Applying for another loan/current account help? 20

marrow26

Not quite sure if this is worth doing, but i thought i'd get an opinion, i know a few !!!!!! will be around, but serious replies are appreicated.

Basically i've got a full timish job, looking for a career/apprentice job. Earning around £520 a month at the moment.

When i was 19 (March 2010) i opened a current account with Yorkshire, and took out a loan for £1400 over 3 years with them.

I also have a student account with Barclays, but i dont really use that anymore.

I need another loan to tide me over, quite skint, need money for holiday/car repairs, so i'm looking to take another £1200 loan out over 2 years, again working out at around £15 a week payback.

So i'd be payin £30 a week back overall which i could afford quite happily.

My question is how many current accounts are you allowed? as the ones i've looked at want you to switch your banks over?

Will they know about my previous loan and will that impact my new loan request? Can i lie about not having another bank account?

On one of the applications i've just put in my other acount is at Barclays, so they won't know about my loan, but then if they ask where do my wages go as proof, then what do i answer?

So basically someone with a little more life experience, can i get another current account? Do i need to tell them about my Yorkshire bank account and loan? Have i much chance in being succesful?

When i went for the Yorkshire bank loan, i went in that day, set up a current account, proof of earnin £540 a month, and they just funded my account that day.

I have since heard that they can check my Yorkshire bank account anyway? In how much depth?

I have been very good for the last year with my loan repayments however the other day "Yorkshire" let me go overdrawn (something that shouldn't have been allowed) and i'm now £195 overdrawn with them, i can't afford this and part of the loan is to pay this off, instead of using quick loan services. Will this £195 overdrawn affect my loan application elsewhere, despite being very good with payments?

Cheers for any help

Simon11

Please note that I'm 22(Today:D) and hope you don't feel like older people here are saying things you won't want to hear.

You are living beyond your means. If your in your overdraft, then where will you get the money to pay for another loan? Your life could quickly spin into a life of debt, with no way to get out.

The most important word for you mate is "Save"

There will be times in the future when you will really want to take money out for example mortgage and if you go down your current road you'll make life so much harder.

Also note the difference between 'want' and 'need':)

I'd suggest working out where your income goes: £520 ie rent, loan, transport, food ect

marrow26

I appreicate the words of advice of not going down that route, but i feel i can afford it, and need a lump sum right now, so reading back over my first post, would i be likely to be accepted, and can i go into a new bank (RBS, Natwest, HSBC) and open a current account then apply for a loan on the same day? Thanks for the help

CLAPTON

there is no specific reason why you can't have more than one current a/c

some a/cs ask for a minimum income and/or a minimum monthly deposit

do not lie about anything as they will check your credit records and see you already have an account and already have a loan and they may ask for payslip to prove income (but unlikely)

KingElvis

Also you have to remember that as a brand new customer you'll have a very low chance of getting a loan.

Tixy

marrow26 wrote: »

So basically someone with a little more life experience, can i get another current account?

You can have as many current accounts with the same or different banks as you like.

marrow26 wrote: »

Do i need to tell them about my Yorkshire bank account and loan?

Yes - and if you don't they will see the info anyway on your credit file.

marrow26 wrote: »

Have i much chance in being succesful?

In getting a new current account probably, but your chances of getting another loan from a high street bank on your current wage and with your current debts are very slim.

marrow26

Thanks tixy, although i was a little less wage when i applied for the original loan at Yorkshire and was accepted, if i explain i am comfortable paying back £15 a week etc will this be taken into consideration.

Also if i get approved of a current account, if i take the ID/forms into the bank to set up the current account, could i apply for a loan on the same day, and explain the reason for setting up a current account is to take out a loan, or would that seem very desperate?

KingElvis

marrow26 wrote: »

Thanks tixy, although i was a little less wage when i applied for the original loan at Yorkshire and was accepted, if i explain i am comfortable paying back £15 a week etc will this be taken into consideration.

Also if i get approved of a current account, if i take the ID/forms into the bank to set up the current account, could i apply for a loan on the same day, and explain the reason for setting up a current account is to take out a loan, or would that seem very desperate?

Sorry to say but that seems a smidge desperate to me. Chances of this actually happening are 0.0 I would think.

Tixy

Doubt what you say will make any difference, they will assess your finances themselves. Problem is your income is very low, and you are not living within your means.

How long have you been overdrawn on your current account? If this has been documented at the credit reference agencies (which happens around once a month) then your chances of a new loan are likely to be near zero.

You could probably apply for a loan the same day, and yes if you say that is why you set up the current account you would seem desperate. But regardless of what you say its not a person who listens to your arguments and makes a decision as to whether they will lend to you. They simply input your figures into their computer, do a full credit check and the computer then either approves your loan or doesn't.

I really would say its pretty unlikely you will get a loan. I would start making alternative arrangements in case you don't - such as speaking to your current account and arranging to repay the unauthorised overdraft with them as soon as you are next paid.
Have you got anything you could sell to help you pay for your car repairs? I wouldn't start planning a holiday yet as its likely you won't get the funds to pay for it.

Errata

Do you have any idea what your credit rating is? Have you checked?