We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Chances of a loan?

Tom1981
Tom1981 Posts: 2 Newbie
Hi all,
Hoping someone who's been in a similar situation might be able to offer me some advice- I'm looking to get an unsecured loan.

The problem I have is I suspect the same problem many people have- I don't know how much I can borrow, and it seems like the only way to find out is by applying for loans- but then if I apply and don't get the loan, I reduce my credit rating further.

My income is £20,000, and the ideal amount I'd like to borrow is also £20,000. I don't currently have any other debts. Does anyone have any recent experience/general knowledge of whether this seems to be an amount that I could likely be lent? (I'm particularly interested in anyone with knowledge of Tesco loans, as the offer of a fixed rate appeals to me.)

Thanks in advance

Comments

  • Gaz83
    Gaz83 Posts: 4,047 Forumite
    1,000 Posts Combo Breaker
    A general rule of thumb is that lenders will consider lending 50% of your yearly salary.

    You'd be very unlikely to get a £20,000 loan on a salary of £20,000 from a mainstream lender.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • Gaz83
    Gaz83 Posts: 4,047 Forumite
    1,000 Posts Combo Breaker
    There are other ways to find out bar applying. Some banks let you do a soft search. You could also talk to someone at your bank.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    What do you want to borrow £20k for?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Are you a home owner?
  • bayzat
    bayzat Posts: 38 Forumite
    You are extremely unlikely to get one times your annual salary.
  • Thanks all- that gives me a useful idea about what's do-able. Not what I wanted to hear, but certainly what I needed to know! ;-)

    PS. The money is for home improvement. I'm not a home owner- my partner is, but she has other loans against her name. So it may prove easier for us to go through her...
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.3K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.3K Work, Benefits & Business
  • 604K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.