Advice needed on obtaining a loan - unemployed, w/income, excellent credit rating.

toffees

Hi

I hope someone here will be able to offer me some advice. I'm sure that there will be one or two people reading this post who will form certain unfavourable opinions of me and my circumstances. I ask you to reserve judgement and remember that you are not aware of all the details. So let's stay friendly, okay?!

I am currently unemployed and have been for some time, but I do receive certain benefits from the DWP. Let's get this out of the way nice and early - no, I am NOT a lazy, dole-claiming scumbag who simply can't be bothered to work, and spends all their time and money in the local Wetherspoons! There are very good reasons for my continued unemployment and I am doing everything I can to improve my employment prospects.

I would like to take out a loan to fund a course of study and associated costs. The benefits of this course are twofold: most obvious is that I will gain knowledge which will improve my employment prospects when I am ready to return to work; less obvious is that the routine and demands of study will help ease my body back into a routine and stop my mind turning to slush while I am out of work!

The amount I'm looking for is £2,400. The repayment period will vary a little depending on the interest rate, but I am looking at about 36 months. I have thought very carefully about what I can afford to repay and have ensured that my calculations are not based on the absolute maximum I can afford, but an amount that I can easily afford.

I do not qualify for a Career Development Loan.

I have managed my finances extremely carefully over the last couple of years, following a personal crisis which left me in a financial pickle! I regularly check my credit score with Experian and am now the proud owner of an EXCELLENT credit score. :T I'm at the top of the class... The only outstanding credit account I hold is a credit-builder card with APS for £4.95 a month, which I found out about here at MSE. I only have a couple of months left to go on this, after which it will be settled. Another good mark for me on my credit report!

I am concerned that my unemployed status will immediately render me ineligible for most loans. My understanding (please do correct me if I am wrong) is that a lot of loan companies and banks will not lend to someone who relies on state benefits for their income.

I have good reasons for wanting this loan and will have no problems making the repayments.

Does anyone have any advice regarding my options please?

Thank you in advance.

Lottie

ILW

Very unlikely, what about a part time job to earn the £2,400?

toffees

ILW wrote: »

Very unlikely, what about a part time job to earn the £2,400?

Unfortunately not. There are strict restrictions placed on part-time earnings for benefit recipients. As such, it would take me three years to earn the money needed!

Apples2

I think I'm one of the one or two you mention.

toffees

Apples2 wrote: »

I think I'm one of the one or two you mention.

Would you like to clear the air?! Asking a question or two usually puts paid to misconceptions...

Apples2

toffees wrote: »

Would you like to clear the air?! Asking a question or two usually puts paid to misconceptions...

Well, I was going to say nothing as per your request but hey hooo.

Your reply in #3 suggests you could work if you wanted to but choose to reap benefit money instead of an earned wage.

toffees

Apples2 wrote: »

Well, I was going to say nothing as per your request but hey hooo.

Your reply in #3 suggests you could work if you wanted to but choose to reap benefit money instead of an earned wage.

But you did say something, in your first post, when you commented that you were one of the people I mentioned...

I think it's quite obvious from my original post that I am unable to work, and for good reason. I have been quite open about my circumstances but do not feel I need to share every single detail of my life to justify my request for advice. My reply in #3 dealt with the issue of part-time work whilst receiving benefits. Part-time is allowed, but is limited to make sure that people receiving benefits don't end up with piles of extra money coming in from a p/t job. If I earned the money from a part-time job it would take me 3 years to raise what I need. Since I would like to start my part-time study (which is also allowed whilst receiving benefits) in September, spending 3 years earning the money would somewhat undermine my cause.

I do want to work and am setting plans to make best possible use of my time whilst I am unable to work. I am not choosing to sit on my backside watching soap operas all day, spending all the money I do have in the pub. For what it's worth, I don't drink, I smoke (tobacco or anything else), I don't get my hair cut in salons, I don't run a car... Nothing about my lifestyle is excessive or irresponsible.

telboyo

If you are receiving DLA as your benefit there is absolutely no problem with working part or full time.
Correct me if I am wrong but my understanding of ESA is that it is employment support allowance, surely this would SUPPORT your training needs.

toffees

telboyo wrote: »

If you are receiving DLA as your benefit there is absolutely no problem with working part or full time.
Correct me if I am wrong but my understanding of ESA is that it is employment support allowance, surely this would SUPPORT your training needs.

Hmmm... I hadn't heard of ESA. I'll run a search and read some information and will post back here in a few minutes. Thank you

ETA: I do receive DLA but have been putting the "permitted working hours" into studying instead, as part of my long-term plan to return to work. Under the DLA rules yes, I am allowed to work part-time but felt that my time was better spent improving my skills and qualifications. Unless these are improved, I'll be a pretty unattractive employment prospect when I return full-time! Off to do some reading now, back soon.

toffees

telboyo wrote: »

If you are receiving DLA as your benefit there is absolutely no problem with working part or full time.
Correct me if I am wrong but my understanding of ESA is that it is employment support allowance, surely this would SUPPORT your training needs.

Okay, found some information on Direct.gov.uk. This sounds familiar and I think it was mentioned by someone at the DWP a few months ago although I don't recognise the term ESA. If it's what I think it is, I was told that my current medical status means that I am not expected (by the DWP, anyway) to return to work. So ESA wouldn't alter my circumstances at all and won't absorb or deflect the costs of the training I want to pursue.

Off topic a little - Truth be told, NOBODY seems to think I should be working and that's horrible. I certainly don't intend to be living on benefits for the rest of my life. It's demoralising and frustrating. From an insider's point of view, I can see how and why so many people take advantage of the benefits system. For me, it's been invaluable as I recover from a serious illness. For others, I've all too often see it turn into a crutch and something which impedes rather than encourages a return to work.

But that's a subject for another thread! We'd all change the world if we could...

BugsyBrowne

toffees wrote: »

Hi

I hope someone here will be able to offer me some advice. I'm sure that there will be one or two people reading this post who will form certain unfavourable opinions of me and my circumstances. I ask you to reserve judgement and remember that you are not aware of all the details. So let's stay friendly, okay?!

I am currently unemployed and have been for some time, but I do receive certain benefits from the DWP. Let's get this out of the way nice and early - no, I am NOT a lazy, dole-claiming scumbag who simply can't be bothered to work, and spends all their time and money in the local Wetherspoons! There are very good reasons for my continued unemployment and I am doing everything I can to improve my employment prospects.

I would like to take out a loan to fund a course of study and associated costs. The benefits of this course are twofold: most obvious is that I will gain knowledge which will improve my employment prospects when I am ready to return to work; less obvious is that the routine and demands of study will help ease my body back into a routine and stop my mind turning to slush while I am out of work!

The amount I'm looking for is £2,400. The repayment period will vary a little depending on the interest rate, but I am looking at about 36 months. I have thought very carefully about what I can afford to repay and have ensured that my calculations are not based on the absolute maximum I can afford, but an amount that I can easily afford.

I do not qualify for a Career Development Loan.

I have managed my finances extremely carefully over the last couple of years, following a personal crisis which left me in a financial pickle! I regularly check my credit score with Experian and am now the proud owner of an EXCELLENT credit score. :T I'm at the top of the class... The only outstanding credit account I hold is a credit-builder card with APS for £4.95 a month, which I found out about here at MSE. I only have a couple of months left to go on this, after which it will be settled. Another good mark for me on my credit report!

I am concerned that my unemployed status will immediately render me ineligible for most loans. My understanding (please do correct me if I am wrong) is that a lot of loan companies and banks will not lend to someone who relies on state benefits for their income.

I have good reasons for wanting this loan and will have no problems making the repayments.

Does anyone have any advice regarding my options please?

Thank you in advance.

Lottie

Do you know something we don't, how do you know you have an excellent credit score??