Is this possible

newbridge

Hiya,
My niece is looking to get a personal loan of 25k for a travelling holiday, car and spend on few bits and bobs here and there. She is single and earn around 38k; has got good credit history and around 20k worth of credit cards at 0 balance right now.
What are the chances of her getting a loan? I thought it to be very thin but she seems very confident. She would be spreading the loan repayment over 7 years which would make it only a small % of her take home monthly pay.

your comments appreciated..

DCFC79

She earns 38k so surely shes been saving ?

20k worth of credit cards, only need 1 card. Id be surprised if she managed to get the 25k.

eschaton

newbridge wrote: »

Hiya,
My niece is looking to get a personal loan of 25k for a travelling holiday, car and spend on few bits and bobs here and there. She is single and earn around 38k; has got good credit history and around 20k worth of credit cards at 0 balance right now.
What are the chances of her getting a loan? I thought it to be very thin but she seems very confident. She would be spreading the loan repayment over 7 years which would make it only a small % of her take home monthly pay.

your comments appreciated..

She has more chance of winning the lottery.


She also needs a light bulb to brighten up her day. Earns £38k, single, £20k debt and wanting another £25k.


She has problems.

somethingcorporate

eschaton wrote: »

She has more chance of winning the lottery.


She also needs a light bulb to brighten up her day. Earns £38k, single, £20k debt and wanting another £25k.


She has problems.

Try again, she doesn't have any debt, just CCs with available balances.

I don't think she'll get it - she may get close to £20k if she is squeaky clean and has no other debt. She should talk to her bank as they "know" her best.

tiger_eyes

Face, meet palm. Your niece is going to be shackled to interest payments for the rest of her life if she can't see the problem in taking out a seven-year loan for a holiday. What's she planning to do next time she wants a holiday, when she still isn't saving money and she's also repaying the previous holiday plus interest? Another loan? And the time after that?

eschaton

somethingcorporate wrote: »

Try again, she doesn't have any debt, just CCs with available balances.

I don't think she'll get it - she may get close to £20k if she is squeaky clean and has no other debt. She should talk to her bank as they "know" her best.

Fair enough, missed that.


But, still, £38k income, single and needs to borrow £25k?


Needs to learn to save, it's not difficult.

somethingcorporate

eschaton wrote: »

Fair enough, missed that.


But, still, £38k income, single and needs to borrow £25k?


Needs to learn to save, it's not difficult.

Agreed on that point, especially borrowing for those reasons!

BillJones

Pretty unlikely, and even less sensible.

Ask her this, if she's not managed to save so far, so has been spending all she earns, then how is she planning to fund the repayments for the next seven years?

newbridge

Apparently she has been saving/investing regulary but is locked for few years. Her argument is that since it would return her better returns borrowing at current loans rates ~6.5% might be cheaper.

I idea of taking it for 7 years instead of using credit cards is to spread out load with a high possibility of repaying early in few years if need be.

By the way, she would be taking a sabbatical for 6-8 months for once in a life dream travel(drive!) holiday in US.

newbridge

Not that I am in favour of her plans tho...but you know todays young generation and all.

newbridge

DCFC79 wrote: »

20k worth of credit cards, only need 1 card. Id be surprised if she managed to get the 25k.

20k is made up of 2 cards ( both with banks she has accounts with)