Securing a loan without a job - advice desperately needed

steve237

OK, here's my situation:

I resigned from my job after 11 years employment as I wanted a change, and further to divorce, I used this gap to spend more time with my two children while I decided what path to chose with my career.

During this time I fell quite ill, spending 6 weeks in hospital, only being discharged a few days ago while I continue my recovery at home.

Now I face a problem... I am due to pay 6 months rent in a weeks time - money I don't have due to some unexpected bills as well as the cost of divorce. Unfortunately, my landlord doesn't accept payment monthly payments :sad:

I have approx £1000 and have a £3500 overdraft with the Co-operative bank, but the last thing I want to do is use that facility to pay my 6 months rent due to the high interest rate.

I've never claimed benefits before until recently, but thankfully I currently receive just about enough to cover the cost of living. However, I desperately need to find the cash to pay my next 6 months rent - £4100.

I've not checked my credit file for a while, but last time I did, it was perfect. I've had many credit cards over the years used solely for cashback/rewards, always paying off in full every month. Before divorce, I had a mortgage for over 10 years and never missed a payment. I've also had a loan of £10,000+ in the past and never missed a payment.

However, I've never applied for a loan before while in-between jobs and I'm pretty nervous about it and I'm looking for any advice about which banks/companies may be best to look at first given my circumstances. I'm being realistic and aware I probably won't be able to get the very bet rates on the market, so I don't want to litter my credit file with rejections!

As well as applying for a loan, I was considering a 'money-transfer' credit card such as the MBNA Platinum card which allows you to transfer money to your bank account, and provided you pay the minimum monthly payment (as you would do a loan), stays at 0% for 32 months - outlined on MSE here: http://www.moneysavingexpert.com/loans/plastic-loans#moneytrans

So I'm desperately after any advice, such as:

• Does anyone have any experience of these 'money-transfer' credit cards?

• What are the best loan companies/banks for getting a loan of around £3500-4000 over approx 3-4 years?

• Is it worth me speaking to my bank (Co-op) and explaining my situation and asking for a loan/reduction in overdraft interest rate, or am I risking them removing my overdraft once they learn I am about to max it out and don't currently have a job?

Any advice at all will be much appreciated, as my rent due date is rapidly approaching!


Thanks in advance for any advice.

TadleyBaggie

No income, no loan. Simple as.

steve237

Honestly, I hate not being at work and having the freedom to save and enjoy life properly. I'm only temporarily out of work due to illness, I've worked all my life and am sure I'll be back working again quickly.

Regarding the interest rate on the overdraft, I think it works out at around 1.4% a month.

I am sure some people can get a loan who are in between jobs and have a perfect credit score?

Gaz83

steve237 wrote: »

I am sure some people can get a loan who are in between jobs and have a perfect credit score?

I would doubt it. Perhaps eight years ago. Not now.

The problem is, people are never 'between jobs'. Being 'between jobs' isn't correct. It's more correctly called 'being unemployed'. And a person has very little control over how long they're going to be unemployed for.

No responsible lender will give you a loan if you've no income to service it. And the only people who will consider it will charge astronomical rates of APR.

dealer_wins

No lender is going to offer you a loan you cannot afford according to your current financial position. If they did you would be back here next year claiming it was mis-sold and wanting it written off.

Surely benefits you receive should be sufficient to cover your rent and living expenses, have you checked you are getting everything you are entitled to?

boo_star

You need to speak to your council offices housing department ASAP.

Rinsing your bank accounts is a short term solution that won't end well.

DCFC79

TadleyBaggie wrote: »

No income, no loan. Simple as.

I agree with all the replies especially this. You can't determine how long you would be out of work for and there is no perfect credit score as they don't exist, you mean a credit history right ? Well its no guarantee that would lead to a loan.