loans

anqet

Hi, is there a rule of thumb regarding loans available? Like a ratio of available loan to income? I don't have any loans or credit card debt (I use CCs though). Do they take mortgage into account. I might need a short term loan (<3 months) and curious how much I can stretch. Thanks.

gb12345

anqet wrote: »

Hi, is there a rule of thumb regarding loans available? Like a ratio of available loan to income? I don't have any loans or credit card debt (I use CCs though). Do they take mortgage into account. I might need a short term loan (<3 months) and curious how much I can stretch. Thanks.

Income ratio is one of many factors lenders will use and it is about 50% as a rule of thumb, but includes all unsecured (and will include credit card limits).

Also, legitimate lenders won't lend to you for 3 months, the minimum term will be 12.

poppasmurf_bewdley

The usual ratio of loans to earnings is about 50%, excluding mortgages, so if you earn £20k, you can expect to be allowed to borrow £10k. But don't forget that available credit, such as credit card limits, are also taken into account.

So if you earn £20k, and have a £5k credit line on your credit cards, you would only be allowed to borrow £5k, even if you haven't taken up the credit card borrowings.

And if you already had a loan of £5k, then your credit would in all probability be exhausted.

And all this is subject to having a clean and healthy credit file.

Apples2

It's hardly a loan if you wish to repay it in just 3 months.

You need to repay over 30% of what you borrowed in the same month you borrowed it so it makes no sense at all to borrow that much.

If you are struggling like this, look for ways to manage what you have, not borrow to carry on your current spending pattern.

anqet

edited for privacy reasons

argomatt

Have a look at zopa.com

They offer loans over a minimum period of 12 months, though there is no penalty for paying it back early, so you could just use the money for 3 months then pay it back in full without charge.

Matt