Need advice regarding a loan

390023

Good evening savers!

I've just been looking into loans, but as I don't really have a particularly good credit score (due to not asking for any rather than not repaying it) i'm struggling to work out what to do.

I'm looking to borrow £5000 for 18-24 months. Is there anything I can do to improve my situation and chances? I'm a full time uni student working at the same time. I've worked out I can pay upto £350 a month fairly comfortably. I'm happy to take more interest on if it helps my chances as in the long run (hopefully I have a good long innings!) my credit score will be important!

Sorry I wasn't able to add an image of my credit score so will write it here. I had a look onto clear score and I have the score of 253. Positive no court or insolvencies. Nothing in default or repossession and I've made very few applications for credit.

Negative i'm not on the electoral register (registered recently, just not upto date.) Also I do not have a credit card.

Thanks for your time guys!

:money:

Pixie5740

Are you comfortably saving £350 each month at the moment?

How much do you earn with your job?

No your credit score is not important. They're numbers made up by the credit reference agencies designed to get suckers to buy products to improve their scores. No lender uses them. Lenders use your credit history and other data to determine whether or not to lend to you and at what rate.

390023

I've only recently been earning this amount so have only just started putting some away.

£1200 a month in my pocket, TSB quoted £250 a month for 24 months which I would be more than happy with.

Cheers for the speedy reply as well!

DCFC79

Have you just started in the job ?

390023

Yes, second pay due end of the month.

Primrose82

Presumably for £1200 a month you are working full time, how are you managing a full time uni course as well ?
Could you save for whatever you need the £5000 for ? At £350 a month it wouldn't take that long

390023

I'm working with a freelance photographer as well as taking on commissions myself so the work is flexible and doable around my course.

I need to start building a credit score eventually so this seems like a good alternative to saving.

DCFC79

390023 wrote: »

I'm working with a freelance photographer as well as taking on commissions myself so the work is flexible and doable around my course.

I need to start building a credit score eventually so this seems like a good alternative to saving.

A credit score that is only seen by yourself.

My credit history was built up over time, just by keeping my account in the positive and making sure credit card was paid on time, my score at the time wasn't important as it was the history lenders saw.

DCFC79

390023 wrote: »

Yes, second pay due end of the month.

Bit risky taking on a loan when you might not even get enough jobs to cover the loan repayment.

Was it a firm offer of £250 from TSB, if so take it but not a good idea if all you want to do is improve your score.

Pixie5740

No you don't need to start building a credit score as I've already explained. It's your credit history that's important. Lenders are looking for patterns on how you handle debt so if you want to start building up your credit history then get a credit card and make the repayments on time. Much cheaper than a loan.

As for the loan itself you might struggle since your income comes from self employment. I know that when I was contracting some lenders just gave an outright no because I wasn't also a homeowner (employed tenants were ok though). Some lenders would consider me if I could provide a letter from my accountant after I'd filed some accounts but you've only been trading for a couple of months.

ViolaLass

Are you saying you want to get this loan just to 'build you credit score'?

Silly idea, if so. You'll be paying interest when all you need to do is get a credit card, buy your groceries on it and pay it off in full every month. That way, you build credit history while paying no interest.