Tesco Bank Loan Agreement

Joe88T

Hello All,

I was wondering If anyone has recently applied for a Tesco Loan:

I have just been accepted in principle and have to sign the documentation and send 1 months bank statement.

What would the reason behind one month of bank statements be?
I have moved address in the last year so would it just be for proof of address?
Have i passed all credit checks to be approved in principle?

Many Thanks
TJ

burlington6

Affordability?

Joe88T

Ahh ok, i would of thought they would request more than one month statement for that, do you think?

burlington6

Who knows. Every company will have different criteria and rules.

Joe88T

I mean the purpose of the Loan is debt consolidation and I Put my current loan and monthly payment on the application and credit card amount and amount available to spend on them.

The loan would reduce my month cost by just over £150, I suppose a little worried one months bank statement will not tell the true story but we shall see.

Thank you for your help

burlington6

Another problem you might have is they won't see it as a loan to pay another off.

They will treat it as additional debt. They can't trust you to pay the old ones off

dano17439

I got a Tesco loan recently. Didn't ask for any type of proof of income. Like others have said, every application is different. Don't take it personally

Joe88T

Thanks for the replies!

They asked on the application what it was for on which i stated debt consolidation. SO hopefully they will see it would be paying off a current loan and credit cards.

iolanthe07

SO hopefully they will see it would be paying off a current loan and credit cards.

Hopefully that will be the case. However, some lenders add the new loan to your existing debt as they have no means of ensuring that you use the new debt to consolidate. For all they know you might blow the lot on a Caribbean holiday, (it has happened!). It might be as well to have a Plan B.

Joe88T

Thank for the advice, yeah i think you are correct, I wonder if it would be wise to enclose a detailed plan of use for the money enclosed when sending the documentation and forms back (as they are sending the contract out, i just need to return it with a bank statement).

what would you guys advise regarding that?

jellie

Joe88T wrote: »

Thank for the advice, yeah i think you are correct, I wonder if it would be wise to enclose a detailed plan of use for the money enclosed when sending the documentation and forms back (as they are sending the contract out, i just need to return it with a bank statement).

what would you guys advise regarding that?

That still wouldn't mean that you will actually use it to pay off your existing debts and even if you did, they'll have no guarantee you won't rack up debt on your credit cards again.