Tesco loan...a yes or a no?!

endaf

Hi all, long time lurker but 1st time poster!
Quick & hopefully easy question for you experts out there in regards to my girffriends circumstances, & whether she's likely to be accepted for a loan with Tesco (or any other company!)
she works full time, earns £12,500pa, has one credit card with a limit of £2000 & a balance of £33, one credit account with an over draft of approx £300, which is being used at the moment, has never missed any repayments & no defaults. Experian credit score of 920 (i know is just a made up number but just for your info!) still lives at home, so no real outgoings like rent, bills etc.
What are her chances of getting a loan of £15,000 taken out over 10 years with Tesco loans?
Would it be better to apply for a lesser amount, like £12000?
Is it looked more favourably by the lender to take out a loan over a longer period?
What would be her ceiling in regards to a loan if you think that amount is over committing herself etc?
hope ive made myself clear in the post & as always any & all help is greatly appreciated.

thanks

DCFC79

endaf wrote: »

Hi all, long time lurker but 1st time poster!
Quick & hopefully easy question for you experts out there in regards to my girffriends circumstances, & whether she's likely to be accepted for a loan with Tesco (or any other company!)
she works full time, earns £12,500pa, has one credit card with a limit of £2000 & a balance of £33, one credit account with an over draft of approx £300, which is being used at the moment, has never missed any repayments & no defaults. Experian credit score of 920 (i know is just a made up number but just for your info!) still lives at home, so no real outgoings like rent, bills etc.
What are her chances of getting a loan of £15,000 taken out over 10 years with Tesco loans?
Would it be better to apply for a lesser amount, like £12000?
Is it looked more favourably by the lender to take out a loan over a longer period?
What would be her ceiling in regards to a loan if you think that amount is over committing herself etc?
hope ive made myself clear in the post & as always any & all help is greatly appreciated.

thanks

Re her chances we cant tell but im sure i remember reading Tesco are more lenient as to who they lend too.

A £15k loan on a £12.5k salary is a no no as its more than 50% of the salary (the ratio to loan thing)

A 12k loan on a 12.5k is more than the 50% of the salary to loan ratio.

Her bank might be more favourable if she is on good terms with them.

bargainbetty

If her salary is £12.5k p.a., she is very unlikely to be offered a loan anywhere of £15k. Personal loans are very often limted to half (ish) of your salary, so that value is huge compared to her income.

You can ask, but I wouldn't hold your breath. Without being too personal, is there a reason she needs such a large sum?

endaf

Hi, many thanks for the quick replies.
yeah her wages are quite low but has excellent credit so thought it might be go in her favour.
looks like you're both suggesting that anything over £6250 is unlikely to be accepted, am i right? Would taking the loan out for longer be looked at favourably at all? so that the lender sees she wouldnt be over comitting herself etc?

StuC75

unlikely to meet several parts of there criteria..

• Home Improvement Loans are only available to home owners
• If the loan is to repay other debt (refinancing), the minimum age is 22 years old
• For loans under £15,000 the maximum term is five years, except for home improvements which is 10 years
• For loans over £15,000 the maximum term is 10 years, except for refinancing which is seven years
• Loans over £15,000 used to refinance existing debt are only available to homeowners

• Aged between 18 and 74, earning over £10,000 a year
• You're in full time employment with no probationary period or you've been self-employed for over two years or have a regular income e.g. pension
• You've lived in the UK at least three years
• You've a UK personal current account

Tixy

I don't think extending the length of the term will make it more likely she will get a large loan. She might live at home now and have low outgoings - but might well not in 10years time.
A lot of lenders won't lend over 7years for unsecured loans.

She may get something a little more than 50% of her income, its not an exact science, but its a pretty good guideline. Certainly to get new credit to lend her more than her salary would be unheard of in the current lending climate.

She could perhaps try the nationwide soft search loan application - which doesn't put a search on her credit file and might give her an indication as to whether she might be accepted or she could try talking to her own bank to see if they could give her any indication of what they might lend to her.

endaf

yeah ive been thinking the same with Nationwide, the soft search would be a good indication. she did do a soft search with them a few months ago for £10,000 & although at a higher APR than the advertised rate it didnt mention anywhere that it would be declined. might be best to try there again then?? ive also mentioned to her about trying with her bank. think i'll push her to do those as looks like the tesco road is a big no no!

StuC75

You seem to have quite a vested interest in her getting the loan; why arent you applying yourself.

This has the makings of a "my boyfriend ran off after spending my loan money" thread in a few months...

tell_it_how_it_is

StuC75 wrote: »

You seem to have quite a vested interest in her getting the loan; why arent you applying yourself.

LOL, I was kind of getting that impression myself from how I read the posts!

OP, genuinely, what is the loan for, as what you state on an application would also have its own positive or negative effect (though I'd be surprised if she got £15k full stop, tbh).

endaf

i literally lol'd at those last posts!!
im just trying to help my girlfriend as much as i can, by getting her the best deal/options that are available to her...i assumed thats what you did in relationships, help each other out?! i have no vested interest in her getting a loan or being refused a loan.
as for the reason for the loan, im sorry but thats private, what i can say is that its not for the usual consolidation, home improvements etc.
it would be appreciated if we can now get back to the actual topic of the thread. thanks. contructive help always appreciated.

StuC75

glad you kept a sense of humour through the statements.. Guess it was the comment of 'think i'll push her to do those ...'..

on 12k salary - also need to consider what her net pay would be for affordability reasons; per my earlier post where it stated Tesco lending criteria on Home Owner status \ Amount \ Term \ Purpose (Have a list to select from on the application form). This could affect full applications anywhere given what there criteria may be..