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I had pretty good credit rating, in October 2016 I was offered discount which i took but to my surprise, it was a credit card check that after checking decreased my credit rating. In December 2016, I had financial crisis, which is still going on and I am borrowing money from different people (e.g siblings) so I had to apply for an American Express card, which was also rejected. Then I had searched for a Marbles Credit Card, which affected my rating again but they offered me a card on 44.9% APR.

Now, I am confused if I should go with them or not. As people keep telling me it will be too much APR/interest to pay. So in 2 months my credit rating went from very good to poor and my bank won't give me loan as well. Am I taking off a loan from website as amingos loans to help me build up my credit rating or what should I do as my bank won't give me overdraft as well.

Edit: I use Experian for credit score checking.

  • Are you looking for a credit card/loan because you need more money, or because you want to increase your credit score? – Ben Miller Jan 11 '17 at 14:28
  • @BenMiller both. – Nofel Jan 11 '17 at 14:29
  • I'm assuming that you are in the UK, because both of the links you posted are from the UK. Is that correct? – Ben Miller Jan 11 '17 at 14:29
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    Is your desire to be wealthy or to appear wealthy by borrowing? – Pete B. Jan 11 '17 at 14:41
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    Lenders will look at your history, how you make payments, how much do you owe, are you making lots of applications (AKA do you look desperate for credit?) Each lender will use this to decide whether they want you as a customer. A Credit Rating is just a crude way for Experian to give you a feel of whether your history is broadly good or bad. But different lenders will view things differently from each other. – Mark Perryman Jan 12 '17 at 10:17
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No you should not borrow money at 44.9%. I would recommend not borrowing money except for a home with a healthy deposit (called down payment outside UK).

in December 2016, i had financial crisis

So that was like 12 days ago. You make it sound like the crisis was a total random event, that you did nothing to cause it.

Financial crises are rarely without fault. Common causes are failure to understand risk, borrowing too much, insuring too little, improper maintenance, improper reserves, improper planning, etc... Taking a good step or two back and really understanding the cause of your financial crisis and how it could be avoided in the future is very useful. Talk to someone who is actually wealthy about how you could have behaved differently to avoid the "crisis".

There are some small set of crises that are no fault of your own. However in those cases the recipe to recovery is patience. Attempting to recover in 12 days is a recipe for further disaster.

Your willingness to consider borrowing at 44% suggests this crisis was self-inflicted. It also indicates you need a whole lot more education in personal finance. This is reinforced by your insatiable desire for a high credit score. Credit score is no indication of wealth, and is meaningless until you desire to borrow money. From what I read, you should not be borrowing money.

When the time comes for you to buy a home with a mortgage, its fairly easy to have a high enough credit score to borrow at a good rate. You get there by paying your bills on time and having a sufficient deposit.

Don't chase a high credit score at the expense of building real wealth.

  • Thanks pete, yes i am poorly managed. I have edited question, to tell it is still going on. I moved to this country and got contracts which costed me fortune, and just now i came to know i could have rolling contracts e.g phone, pvt. insurance. car and insurance. I would borrow money to pay out my contracts and my debit that makes like 200 quid pm and i am returning people loan as well. Simply put, 5 days after payday i am empty. Right now i can fix myself but with help me more loan to pay people i need to pay and reading something about personal finances. – Nofel Jan 11 '17 at 14:52
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    Sorry I was not clear: STOP BORROWING! – Pete B. Jan 11 '17 at 14:53
  • How can i save to return borrowing, any smart way? – Nofel Jan 11 '17 at 14:53
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    Read moneysavingexpert.com/loans/debt-help-plan. Then read it again. – Mark Perryman Jan 11 '17 at 14:57
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    @Nofel One way to stay broke is to continue borrowing money. You need to live within your means and save as much as you can. You're in a debt emergency now, opening another line of credit will only make it worse. 44.9% is ridiculous. Usury. Any sane debt reduction plan will work. Forget about being wealthy. Get out of debt first. THEN research frugality, financial independence, wealth building. – Xalorous Jan 11 '17 at 17:41
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I had to apply for an American Express card, which was also rejected. Then I had searched for a Marbles Credit Card

Stop applying for credit cards/loans. Doing so is just making your credit rating worse. Credit agencies will downgrade your credit rating if they see lots of signs of credit checking. It's a sign you're desperately looking for credit, which you are...!

44.9% APR

This is very expensive credit. You can get personal loans on the high street for 3-4%. 44.9% is really bad value. You're simply going to make the situation worse.

Am I taking off a loan from website as amingos loans to help me build up my credit rating

Again this is 44% interest! You also need a guarantor. So you're not only going to get yourself in trouble but a family member too: don't do this! This will only help your credit rating if you pay it back successfully, which given your situation seems like a risk.

So what should you do?

Contact the Money Advice Service or the National Debt Line. Explain your situation in detail to them. They are a government-backed service designed for people in your situation. They will offer practical advice and can even help negotiate with your creditors, etc.

Here's some general advice about getting out of debt from Money Saving Expert

Never borrow more

Traditional debt help says 'never borrow your way out of a debt problem'. But this ignores the varying cost of different debts.

The MoneySaving approach is: "Never borrow more to get out of a debt problem."

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  • What is APR and interest differences? How much is bad FYI? – Nofel Jan 11 '17 at 17:06
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    Don't lend more! At all, at any interest rate. Contact the dept advisory service. Get their help. You need to lower your dept not increase it – Liam Jan 11 '17 at 17:07
  • I've updated the people to contact @Nofel I thin the one I linked before may be a company. The ones now listed are goevement services and 100% impartial – Liam Jan 12 '17 at 13:04
  • Liam your picture really depict and have impacted me, i managed to pay 90% of people and have to cut down with a tight budget for this month. Hopefully i will be out of debit. Any good articles to read on saving and spending? – Nofel Jan 24 '17 at 13:27

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