Advice about applying for a loan

Mike_292

Hi everyone, (sorry for the length of the post & thanks in advance for reading)

I'm 23 and have been in employment for a year full time earning £15000 (after finishing uni). I also have another part time job at weekends which pays £5500, which I have had since I was 17.

I have two credit cards, a student one from my bank with a limit of £500, which I got in my 1st year of uni, and a second one from Asda with a limit of £3000, which I got in my 3rd year of uni whilst I was on a year's paid work placement. I don't use the cards much but when I do I never miss a payment.

I signed up to creditexpert.com to view my report and it was very good. I paid for my experian score and it came out at 999, which was rated as excellent (not sure how accurate that can be as it seems strangely high for someone not on a massive wage).

The thing is whilst at uni I ran up some debts, nothing major, just going out too much, buying too many clothes etc and under estimating my rent. In the end I borrowed £4000 from my parents to help out, which I agreed to pay back after I finished uni and started working.

I have been paying this back to my parents over the last year and am due to make my last payment this month. The thing is I would like to get a loan to buy a new car, pay off my graduate overdraft (which I have constantly been in) and buy some new furniture for my house (rented) I would like to borrow around £7000 but I'm worried that my bank will see that pretty much all the money that I've earned has gone out again over the past year and will think that I can't afford the repayments.

Is this something the bank will look at in deciding whether to accept me? How about if I apply from someone other than who I bank with? Will they still be able to see my outgoings? I'm worried to apply with my bank in case I get declined and it has a negative impact on my rating.

Very sorry for the long post and thanks for any advice.

[Deleted User]

If you think that might be a problem then try someone like tesco or alliance and leicester instead of your own bank,from what you say it shouldnt be a problem,but might be worth asking for £7500 to maybe get a slightly better APR

Mike_292

Thanks for the reply woodbine. I guess I just wondered if other banks/loan companies would have access to the same info that my own bank would, and if not, how they determine whether you can afford the repayments.

On a slightly different note, (sorry if it's been asked a million times before) I presume the company would contact my employer to make sure I work there. Will they tell them that I've applied for a loan? Or how much it's for? Or will they just want to confirm employment and not state a reason?

[Deleted User]

I`m not sure they would contact your employer but if they did so what?
your own bank will have access to the info you refer to other lenders wont,they will use credit ref agencies to decide if you get the loan or not