Reason for loan - how does this affect decision?

RuthnJasper

It is the bank's money; I think it's fair enough for them to ask why you want to borrow it.

As others have suggested, you are more likely to be accepted if you say "I'm thinking of getting another car; I've been around a few second-hand dealers and had a look on Auto Trader. There are a few good deals for around the £5,000 mark, so that's what I'd like to borrow and here's how I'd like to pay it back." than if you say "To be honest, mate, a couple of us are thinking of going to Las Vegas for a couple of weeks and sp*nking the lot on the casinos..."

I don't have any problem with explaining why I'd like a loan.

Best wishes in any case.

JKSandy

I think selecting the real reason is always best.

I would never get a loan for a holiday, and if you rent selecting 'home improvements' would, to me, sound dodgy.

CKhalvashi

JKSandy wrote: »

I think selecting the real reason is always best.

I would never get a loan for a holiday, and if you rent selecting 'home improvements' would, to me, sound dodgy.

In social housing, this would not necessarily be the case, especially if your long-term plan is to buy the property.

For private tenants, however, I agree with this.

Morglin

Many banks appear to be so keen to lend at the moment, I shouldn't think they will be that fussed, as long as you have an excellent credit record and appear to be able to afford it.

It's obviously getting back to the 'old' days - endless bumph arriving, again, offering money....:wall:

Lin

ConsumerWizkid

Essentially if you have bad credit then you do not want to suggest you are borrowing for a frivolous reason.

A good reason for to apply for a loan is to repair a car or buy a new car if repair is not an option. Home improvements could be a good reason but if you are struggling financially, maybe improving your home can wait.