Credit union a good option for a student with bad credit? e_miij

I'm a PhD student and I live on a stipend of £14k a year, which I'm paid quarterly.

Many quarters, I run very low towards the end of the quarter, especially if unexpected payments come up as they tend to (e.g. I had to pay £1000 to some ex-housemates unexpectedly a couple of months ago which completely ruined my budgeting).

I've applied for some small loans but have been rejected every time. I've also gone over my overdraft limit. So my credit is awful, my income is low and isn't from a job... I don't think I'll be able to get a high street loan for the next few years!

This time round I ended up turning to a pawnbroker to get a pawn loan on some jewellery (the only thing I own with any value!). It saved me from a tight spot but is obviously a very expensive way to go about things.

There are two credit unions in my area that I'm eligible to join. Although I may not need another loan for maybe 6 months, I'm thinking of joining now and paying in a low monthly amount, so if I need a loan in a few months' time I will have a better chance getting one from them than I would have from the high st, and it'd give me a chance of borrowing money without resorting to the pawnbrokers again.

Is this a realistic idea, or will the credit union refuse me credit based on my awful credit history and my student status?

So is that the case even with a guaranteed stipend each quarter? Wouldn't they count that as income?

I work part time teaching undergrads at my university, but it's not a regular thing as it depends on course timings - I taught two weeks in January, one week this month, it'll be 0 weeks next month etc. So I can't say I have a guaranteed income.

Maybe a steady one day a week job is the way to go

If you are really struggling you may be eligible for financial support through the university.

But realistically a job is the way to go. I combined two part-time jobs and university. There are often roles in the institution that can be applied for.

Debt is not the answer.

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