, but more likely a lot higher.

    Traditional understanding is that they don't take kindly to non payment.

    Try credit union first - Money lenders should be last resort.


    In what way do they not take kindly to it. Do they work along the same lines as a loan shark then?


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    #9
    smcgiff
    Closed Accounts Posts: 5,943 ✭✭✭smcgiff


    Eddmacc wrote: »
    In what way do they not take kindly to it. Do they work along the same lines as a loan shark then?

    To be fair they shouldn't be as bad as a loan shark which are illegal lenders and have a way worse reputation.

    You could go to your local credit union and ask if you put €200 into the credit union could they give you a loan of €500. If no other source available you could get the €200 from a money lender, but at least you've reduced your debt to the money lender.


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    #10
    Anyone
    Registered Users Posts: 3,376 ✭✭✭Anyone


    They normally charge an APR of around 170-180%. The example you gave was pay back 625 for a loan of 500, but thats over a far shorter time period than a year.

    Oh, and the penalties, they will charge interest on interest if you miss payments. As others have said, try your local credit union first.


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    #11
    MagicMarker
    Banned (with Prison Access) Posts: 32,865 ✭✭✭✭MagicMarker


    If you can't afford to go to the wedding then you don't go to the wedding.

    This is basic stuff.


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    #12
    Eddmacc
    Closed Accounts Posts: 9 ✭Eddmacc


    MagicMarker wrote: »
    If you can't afford to go to the wedding then you don't go to the wedding.

    This is basic stuff.


    Interesting reply considering where your location is.


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    #13
    MagicMarker
    Banned (with Prison Access) Posts: 32,865 ✭✭✭✭MagicMarker


    Eddmacc wrote: »
    Interesting reply considering where your location is.
    If I did live in a very very very fine house then I wouldn't have got the loan from moneylenders.


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    #14
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,920 Admin ✭✭✭✭✭Toots


    Unfortunately Moneylenders are a 'forbidden topic' here, see the charter for more info. The rates they charge are extortionate, and penalties are even higher. As other posters have suggested, see if you can get any joy from your local credit union, or alternatively see if there is a family member who can help you out.

    Thread locked.


This discussion has been closed.
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