Advice on applying for a loan.

bobbobbob

Hi,

I would like some advice on how likely I am to successfully apply for a personal loan.

I have incurred two CCJ's six years ago. One has already been removed from my credit record and the other is due to go in July. I have several debit account (with no credit facilities) all in good standing and two credit cards - a Capital One (since 03/2008) and a Vanquis (since 11/2008) also in good standing (balances will be £0 when I apply).

I have been self-employed for the last 6 years. My profit for the last financial year was 11K and the current year is expected to be roughly the same.

I want to borrow 5K. What kind of position do you think I am in once the CCJ has been removed?

Thanks for reading.

BugsyBrowne

So your salary for the year is 11k

bobbobbob

Effectively, yes.

bobbobbob

Can any one help?

CLAPTON

with a very very very low income of 11k, a loan of 5k would be very irresponsible lending and pretty unlikely to be offered

paddyrg

Your options are limited, you could try zopa/ratesetter once your CCJ's are vanished, or try your local credit union. Also ask your own bank, but be aware if they say no, it's usually a good sign that you're in for a tough journey. What is the loan for? Being able to justify to the bank "oh, it is to buy this tool which will mean I make £21k/pa profit instead of £11k" will be a huge plus.

bobbobbob

Thanks for the replies. Is there a rule of thumb in regard to how much one could borrow compared to one's salary?

redqueen_2

okey cokey - its good news that your credit file is repairing.

you should try your own bank first - they know your financial history and your income is paid in to them. If they say no then end your loan search.

don't use loan brokers.

If anyone outside your bank were to consider your application you would be declined on the basis that:

Your net income is less than £1250 a month
You are self employed

Finally, you didnt mention whether you were a homeowner, tennant or living with parents? Currently, Prime Lenders such as high street banks (ie decent rates) are not lending £5000 or above to non-homeowners unless their net income is decent and they employed full time.

A quiet chat with your bank is better than doing several loan applications as the declines will register on your credit file