Career Development Loan Rejection

oggy_1991

I'm a student into my second year of an Msc and I have recently just applied for a career development loan as I am struggling with living expenses. However this was rejected based on my credit scoring.

From this letter I have since obtained my credit score and as far as I can tell there is no issues with it. However as I have never had a credit card (i've used) and no loans will this affect my credit. Alongside this I have been in my overdraft for the past year so will that be a negative? I am on the electoral roll and have paid bills for a number of years though.

I am going to appeal however would appreciate some advice on the best way to go about appealing (i'm only 22 and not very savvy with banks, finances etc.). Theres a couple of things i'm wondering about ... firstly if I asked for less money would this make a difference? Currently i've asked for £2400 but I potentially don't need this much. Secondly if my credit report isn't good enough (which they report it isn't) am I able to put forwad my parents as a guarantor?

Any advice to help my appeal be successful would be very helpful thankyou.

CLAPTON

if your parents are prepared to be guarantors then they should get a loan themselves and then lend you the money

oggy_1991

But there are no benefits in that like there is in a career development loan where the interest is paid for by the governement until my course finishes.

whodathunkit

oggy_1991 wrote: »

But there are no benefits in that like there is in a career development loan where the interest is paid for by the governement until my course finishes.

As you've only got a few months to go before finishing your course, that benefit isn't really worth all that much.

CLAPTON

oggy_1991 wrote: »

But there are no benefits in that like there is in a career development loan where the interest is paid for by the governement until my course finishes.

minimising interest paid is a good idea but it still might be cheaper to ask your parents

redpete

oggy_1991 wrote: »

as I have never had a credit card (i've used) and no loans will this affect my credit

little history of successfully handling credit will worry some lenders.

. Alongside this I have been in my overdraft for the past year so will that be a negative?

Not being able to pay off an OD would worry some lenders.

The importance of these would depend on the lender and type of loan. I would imagine a Career Dev loan would have different criteria than normal (e.g. lack of income would be expected).

oggy_1991

I still think its worth me asking the co-op to reconsider as i'd prefer not to have to ask my parents. So currently i'm trying to figure out what is best to include in my letter.

CLAPTON

oggy_1991 wrote: »

I still think its worth me asking the co-op to reconsider as i'd prefer not to have to ask my parents. So currently i'm trying to figure out what is best to include in my letter.

probably useful to provide evidence of a job offer so they can be sure of repayment

what is the APR of the loan once the course ends?

BrassicWoman

most Masters degrees are 1 year - second year = part time or resits?