Bank loan - 0hr contract

ollyver27

Hi,

I have just completed my Masters and have a job with an average of 42hrs a week. However, I am on a zero hour contract.

I am after a loan of around £1,500 to get a new car. However, I know nothing about the process, and thus have a few questions:

Would I need to provide proof of earnings? How does this work if I am on a zero hour contract?

Can I pay off the loan early if I wished?

Anything else I may need to know?

Thanks for your help

jonesMUFCforever

So you are not contracted at all but in a way self employed?
If this is the case you will find it very difficult to get a loan from any provider.

caeler

jonesMUFCforever wrote: »

So you are not contracted at all but in a way self employed?
If this is the case you will find it very difficult to get a loan from any provider.

You can have 'employed' status on a zero hours contract, it just means that the obligation to offer/accept work is different to permanent regular hour contracts.

OP - If you were able to get a loan based on your 42 hours a week, just make sure you can repay the loan incase your employer stops offering work which they can do without notice.

jonesMUFCforever

My point is that a lender will always look on the black side of things - zero contract - zero wages at a whim so high risk.

[Deleted User]

tbh the questions a lender wants answers to are:employed/self employed/unemployed and how much you earn
ive never seen them ask about contracts,and 0 hour contracts are becoming more popular with employers

for £1500 a cc maybe a better option as the interest rate will be the same maybe even less than a loan for 1500,if you are buying from a dealer they may even accept payment by cc(for a small fee)

ollyver27

Thanks for your help guys. I am employed, not self-employed.

RE: the credit card (I presume thats what you meant by cc) I think I will be buying with cash from a private dealer, although won't know until I see the right car

A few other options I have briefly scanned over:

An overdraft (do they come as big as this?!)

A graduate loan

Like I say though, very briefly looked at them, so don't know much about them. Would these options be any better? I have a student overdraft account with natwest, and I only have to keep it 'active'. This means in times of economic hardship (for example, employer taking work away from me due to 0hr contract) I can reduce payments just so the account is 'active'. Is this a good idea?

Also, another question...If I apply for a loan, and I am unsuccessful, does this go against my name?!

Thanks

Dabooka

My pal has been on a zero hours contract for years and has got finance for a brand new motor from a main dealer. With regards to the application going against your name, it'll show up as a search regardless so don't worry too much as long as you know you meet any criteria laid out from the start.

I'd certinaly look into a graduate overdraft deal form your bank, but the apr does often sky rocket after the period is over. However, they'll know who you are and have a history of your wages and expenditure so might be a viable option. Also, it;'ll be easier to pay off additional amounts when able.

immoral_angeluk

SEEYA23ISATHICKSTUNT wrote: »

blahblahblahbullcrap

uh... yes. Reported.

ollyver27

Thanks for all your advice. I will speak to the bank tomorrow about possible options and see what they say