Credit Rating 975

1trainer1

I need a Loan for Home Renovations and have just checked my credit rating and it is coming in at 975 Excellent.

I am looking for a loan of about £15,000 over 60 months.

What are my chances of being accepted?

My current financial circumstances are as follows

Annual Income : £24,000
Mortgage : £495 per month
Household Expenses : £300 per month
Car Running costs : £100 per month (fuel and insurance)

I have got savings of over £5,000 (saved in the last 18 months) and need another £15,000 to get everything completed before Christmas ideally

[Deleted User]

It's a bit of a stretch on that income, but you never know. Any other available lines of credit will count against you, as will an absence of credit history.

Ignore the 975 score by the way. You're the only one that sees it.

Tixy

Are you looking for an unsecured loan?

If so thats quite a large loan relative to your income.

Aside from your mortgage do you have any other active credit accounts? do you have any other debts?

Your own bank is usually a good place to try. Particularly if in your case they'll presumably be able to see that you have managed to save from your income every month.

You-kip

1trainer1 wrote: »

I need a Loan for Home Renovations and have just checked my credit rating and it is coming in at 975 Excellent.

I am looking for a loan of about £15,000 over 60 months.

What are my chances of being accepted?

My current financial circumstances are as follows

Annual Income : £24,000
Mortgage : £495 per month
Household Expenses : £300 per month
Car Running costs : £100 per month (fuel and insurance)

I have got savings of over £5,000 (saved in the last 18 months) and need another £15,000 to get everything completed before Christmas ideally

You'll never know until you apply.

I do know other posters on the forum have scores of 975+ but they get turned down because they've got Bankruptcy on their credit files.

The_Boss

Wanting that amount of money relative to salary and other outgoings seems very optimistic.

Irrespective of what the worthless credit score says, your application is scored not the person. The credit file data is only one part and nobody knows how specific lenders weight the data. The sum of money you want and your salary might even be enough for them to reject the application without considering any other data.

1trainer1

Tixy wrote: »

Are you looking for an unsecured loan?

If so thats quite a large loan relative to your income.

Aside from your mortgage do you have any other active credit accounts? do you have any other debts?

Your own bank is usually a good place to try. Particularly if in your case they'll presumably be able to see that you have managed to save from your income every month.

I am looking for an Unsecured Loan,

I have two credit cards but they get paid in full every month via Direct Debit.

Don't have any other debts apart from my Mortgage.

I might try and get a smaller loan and try to save up a bit more to pay off stuff gradually

missybct

If you have a mortgage/home owner, is there a particular reason why you are looking for an unsecured loan and not a secured loan against the property?

1trainer1

missybct wrote: »

If you have a mortgage/home owner, is there a particular reason why you are looking for an unsecured loan and not a secured loan against the property?

Not really, just from what I have read a secured loan is at a higher interest rate.

The other reason is if I have a secured loan on a property what would happen if I was to try and sell the property?

Thrugelmir

1trainer1 wrote: »

Not really, just from what I have read a secured loan is at a higher interest rate.

At the level of borrowing you are seeking. More likely to be the reverse.

StuC75

Secured loans could present other problems down the line:-

Increases the Overall Loan To Value rate that the homeowner is working within - i.e. say mortgage is at 75% LTV, they take extra and it pushes up what is 'in use'..

So then when they may need to remortgage - lenders may not be happy with a second charge in place (affecting who they can then use)..

Seems quite ambitious with the amount & term it is taken over - places such as Tesco allow much longer term for home improvements... the OP could save the savings in payments to make overpayments and reduce the term back down (as a bit of a workaround)..

missybct wrote: »

If you have a mortgage/home owner, is there a particular reason why you are looking for an unsecured loan and not a secured loan against the property?