Would i be able to get a loan being self employed?

brierley1989

Hello i hope someone has some information

I am 20 years old and i have been self employed for nearly a year now and before that i was employed for a year.

I have never had a credit card and always pay my direct debits for phone bills and car insurance when they are due.

I've checked on credit expert it says my experian credit score is 995 and excellent also on my report they only thing i can see thats bad is i had a late payment on a phone bill 2 and half years ago, and it shows on there me getting a bigger overdraft when things were hard and shows my bank checking each time so my report has been searched 23 times by different company's.

I work 5 days a week on building sites and earn on average £1000 a month but can be more sometimes, id like to borrow £9,000 over 3 years, i bank with nationwide and they say on there terms if your self employed you need to be a home owner which im not i am living with parents.

I quite like the look of a sainsburys loan but would i be accepted any information would be good thankyou

jonesMUFCforever

What is the money needed for?
Have you got any savings?

As you have only been self employed for 2 years (banks may want to see audited accounts for last 3 years) you will probably find it very difficult for a mainstream lender to touch you.

Why not ask your bank first to see what they would say - they should be able to give you an indication of whether they will lend or not without wasting a credit search.

brierley1989

The loan would be for a car, i havnt got any savings at the moment but was thinking it would be a good idea to put couple of thousand away before i asked for a loan, i have got all my account information showing i do work every week and how much i get for a year, maybe it would be a idea to talk to my bank first as they can see how much i get paid a week and that i have money going in and i do pay all my bills.

CLAPTON

your income is about 12,000 per annum and you want a loan of 9,000

even if you were in permanent emplyment it's very unlikely that anyone will lend such a high amount in relation to your income.

9,000 for a car is a huge amount given your income
lots of decent cars for 1 or 2,000

as you live at home it should be possible to do some serious saving...
save first, spend second

suppose you want to move out of home and into a flat: what would you do for a deposit or how would you make the repayments if you had other expenses

better to look at reducing your spending and start saving.

kissingthepink

Mate don't buy such an expensive car. I did just this when I started working and when looking back on things I would have defintely been better off with a cheaper motor and saving a few quid rather than paying the car off over 3.5 years as I did. If you are with your parents still you may well want to move out soon. Rather save that money for a deposit on a flat, furniture, telly etc. Don't spend more than say £2k on a car, and if you can save up and pay cash for it then even better. That's just some advice from somone who has been there, done that and thinks I could have done things smarter back then.

brierley1989

I see your points, i do already have a car had it nearly 3 years since i started driving and have just got bored of it rubbish little thing lol its worth 2,000 it says on parkers guide so maybe if i can save 5,000 or something then get a little loan over only a year would suit me better.