Loans available on low income?

Loan_soldier

Hello,

I am self employed for one year and currently earn less than 10k pa.

I am looking to get a loan but my bank has said it wouldn't consider me because, I havent been trading long enough another because my income was too low.

These were not official applications, just phone calls to get an idea.

My credit rating/score is excellent as I have never had any real credit another than an overdraft which is now paid off but I still have £1000 limit.

Is there any lenders who would consider me?

I would be prepared to go for a gurantor loan but they appear to be a rip off.

Any advice would be grateful received.

CLAPTON

how much do you want to borrow
do you currently have any debt


if you have never had any credit then you will NOT have an excellent credit history of repaying debt properly as you have no history for lenders to base their decision on.

19lottie82

Guarantor loans are pointless. They are just a fancy way of dressing up someone else taking out a loan for you and agreeing to pay it if you don't. Therefore it's a better idea to get the would be guarantor to take out a lower rate "normal" loan in their name and you repay them each month. The risk to the guarantor is the same, in fact, less as the apr will be lower.

Loan_soldier

CLAPTON wrote: »

how much do you want to borrow
do you currently have any debt


if you have never had any credit then you will NOT have an excellent credit history of repaying debt properly as you have no history for lenders to base their decision on.

As much as I can get, I am looking for 10k minimum.

No debt.

I had an overdraft which has been repaid having never had any extra charges or anything like that.

As this has been settled my experian report stated I have an excellent score 987, I know this is arbitrary but I technically have a settled credit account.

The overdraft is still available to me but I don't use it.

Loan_soldier

19lottie82 wrote: »

Guarantor loans are pointless. They are just a fancy way of dressing up someone else taking out a loan for you and agreeing to pay it if you don't. Therefore it's a better idea to get the would be guarantor to take out a lower rate "normal" loan in their name and you repay them each month. The risk to the guarantor is the same, in fact, less as the apr will be lower.

I thought as much.

Thanks

27col

You're not likely to get 10k if all you earn is 10k.

Tixy

Is this a personal loan you are wanting or a business loan?

No commercial lender will think that a £10k personal loan is serviceable with an income of under £10k.

What is the money to be used for? perhaps people can suggest alternative solutions?

Loan_soldier

Tixy wrote: »

Is this a personal loan you are wanting or a business loan?

No commercial lender will think that a £10k personal loan is serviceable with an income of under £10k.

What is the money to be used for? perhaps people can suggest alternative solutions?

It wouldn't really be a business loan.

However if I was more likely to get the funds I would do it as a business loan.

It is basically to fund the purchase of a property, I know this is probably not allowed however I can not find any means of raising the money even though it is a relatively small amount and a no risk investment.

I can not get a mortgage because of lack of trading history and I don't want to borrow enough(?!) money.

I would love any advice or suggestions on how to raise the money.

Quite frankly I'll consider anything.

PeacefulWaters

You're living in cloud cuckoo land if you expect to get credit at a sensible rate of interest.

National_Debtline

Hi Loan soldier

The only risk assessment that matters is that made by a potential lender - and I doubt they've ever classed any investment as absolutely zero risk!

Any basic lending model will factor in some sort of security or insurance against the likelihood of default by the borrower. Where an unsecured loan is concerned, that security will include a suitable earnings-to-loan ratio and any guarantees given by third parties, not to mention of course a rate of interest reflecting the perceived risk level.

I can only suggest that you have some informal conversations with brokers and just be as open with them as possible about what you have in mind and how you envisage the investment maturing. Maybe they will come up with some useful (legitimate!) suggestions. Please don't pay any upfront brokerage fees though as these guarantee nothing.

If it is simply a residential property you are hoping to acquire I think you have your work cut out, but good luck.

Dennis
@natdebtline

Gaz83

Loan_soldier wrote: »

a no risk investment

To you, maybe. Not to a lender.