Loans with good credit

Foolah

Hello all,

A friend of mine has good credit, this is pretty much due to not having loans and so on.

He wants to take a loan out of between £3-5k.

But he doesn't work and is 63, so is it possible for him to get a loan from somewhere? Also, if he aks bank for this amount, will it affect his credit rating if they decline?

Any advice would be helpful.

Thanks.

CLAPTON

people with good credit rating are those with a proven history of repaying debt according to the T&Cs

lenders are interested in the ability to repay via an income source

if he applies then the application will show on his credit reports but not the result as such

one application will have no adverse effect

Foolah

Thanks for your reply, very helpful.

Does anyone know of best lender to go to? I have found Zopa and Natwest (bank).

CLAPTON

what's his income?
why does he want a loan?
why is it 3-5k?
what has your bank got to do with it?

Foolah

I am not even sure what his income is. I think it's around £150/week. I think the loan is for some improvements, so hence why he ants around that mark. My bank is the same as his is, so hence why I typed my bank!

I looked at Zopa who seems the most sane, £4k over 5 year is £83/month.

CLAPTON

150 per week is 7,500 per annum
if that is the sole income then one would hope that no responsible lender would consider lending him over half his annual income.

on such a low income no-one should consider borrowing money; he should save first and then spend.

Foolah

What to do and where to go then?

I told him to lower how much he wants, not sure if he will?

CLAPTON

by 'improvement' do you mean house improvements?

does he own his own property?

if he can afford £83 a month in repayments then presumably he has been saving this up

how much are his savings?

is he expecting money in the future i.e. a pension or lump sum at 65?

Foolah

CLAPTON wrote: »

by 'improvement' do you mean house improvements?

does he own his own property?

if he can afford £83 a month in repayments then presumably he has been saving this up

how much are his savings?

is he expecting money in the future i.e. a pension or lump sum at 65?

He doesn't really own anything, but the £150 he does get comes from government and pension from work, etc.

I know he can afford £20/week to put away for the loan, but I don't think it's going to happen at the moment. He got refused by Natwest and Zopa.

Not sure what I can suggest to him now

dealer_wins

No chance of getting the loan, so just tell him that.

On his income/disposable income he will not get any sort of loan even £1000 im afraid.

barbarawright

Foolah wrote: »

What to do and where to go then?

I told him to lower how much he wants, not sure if he will?

He can't force anyone to lend him money. £3000 at £80 a month is 37 months without interest. Does that really sound practical? And you say he doesn't own anything - does that mean he doesn't own the property he wants to improve?