A bit confused about getting declined

buritto

hi, i am a just graduated student whos 27 years old. I work just over part time hours in a bar and im looking to take out a loan of £3k to pay off my 2 overdrafts and pay for a holiday flight (overdraft 1:£1000, overdraft 2: £2,500, flight around £700) I will be getting charged £60 a month for being in my BOS overdrafts each month so i figured paying around £60 on the loan and being in the positives would be a good option.

Every loan i have applied for so far has been rejected, is this because of my overdrafts or because im not full time employed? any help would be appreciated. thanks

scottishblondie

How much do you earn a year? Lenders will look at it like this: 3k + 1k + 2.5k = 6.5k of possible debt, so you would need to be earning at least £13k a year, which seems unlikely from part time bar work.

Also, seeing as your ODs plus the flight gives a total of 4.2k, did you actually mean a 4k loan?

Sorry to be harsh but you are not going to get a loan - just work on paying the ODs off ASAP. And reconsider going on holiday right now since you have no money.

Caz3121

how long have you been in your job and what is your annual income?

You currently want to pay off £4,200 but are looking to borrow £3k is that correct - are you keeping some of the overdraft?

you currently have £3.5k in debt and are looking for an additional £3k which will take it to £6.5k...which in theory should be ok if your income is more than £13k (note: although you intend to pay off some of the overdraft they will not look at this really as you could just take the money and spend it elsewhere)

Are you on the electoral role where you live, have you applied to your own bank?

KingElvis

Being deep in an overdraft is a bad sign to lenders, being in two is like being on a financial ski slope...even as a graduate.

Sorry, but nobody will touch your tempting offer.

Good luck.

DCFC79

Is £700 for the flight the cheapest you can get,

buritto

hi, thanks for the help guys, my income wont be over 13k, i have been told i will get full time after summer, but for now it must be around 8k.

I did actually mean 3k in loan, i actually misstyped, my second overdraft is only 1,500. sorry!! the 3k would cover my overdrafts and leave me with a little extra money to add to the money i already saved for my holiday.
Thanks for being honest guys. I spoke to my own bank (BOS) and they seemed like they could be helpful with a loan over the phone, but the amount paying back was £5,500. Im not sure if i want to pay back that much on a loan for my overdrafts.

buritto

DCFC79 wrote: »

Is £700 for the flight the cheapest you can get,

yeah £700 is cheapest. i would be getting paid while out there, but not enough to kill my overdrafts

DCFC79

Are the 2 OD normal overdrafts or graduate accounts ?

buritto

one is a regular current account over draft, the larger one is a student overdraft, which im guessing will go regular soon

annafloss

Hey buritto,

Re: the student overdraft, I know for a fact that BOS give you up to three years to pay it off before you begin to incur charges. I think you do have to change to a graduate account, though. I'm currently doing the same thing myself.

They also offer a graduate loan, although I'm not sure what the APR will be like. You have to have a graduate account with them to apply - may be worth a try?

buritto

hey, thanks annafloss. What exactly is a graduate account? id be happy to apply for a graduate loan is its available!