Loan before First Pay Cheque

ViolaLass

Try your new employer for a salary advance.

Clive_Woody

swoophoop wrote: »

Hi,

I'm starting a new job September first with a salary of £26k, rising to £28k after 3 month probation. I need to relocate and I was looking to secure a graduate loan to cover the costs, (deposit, first two months rent, agency fees). I also have some existing debt on credit cards ~£3k, so was looking to take a £6k loan to consolidate the existing debt and cover the relocation fees. When I looked to apply for my bank (HSBC) I was unable to set my employment on my profile as I couldn't set a future date.

I'm worried the bank will look at my current income and decide I can't afford the loan, whereas once I start my job I will be able to afford it comfortably. Various budget calculators work out I will have £200-300 spare each month, including repayments.

All advice is appreciated!

As has been suggested I think your chances may be slim of getting a loan based on a salary starting in the future.

If I were you I would be visiting my local branch to discuss the idea of an overdraft to cover those initial expenses (not the credit card debt). They might consider an overdraft on a short term basis but you need to keep this request as low as possible and be disciplined about paying it off.

Lungboy

Presumably as they are applying for a graduate loan they have a graduate account, which has an interest free overdraft built in I think.

Caladan

I wouldn't even apply. Plenty of people get a job, fail probation and then have to spend time finding another one. Good luck servicing a loan if that happens to you (and yes, it could happen to you). This is what the bank will be thinking about when you apply.

I'm afraid you probably wont succeed if you applied based on your current income either, I think minimum for an HSBC personal loan is £10k salary.

Add in a £3k credit card balance and you're just too high risk. Could you find the money from friends/family in the short term?

Good luck in the job, I hope it works out.

Meka3256

As suggested - have you tried asking your new work for a salary advance? I work in HR and this would not be an unusual request.

Do they know you are relocating? Do they have a relocation policy as they may pay some of your costs?