Graduate Loan - Help needed

Kingsy101

Hello everyone,

This is my first post on a forum like this but I need some advice. I recently graduated from university last year with a degree in computing science. I am at the moment self employed doing freelance programming work for a local company and at the same time I have a business account with barclays and I am in the middle of getting my business up and running.
I do however because of university have alot of debt spread out over 2 credit cards and a over draft. Each credit card has a balance of around £500 owed and my overdraft is maxed at -£2000 . Due to this I was thinking the best way forward was to apply and get a graduate loan to consolidate my debts into a simple loan.
I have already rang barclays and they said that my having a business account didnt have any effect on my chances of getting a graduate loan, so I guess my next step is to apply for one.
I was thinking of a figure close to £10,000 for the loan amount to clean all of my debts and get me some driving lessons and a car.
My credit rating isnt the best but its also not the worst. The last time I did a score check it was at about 872 which came under the category "fair", how much will this impact on my chances?

If someone could tell me the potential outcome of my applying that would be great, and perhaps any advice that might help in my situation?

I look forward to your replies.

Thanks

Chris

CLAPTON

how are you going to repay the 10,000 loan if your are current at the max of your OD (which seems to indicate that you are struggling at the moment)?

whats your income?

Kingsy101

My imcome is coming directly from freelance work at the moment.
However I am going to starting my own company, so this will be where the majority of the income will be from. I will use my own company to repay my loan.
I would say my income for a year (based on only what I earn from freelancing will be the same as last year which was around £10,000) not alot I know but as of when I get this loan I am going to be running my own company which has unlimited potential.

Is this answer sufficiant?

Thanks again

Chris

CLAPTON

A bank will probably see ..income 10,000 and loan 10,000
and will not lend on that basis

If you are making a business case for the loan..i.e. to help start the comapny then they would want you to put some money in too.

I doubt any bank will lend under these circumstances.

Can you not start the business and use the income to reduce the OD etc and save for a car?