Possible to get an overdraft or loan with just a job offer?

halcyon1

Hello,

I have recently been offered a job after a long period of unemployment and applications. The salary is very good (over £30,000), however it does not start until August and I am currently very overdrawn.

Knowing that I will soon have a good income (and have the offer letter and job contract to prove it), does anyone know if I will be likely to have from a bank either

a) A significant extension to my overdraft (I am already £1,000 overdrawn; another £1,000 added to my overdraft limit would see me through until my job starts)

or b) The possibility of a loan, secured on projected future earnings

I currently have an outstanding student loan and an overdraft (that is still within agreed limits), but no other debt at all and so I assume a good credit rating. I am not looking to borrow huge amounts, rather just to get through to when my job starts, ideally up to £1,500.

If anyone had any knowledge or advice on this topic I would be extremely grateful.

Best wishes and thanks in advance

michael1983l

I very much doubt that any creditor would take a future job offer into consideration. Afterall there is no guarantee you will even choose to start the job and the company could withdraw the job offer at any time. They would make their decision based on someone who is unemployed and is already in debt, so basically I'd predict you would be refused.

greenlightluke

halcyon1 wrote: »

Hello,

I have recently been offered a job after a long period of unemployment and applications. The salary is very good (over £30,000), however it does not start until August and I am currently very overdrawn.

Knowing that I will soon have a good income (and have the offer letter and job contract to prove it), does anyone know if I will be likely to have from a bank either

a) A significant extension to my overdraft (I am already £1,000 overdrawn; another £1,000 added to my overdraft limit would see me through until my job starts)

or b) The possibility of a loan, secured on projected future earnings

I currently have an outstanding student loan and an overdraft (that is still within agreed limits), but no other debt at all and so I assume a good credit rating. I am not looking to borrow huge amounts, rather just to get through to when my job starts, ideally up to £1,500.

If anyone had any knowledge or advice on this topic I would be extremely grateful.

Best wishes and thanks in advance

The banks can withdraw an overdraft at any time - and taking into account you are so far into it, I'd doubt they'd extend it.

Unless of course regular money has been going into the account (which taking your situation of unemployment, I doubt it)

So short answer is; no, I don't think they'd extend it and I wouldn't recommend a loan either - possibly a credit card? Vanquis or Aqua? If you're so certain you will have money and get accepted this could be a possibility - and as long as you pay it off when you should, you won't be stung with interest. Whether you'd get £1,500 is another thing...

Good luck for your new job and whatever you do, do NOT take a payday loan to tide you over.

Pimp yourself out on the street if you must.

chalkie99

another £1,000 added to my overdraft limit would see me through until my job starts

But you won't get paid when your job starts, presumably there will be another month to get through until payday with the additional expenses of travel to and from work. Have you budgeted for that?

The possibility of a loan, secured on projected future earnings

There is no security from future earnings any more than there is security in your job. It will be August 2015 before your job offers any security. Until that time your employer can dismiss you without even giving you a reason.

Your best bet is friends and family or, as suggested, a credit card if you can trust yourself to use it only for absolute essentials - then live on beans until September.

DCFC79

Just look for some temp work, you can get 3 months worth of temp work. Even if its boring work, your only there a short time.

YorkshireBoy

greenlightluke wrote: »

...as long as you pay it off when you should, you won't be stung with interest.

And where's the money coming from to pay in full the April, May, June, & July statements so as to avoid the circa 59.9% APR interest?

The OP doesn't have any money...that's why he wants an extension to his overdraft facility ideally, since it doesn't require a monthly payment to service the debt.

greenlightluke

YorkshireBoy wrote: »

And where's the money coming from to pay in full the April, May, June, & July statements so as to avoid the circa 59.9% APR interest?

The OP doesn't have any money...that's why he wants an extension to his overdraft facility ideally, since it doesn't require a monthly payment to service the debt.

Obviously didn't read properly - I blame losing an hour this morning...

meer53

halcyon1 wrote: »

Hello,

I have recently been offered a job after a long period of unemployment and applications. The salary is very good (over £30,000), however it does not start until August and I am currently very overdrawn.

Knowing that I will soon have a good income (and have the offer letter and job contract to prove it), does anyone know if I will be likely to have from a bank either

a) A significant extension to my overdraft (I am already £1,000 overdrawn; another £1,000 added to my overdraft limit would see me through until my job starts)

or b) The possibility of a loan, secured on projected future earnings

I currently have an outstanding student loan and an overdraft (that is still within agreed limits), but no other debt at all and so I assume a good credit rating. I am not looking to borrow huge amounts, rather just to get through to when my job starts, ideally up to £1,500.

If anyone had any knowledge or advice on this topic I would be extremely grateful.

Best wishes and thanks in advance

Call your bank and ask them. I assess temporary overdraft increases and loans, and will, in some cases, accept copies of job offers and contracts to help me make a decision.

A lot depends on how your account is run at the moment and how much of a risk the bank feels you may be. It might not be declined but the only way to find out is to ask them.

YorkshireBoy

meer53 wrote: »

Call your bank and ask them. I assess temporary overdraft increases and loans, and will, in some cases, accept copies of job offers and contracts to help me make a decision.

A lot depends on how your account is run at the moment and how much of a risk the bank feels you may be. It might not be declined but the only way to find out is to ask them.

...but tread carefully!

There's a chance that the bank could be spooked.

OP has had a "long period of unemployment". If the bank weren't aware of this they could call in the existing facility?

meer53

YorkshireBoy wrote: »

...but tread carefully!

There's a chance that the bank could be spooked.

OP has had a "long period of unemployment". If the bank weren't aware of this they could call in the existing facility?

Possibly, but thats why i said it would depend on how the account is being run at the moment. It would be harsh for them to remove the overdraft if the OP has a secure job offer in place.

Only way to find out is to make the call.

Daedalus

YorkshireBoy wrote: »

...but tread carefully!

There's a chance that the bank could be spooked.

OP has had a "long period of unemployment". If the bank weren't aware of this they could call in the existing facility?

IMO, 'Fully payable on request' isn't remotely accurate. A mainstream bank just wouldn't put someone into financial difficulties. The only time I have known this to happen is when the customer hasn't made the bank aware of their situation. A bank would postpone a reduction or request minimal reduction (~£10/month) for 3 months.