Overdrafts.. In a bit of a pickle!

RMB12

Hiya, my first post here so hope this is in the right place!

So I need an overdraft or a loan. And I've NO idea where to start :-(

I've got some pretty weird circumstances..

I am currently doing something called a 'traineeship'. Basically it's a 7-week course run by a construction/engineering company which should be followed by an apprenticeship (assuming i don't make any big screw-ups on the course).

The traineeship is unpaid and if i pass and all goes ok, I should be placed on their apprenticeship programme at the end of the course. An apprenticeship with them would be relatively well paid, so around 1200 a month (ish!!)

I quit my low-paid job to do this course, so i started with no savings etc. I recieved a £1000 bursary but that's all gone having only recieved it a few days ago, i had a tax payment of £600 then rent of £400 :-(

I've got a little bit of money for the time being, but basically i need to borrow some, somehow! I would like to apply for a £500 overdraft and hope to combine that with another grant or bursary; i've been applying to a few different organisations for a small amount to get me through the rest of the course so if im lucky i won't need an overdraft etc.

My questions are..

Will i get accepted for one even though i have no means of proving i will have a job in sept?

Will it negatively affect my credit if i get declined?

I'm with barclays if it makes any difference. I think my credit score should be OK, i've got a phone contract, car finance etc and never defaulted!

Any help hugely appreciated :-) :-)

grumbler

RMB12 wrote: »

My questions are..

Will i get accepted for one even though i have no means of proving i will have a job in sept?

The only way to know is to ask.
However, generally lenders are unwilling to lend if you say that you income is zero - that it really is.

Will it negatively affect my credit if i get declined?

Rejection isn't recorded. Only a credit search is, that has a minor and short-lasting effect unless repeated several times.

Caladan

RMB12 wrote: »

My questions are..

Will i get accepted for one even though i have no means of proving i will have a job in sept?

Will it negatively affect my credit if i get declined?

I'm with barclays if it makes any difference. I think my credit score should be OK, i've got a phone contract, car finance etc and never defaulted!

Any help hugely appreciated :-) :-)

Firstly, welcome to the MSE forums. Most people are helpful, some are not, and all enjoy arguing over minor details because it makes us feel important.

Question 1: Not necessarily, but not necessarily not. I know this answer is unhelpful but it depends entirely on your own situation, your credit history (not score, that's largely meaningless) and your history with Barclays. You wont know until you apply. Tell the truth, let them run the application and see what happens.

Question 2: Short answer no. Long answer no with a caveat. Being declined will not affect your credit score, but making the application might. Never make several applications in a short period of time (as it suggests you're desperate). Also - As said in Q1, your score is largely meaningless, it's your behaviour that matters.

In your situation, unless you need some other form of credit in the next 3 months or so (which is the usual standard I think) go ahead and apply and see what happens.

However, as your income is not guaranteed, it may not be looked on favourably if it goes to human underwriting (as opposed to electronic yes/no).

Edit:
P.s. No matter how attractive it may seem as a short term solution, DO NOT take out a payday loan. You do not need it, you do not want it, and you do not want to deal with the consequences if things don't work out as you plan.

I know you made no suggestion you would, and from your post you sound sensible, but I felt it should be made clear, for everyone's benefit.

Herbalus

Caladan wrote: »

Firstly, welcome to the MSE forums. Most people are helpful, some are not, and all enjoy arguing over minor details because it makes us feel important.

This has got to be one of the most on point (two) sentences I've read today. Bravo.