Is it possible for me to get a loan from Natwest?

LemonyS

Hi,

I'm 22 years old with a below average credit score (around 450). I have both a Natwest Business bank and Personal bank account.

My personal bank account has only had around 5k worth of deposits over the last 6 months. However my business bank has around £40k total over the last 18 months. I make payments from my biz bank for personal stuff, and my accountant singles them out and submits them as dividends, so a salary isn't really paid into my personal account.

EDIT// I should point out that both accounts have < £1k at the moment.

I'm looking for a personal loan of £5,000 from Natwest. I'm wondering if they are likely to accept this? Is this figure too high? Is there anything I should do (like telling them I can pay it off within a certain period) to increase my chances?

I appreciate any help!

Thanks.

Felix_Schalyz

I can't see how anyone is going to take a guess on the likelihood of a loan without knowing your Credit History.

Credit cards?
Missed/late payment?
Salary?
Available credit?
Total debt?
Defaults?
CC'js?

DCFC79

The number 450 is pointless score so forget about that since lenders dont refer to it, I don't even think they see the number, what they focus on is any defaults you have etc.

DCFC79

LemonyS wrote: »

Is there anything I should do (like telling them I can pay it off within a certain period) to increase my chances?

I dont think that is enough to tip the balance in your favour to get a loan from Natwest.

LemonyS

Felix_Schalyz wrote: »

I can't see how anyone is going to take a guess on the likelihood of a loan without knowing your Credit History.

Credit cards?
Missed/late payment?
Salary?
Available credit?
Total debt?
Defaults?
CC'js?

Credit cards? - 4
Missed/late payment? - Yes, nothing in the last 6 months though.
Salary? - £10,000
Available credit? - 10%
Total debt? - Around £4k
Defaults? - No
CC'js? - No

gb12345

LemonyS wrote: »

Credit cards? - 4
Missed/late payment? - Yes, nothing in the last 6 months though.
Salary? - £10,000
Available credit? - 10%
Total debt? - Around £4k
Defaults? - No
CC'js? - No

So you earn £10k and have 4k of debts and want another 5k, which would take you up to a credit/salary ratio of 90% - you've no chance I'm afraid. As a rule of thumb lenders will normally look at a 50% ratio.

LemonyS

gb12345 wrote: »

So you earn £10k and have 4k of debts and want another 5k, which would take you up to a credit/salary ratio of 90% - you've no chance I'm afraid. As a rule of thumb lenders will normally look at a 50% ratio.

Thanks for the reply. That's bad news for me. So if I ask for £2.5k do I have a better chance?

DCFC79

LemonyS wrote: »

Thanks for the reply. That's bad news for me. So if I ask for £2.5k do I have a better chance?

Well that would still take you above the 50% threshold, you could ask Natwest what your options are but its by no means guaranteed.

davebirmingham

the 40k through the business account is fairly healthy so if they wont give you the loan you want then maybe ask for an overdraft

of course bear in mind that overdrafts are temporary and if you just sit in it then they quite often ask for it back and sometimes at short notice so generally you need to revolve it regularly if you want to keep the facility going

I found that out the hard way a few years ago when I just used it continuously without revolving it so I got stung and they suddenly withdrew it and told me to cough up and I only got about two weeks to do it or was it even just one week I got a bit of a shock and it put me in a flap I can remember that

luckily I was able to sort it out as it was only a few grand I think I just grabbed it off a couple of credit cards which thankfully I had available what a nuisance and then paying lodes extra in interest on the blinking credit cards what a twit I was but at least I was able to pay off the overdraft so oh well I learnt that one I wont do that again

if it had been more or if I hadnt had the credit cards handy then I might have been in a pickle so watch out if you do go down that route with an overdraft

LemonyS

davebirmingham wrote: »

the 40k through the business account is fairly healthy so if they wont give you the loan you want then maybe ask for an overdraft

of course bear in mind that overdrafts are temporary and if you just sit in it then they quite often ask for it back and sometimes at short notice so generally you need to revolve it regularly if you want to keep the facility going

I found that out the hard way a few years ago when I just used it continuously without revolving it so I got stung and they suddenly withdrew it and told me to cough up and I only got about two weeks to do it or was it even just one week I got a bit of a shock and it put me in a flap I can remember that

luckily I was able to sort it out as it was only a few grand I think I just grabbed it off a couple of credit cards which thankfully I had available what a nuisance and then paying lodes extra in interest on the blinking credit cards what a twit I was but at least I was able to pay off the overdraft so oh well I learnt that one I wont do that again

if it had been more or if I hadnt had the credit cards handy then I might have been in a pickle so watch out if you do go down that route with an overdraft

Thanks! I really appreciate the response.

Bear in mind this is 40k in income, not current balance.

Also, this is a personal loan not a business loan. I have 2 seperate account for personal and biz. Will they even take the business account into consideration?

I will apply tomorrow morning for a loan, if it fails, I'll ask for an overdraft.

Will keep you guys posted.

LemonyS

I was approved for a £3k loan paid over 2 years.

I will receive a letter and I need to send off proof and the underwriter will review it. Anything I should know or improve my chances?

Thanks for your help people.