Applying for a loan between jobs?

jojeba

I'm looking for work right now but need to take out a £2k loan to help me cover rent, bills etc until I find a new job. The loan I would apply for requires no repayments for three months, so that by the time I need to make my first repayment I will be back in work.
I have a good credit rating, and no other loans at the moment (paid one off a few months ago), but when I look to apply for the loan, it asks if you earn more than £16k per year, and wants my monthly income.

Should I apply based on my prior and assumed future income? When I am working again my salary will be a lot more than that, and I know it won't take me three months to find work.

Any advice much appreciated!

x

Beast

No you can only base it on your current actual income - anything else would be fraud.

fozmcfc

I see what you are trying to do, but if you don't get work or a well enough paid job, then you are going to end up in all sorts of bother, including possible fraud charges as they will want employment details etc...

You are very unlikely to find a decent loan if any at all while unemployed let one where you don't need to make a repayment for 3 months.

Try the different forums in work and benefits board for practical advice about your situation and any help your be entitled to.

Heres hoping you're back in work soon.

jojeba

fozmcfc wrote: »

I see what you are trying to do, but if you don't get work or a well enough paid job, then you are going to end up in all sorts of bother, including possible fraud charges as they will want employment details etc...

Thanks so much for your helpful reply... much appreciated! One question though - what if I had someone to be a guarantor on the loan? Do you know if that would make it possible?

Thanks again!

B.E.N

jojeba wrote: »

Thanks so much for your helpful reply... much appreciated! One question though - what if I had someone to be a guarantor on the loan? Do you know if that would make it possible?

Thanks again!

If someone's willing to stand as your guarantee, then wouldn't it be easier for them to take out the loan and for you to then pay them back..?

immoral_angeluk

If you are currently unemployed your earned income is £0 To get a loan based on a job which you hope to get, with the greatest of respect, is madness.
There is no guarantee of work for ANYONE out there at the minute. Getting into debt with no guaranteed future income is just a receipe for disaster.

~Brock~

I'm not suggesting the OP is one of them, but there are people who if granted a loan in these circumstances would be back on here in six months time squealing about how the lender had been irresponsible in lending to them at the time and that they should therefore not have to pay anything back.....

jojeba

Brock, I agree, and rest assured I would not be one of them.

fozmcfc

I am against friends/family getting loans for others as when it comes to repayments, quite often the person can't manage them and it can cause a complete loss of friends/family. I have got a loan for a friend in the past and it nearly destroyed our friendship when he just didn't bother paying me back until I told him I considered our friendship would be over if he didn't.

These things start with the best intention, but so often go wrong.

Still if you are still going to go down this road, then they would probably be best to get the loan and you pay them back. In your circumstances even with a guarantor you will still probably get a high interest rate. If your friend has a good credit rating, then that would mean less interest.

I would seriously think it over before committing to anything.

bouncydog1

Suggest you go over to the debt free board and get some practical advice on how to manage on what income you are getting at the moment.

Do not even try and get a loan - as others have said you have no guarantee of a job - far better to try and manage even though this is going to mean serious cutbacks and the application of skills and ideas you never thought you had.

You will also have greater incentive to take any work offered as it will mean a bit more money coming in.

Mr.Mulla

You will be charged with fraud if you declare your income as your previous one when in fact you don't have a job right now. You will just get yourself deeper into trouble if you do this. Perhaps it would be best to find another alternative instead of securing this loan under false pretenses.