Advice On Personal Loan

kjt_3

Hi everyone,

Long-time reader, first-time poster!

In the next few weeks, I'd like to take out a personal loan of about £6,000. I'm hoping you can give me a bit of advice about where I should apply, and what I should expect. My situation:

I've been self-employed for a year. In that year I earned about £18,000. I still live at home. I've had my current account with Barclays for about 12 years. I've had a business account with Barclays for about a year.

I've had a Barclaycard for 7 months and never missed a payment. I have no other credit or loans anywhere else.

So what should I do? I'm scared to just apply anywhere because this can damage your credit, can't it? Would I be best off applying to Barclays? Would I be more likely to be accepted because it's my own bank?

If they turn me down, where should I go next? Where am I most likely to be accecpted?

Thanks a lot for your time. I'm new to all this and really appreciate your help.

KJT.

Rafter

KJT,

Being fairly new self employed a lot of unsecured loan companies are going to be a bit scared of you.

£6000 is quite a large loan with only an 18,000 income, although your outgoings are presumably fairly low living at home.

Would one of your parents be prepared to act as a guarantor or take out a joint loan with you?

Barclays is probably your best starting point.

Good luck

R.

kjt_3

Hi Rafter, thanks for the reply!

You're right about the outgoings. I would never have any problem paying off a loan this size (assuming I could get one).

Unfortunately I'm not in a position to have anyone act as guarantor for me...

What are my chances of actually getting a loan of this size from somewhere? I realise I'd pay more interest with some of the companies that loan to people with less than ideal credit...I can accept that.

Do I have any chances at all?

CLAPTON

what is your credit record like?

if you have a good relationship with barclays then they are your best bet.

kjt_3

Hi Clapton,

I've never missed a payment on anything, but at the same time, I don't have much of a credit history. I've never had a loan before and I only have one credit card.

The Barclaycard was one that their site said was for someone with "good" credit, which I applied for by mistake (I meant to get their "starter" card). Maybe a sign that Barclays might give me a loan?

CLAPTON

presumably you do have a history with barclays as you pay your income in there

they are you best bet

kjt_3

Yep, pretty much everything I've ever earned or spent for 12 years has been through Barclays! Let's hope that buys me some favour with them...

thriftymomma

Yep, I'd say go for it with Barclays. Good luck.