Loan Question!

annafloss

I've been looking to take out a small loan of £2000, either via a 0% balance transfer CC or a cash loan. I have only recently got back in to employment after uni (I only graduated yesterday!), in a contract job that tides me over until my graduate job starts in September.

I have a steady job history previous to university, and the only debt i have is through the Student Loans Company (I'm a Scottish graduate). I have a credit card with a £500 limit, but when i do use it (rarely), it is paid off in full. Also never missed a payment on any other of my outgoings (i.e. phone bill, utilities etc.)

Should I wait a few more weeks before applying?

Also, this job isn't terribly well paid - about £13k per annum - but I'll be on an extra 10k when i switch to my permanent job in September - what salary should i disclose on my application?

Thanks in advance

Tixy

You must only put your accurate current salary on a credit application - to put anything other would be a fraudulent application. And equally you will almost certainly be required to state when you started your current job. If by contract job it is not a permanent ongoing position then you should disclose its a temporary job on an application.
And they won't take into account a job offer for a job starting in a few months time - or the salary you might get from that assuming that the job offer is not withdrawn.

I would imagine you might struggle to get a 0% credit card - do you actually need cash? or is it something you can buy on a credit card? if you need cash then a card would only work if it was one of the few credit cards that allows super balance transfers (aka money transfers).

How long do you want to borrow the £2k over?

Who do you bank with? is it still a student current account? and do you have an outstanding overdraft with them? Have you looked into their graduate loans/rates?

annafloss

I would only need it over a maximum of two years. I currently bank with the Bank of Scotland, and yes I have a student account with a £1650 overdraft which I was planning to pay off over the next couple of years as it's interest free for three years post-graduation.

I recently spoke to some in-branch about a graduate account, which enables me to apply for a graduate loan - do you think that's the most sensible route to go down?

annafloss

And yes, I need the cash rather than credit, as it's going to be used as a deposit and for my move to England for my new job.

Tixy

Have you enquired with your future employer if they offer any form of relocation loan? Quite a lot of employers do even if not widely advertised.

A graduate loan might well be your best chance. Presumably the overdraft is maxed to its limit?
Alternatively have you considered a house share / rent a room whilst you first relocate - it should be much cheaper in the short term and will allow you time to get to know the new area you are moving to and check that you like the job etc before commiting to a property rental of 6months or more.

annafloss

Tixy wrote: »

Have you enquired with your future employer if they offer any form of relocation loan? Quite a lot of employers do even if not widely advertised.

A graduate loan might well be your best chance. Presumably the overdraft is maxed to its limit?

I have yes! You can claim a relocation allowance, but you have to claim it back (just as you would with company expenses), so unfortunately I need the money there in the first place.

And no, the BOS overdraft limit is £2000 in 4th year, so I was fairly close but not quite. I haven't applied to increase it since 2nd year, if that makes any difference. My credit card is also with BOS also, and they are always trying to get me to increase my limit - after hassling me to take one in the first place!

Do you have much experience of graduate loans? I'm curious to know whether the interest rates are sky high!