What size loan should I ask for?

Troubadour

Hello – I’d really appreciate anyone’s advice as I am a bit of a money-novice!

I am looking to get a Personal Loan but I am not quite sure how much to apply for. I am 35 years old, self-employed & also studying. Last year my business earned £12,300. I am currently living at my mother’s house. I‘ve got a couple f credit cards that I’ve never missed a payment on, & according to a little online research, my credit rating is good.

I approached Natwest & they said that if I applied for between £10,000 & £12,000, I’d likely be accepted, and that I could try applying for more. I am thinking of applying online for a £15,000 loan over 7 years with Sainsbury’s (& I meet their general qualifying criteria).

My questions are:
How do I know how much I should apply for? (as I don’t want to be refused & damage my credit score)
Do I just apply & see what they say?! Or Do I apply for a lower loan to increase my chances of acceptance?

Thanks a lot for your time… (-:

AFK_Matrix

The rule usually is that banks won't loan about 50% of your wage and it's usually a lot less than that. So 15k loan on an income of £12,300 is not going to happen I'm afraid.

gb12345

Here's a radical thought - why not apply for the amount that you actually need to borrow, rather than the amount that you think you will be allowed to borrow (assuming that is in the less than 50% of income range).

There is no point borrowing more than you actually need - you'll just be paying interest for nothing.

liamfahy

You don't state what you need the loan for but if you already have credit cards I would look to pay down the balance on them before you get into more debt.

Macca83_2

Am I the only one that thinks its strange for a person to be asking 'how much should I borrow?'

Surely to borrow is for a specific need and you should already have a figure in mind?

OneLife_OneShot

If you earn £12.3k you won't get anywhere over £6k and if you have a lot of available credit on cards you'll get less.

DCFC79

Macca83 wrote: »

Am I the only one that thinks its strange for a person to be asking 'how much should I borrow?'

Surely to borrow is for a specific need and you should already have a figure in mind?

No your not the only 1 who thinks its strange.

Apples2

Troubadour wrote: »

(& I meet their general qualifying criteria).:

I think you'll find you are a Country Mile away from acceptance.

If you are living at mums but have credit card debts, how are you ever giong to afford to repay a loan..any loan?

Macca83_2

I'll give it 3 months before we see a 'I've been mis-sold a Natwest loan' thread

Troubadour

Thanks to everyone who took the time to reply… I really appreciate it.

I’ll take heed of the advice! (-:

dresdendave

Apples2 wrote: »

If you are living at mums but have credit card debts, how are you ever giong to afford to repay a loan..any loan?

The OP states he has credit cards, I can't see any mention of credit card debt though. Perhaps he uses the cards properly and pays in full each month.