Advice choosing a loan...

protector

Hi people.
I've made a similar post in the credit card forum because as yet I'm unsure as to which method of borrowing I intend to use.

I need to borrow between 3 and 5 thousand in the next month (probably sooner rather than later though) and expect to be able to have it paid off soon. Really a short term loan.

I know borrowing can be done on a credit card effectively charge-free however I wouldn't really have a problem paying some interest as a personal loan would be convenient for the plans I have for the money.

There is one (potential) problem I could face though.

I would have more than enough to cover repayments, however I can't actually prove my income. My work is all legal (nothing dodgy) but as I'm just starting out I have nothing official to prove anything.

Are there any loans that would be good for me to apply for? Something where I can declare an income (25k if being conservative) but not have to prove it or have it looked into.

I was approved for intertest free credit a couple of years ago when on very sporadic income and a low one at that - but that was for a store card. My limit on that card has since risen to the region of £2k to £2.5k so I imagine I'm not seen as terribly risky.

Obviously a new loan means new checks and I'm not sure how that would turn out.

So - advice please?

Thanks in advance

Rafter

You are going to have to declare whether you are employed or self employed on any application for credit.

If you are employed banks can make some assumptions from your employers name and role what kind of risk you are.

Banks by law have to undertake reasonable checks to make sure what they are lending to you can be repaid. If you are self employed this means checking your accounts etc.

If you can't do this you are extremely unlikely to get significant borrowing.

My only suggestion is that you ask friends or family to help you - going it alone doesn't seem to be an option, however quickly you think you can repay the loan.

Good luck.

R.

protector

Thanks for that.
Unfortunately I don't think the friends and family approach is going to be an option. Looks like I might need to find a workaround somehow.

Do the checks ever go as far as to actually contacting your employer? Or do they just want to see an employer job title and income?

Rafter

Very unusual to contact employer. The checks will usually be for consistency between what you say on your application and what your credit record is saying.

Lying on an application form is fraud though - not to be recommended as you will basically write yourself off from ever getting credit or a mortgage again and maybe get a criminal record to boot.

R.

protector

Don't worry - I'm not about to commit fraud. "You do not steal" (Ex 20:15 - basically what fraud is right ) In fact if I was in the game of illegal activity - I wouldn't need this loan in the first place! Thanks for pointing that out though - would be a useful bit of info had it been on my agenda.

While I work for myself I am also in employment with a local 6th form college, PAYE and NatIns paid there - it's not my whole income though, hence the problem.

So what effect would your employer have on your credit record? I've not heard of a connection in the little I've read before.

missile

If you only want 3-5K I would have thought your income from the local college would be suffient. Why not simply make an application and see what happens. There are many offering online service, so you could find out very quickly if not instantly.

PS: Almost anyone can get a store card, with instant credit.

AMILLIONDOLLARS

My advice is just be careful and read the small print . Hubby was just offered a £20,000 Homeowner loan from Capital One. Listing three great reasons to apply!!.
Total amount payable £50,516.84 :eek: :eek:

That's £210.49 over 20 years, they must be having a laugh:mad:

Robert_Sterling

Over a period of 20 years that is not exactly extortionate IMHO.

Greentea

I recently applied to egg for a loan after being rejected from Nationwide and A&L - they refused because I wasnt earning enough.

In my application to egg I increased the loan period - so it was affordable - and because it is flexible I was then later able to up the replayments, so in effect Im paying out over a shorter time.

Also egg also included additional income to my job. The asked about all income and outgoings before giving an answer.

Good luck.