New to the UK - loan eligibility

Sydney2London

Hi all,

Roughly 5 months ago, I moved to the UK from abroad. I am not a UK citizen and hold only my Australian passport along with the appropriate right to work permits in the UK.

I'm interested in obtaining a loan for some potential small investments over here, for roughly £8,000-10,000.

I was wondering if any people 'in the know' or from past experience (particularly anyone obtaining such credit as a non-resident so to speak) would be able to enlighten me if it was going to be possible in another couple of months to apply for a loan of that size?

Some approximate information on myself:

- full time employed (professional);
- Club Lloyds account holder (approx 4 months);
- Aqua and Capital One card holder, (1 month and less than 1 month), only a few hundred pound limits on each and clearing both as soon as statements are released;
- recently been added to the electoral roll, however this is not currently shown on CRA's (I have been told I will be added on Feb 1 by the local electorate);
- my credit history is as above noted and there are no other credit searches/applications that have been carried out. Credit agencies have scored me as 'poor' (equifax) and 'fair' (experian). There is no negative information on there from a missed payment or anything of the like.

If I simple continue to repay the credit cards as they are due, how long before a lender would deem me to be a suitable risk? If I am eligible for a credit card (sub-prime lenders, I know) then credit in the form of a loan off a reputable lender might not be out of the question in the near future?

Any feedback will be great, thanks!
:beer:

Candyapple

If you have only been here for 5 months, you have no chance of getting a loan for that amount.

How long do you plan on being in the UK for?

Maybe after 6 months employment you could try at your bank, they will be your best bet given they will have a history of how you run your account.

Credit cards and loans are two different kettles of fish. Just because you get approved for one, does not mean you will be likely to get the other.

It's worth remembering as well that all the best rates you see for loans are for those who have a long excellent credit history so even at 6 months if your bank approves you for a loan, chances are you will be offered one at a much higher APR.

SeanG79

Generally speaking, loans require 3 years traceability on credit searches. Your own bank will be the only option, unless you have a 3rd party guarantor who is a UK home-owner to provide guarantee and then rates will be high.

HappyMJ

Sydney2London wrote: »

Hi all,

Roughly 5 months ago, I moved to the UK from abroad. I am not a UK citizen and hold only my Australian passport along with the appropriate right to work permits in the UK.

I'm interested in obtaining a loan for some potential small investments over here, for roughly £8,000-10,000.

I was wondering if any people 'in the know' or from past experience (particularly anyone obtaining such credit as a non-resident so to speak) would be able to enlighten me if it was going to be possible in another couple of months to apply for a loan of that size?

Some approximate information on myself:

- full time employed (professional);
- Club Lloyds account holder (approx 4 months);
- Aqua and Capital One card holder, (1 month and less than 1 month), only a few hundred pound limits on each and clearing both as soon as statements are released;
- recently been added to the electoral roll, however this is not currently shown on CRA's (I have been told I will be added on Feb 1 by the local electorate);
- my credit history is as above noted and there are no other credit searches/applications that have been carried out. Credit agencies have scored me as 'poor' (equifax) and 'fair' (experian). There is no negative information on there from a missed payment or anything of the like.

If I simple continue to repay the credit cards as they are due, how long before a lender would deem me to be a suitable risk? If I am eligible for a credit card (sub-prime lenders, I know) then credit in the form of a loan off a reputable lender might not be out of the question in the near future?

Any feedback will be great, thanks!
:beer:

It takes a little while to build a decent credit history. It is possible but you really need to save as much as you possibly can. Lender's also don't like lending for potential investments. They like to lend on things that have a monetary value such as houses and cars that can be sold to repay the debt. I would keep trying to build your credit by applying for credit cards. Eventually you'll get one with a decent limit.

chriskv

You can't get a loan if you've only been in the UK for 5 months . Give it 2 years.

poppasmurf_bewdley

If I were in a position to give you a loan, my first impression now would be that "here's a chap who's setting up a lot of credit and could very well spend it all and do a bunk, leaving us high and dry".

You will need at least a two year residence before applying for a loan to stand a chance of getting on.

idkwhattosay

That's not true.

After being only 2 months in the UK with zero credit history I got loan of £1000 approved instantly online. Next year (after being only 12months in the country with no credit history apart from that grand I borrowed) I got another loan of £8000 approved instantly online. My bank is HSBC. It's not true what people say, you _can_ get a loan.

dealer_wins

OP if you mean business investments, then you need to apply for a business loan with supporting accounts etc.

If you mean, stocks/share type investments, then these should be funded from savings not borrowing.