Stating income on a loan application + other queries

BoroPhil

Hello,

I want to apply for a 14k loan for a number of things, to get a car (7k ish), put some money towards our wedding (2k ish) and pay off 5k of credit card (which are on 0% rates)

I have a few things I’ve been mulling over.

I earn 28k, but it will be the combined income of me and my partner who are paying it off (she earns 20k), but I don’t want to put her on the application as she has a poor credit rating. Is there a way I can inflate my income to represent this (as other income perhaps)? I was thinking I could put zero rent costs, but I’m not sure if they would think this was odd? I don’t want to be accused of deceiving them but I’d don’t want to underestimate our ability to pay it back.

Secondly, with respect to the 0% credit cards, I’d obviously prefer to transfer them to another 0% card (they both expire around Feb), but I’m concerned after I get the loan I might struggle to get more credit? So I’m thinking it might be best to pay them off with the loan, rather than get a smaller loan then get stuck with two credit cards at higher interest rates. Or do you think this would not be an issue?

Thirdly, with respect to the loan provider, am I better off going with a bank I have a link with? i.e I have a Tesco credit card currently and note they offer one of the best loan rates (this card is paid off in full every month). Or should it make very little difference?

I have an unblemished credit rating and the only other credit I have is two cashback cards (Tesco / Santander)

Any thoughts welcome.

System

Not to be negative but if anything happens that sours your relationship with your partner then you will be liable for this loan. Even though she has has benefited.

On practicalities if you have a good credit rating then you should have no problem getting a loan for this amount on 28k. I would shop around for the best rate/deal. HSBC offer 6.2% on a loan of this size.

Moneymash

Is your salary of 28k before or after tax? If you currently have debt of 5k, you may not be able to get a loan of 14k if the application is in your name only, what is the current credit available to you, and what percentage of that is debt?

Also, how long does the 0% rate last on the credit cards?

BoroPhil

Thanks for replies,

Current credit/debt is

Barclaycard 8.5k/1.4k (0% runs out Feb)
Halifax 3.7k/3.6k (0% runs out Feb)
Santander 3.5k/zero
Tesco 3.5k/zero

Total 19.2k/5k (26%)

28k is before tax.

HappyMJ

BoroPhil wrote: »

Thanks for replies,

Current credit/debt is

Barclaycard 8.5k/1.4k (0% runs out Feb)
Halifax 3.7k/3.6k (0% runs out Feb)
Santander 3.5k/zero
Tesco 3.5k/zero

Total 19.2k/5k (26%)

28k is before tax.

You are already stretching yourself. They only take into what you can borrow and not what you have actually borrowed. I would not suggest you add another 9k of debt onto that figure as you will be very close to not being able to afford to meet your repayments. Stick with the current transport you have and save for the wedding and get those debts paid off as quick as possible. Once Barclaycard is paid off you may ask them for a balance transfer offer which could give you some long term debt at a low interest rate such as 6.9% to repay your other debts on which the 0% offers are expiring. I'd close the accounts that you no longer wish to use if the interest rates are not attractive but try speaking with Santander and Tesco first they may have some good offers too.

DCFC79

I agree with the previous posts OP, cut back on your spending so you have more to pay off the debts ( which ever 1 you start with is up to you ) and make a start saving for the wedding.

Your bank is the best bet to try.

Moneymash

BoroPhil wrote: »

Thanks for replies,

Current credit/debt is

Barclaycard 8.5k/1.4k (0% runs out Feb)
Halifax 3.7k/3.6k (0% runs out Feb)
Santander 3.5k/zero
Tesco 3.5k/zero

Total 19.2k/5k (26%)

28k is before tax.

You would struggle to get a loan of 14k, even though your debt to credit ratio is low. As other posters have said, think about a cheaper car and try and get 0% balance transfers for the Barclaycard and Halifax amounts. As for the wedding can you ask for cash presents to put towards the wedding, or ask family and friends to contibute to the wedding as their Christmas present to you and your girlfriend e.g. a couple of family members agree to do some of the catering, someone else offers to make the cake, someone else run up the bridesmaid dresses, maybe someone has a classic car you could use as transport free of charge, it's worth a try.