Personal loan application

MrsSippi

I wonder if anyone could offer some thoughts on this...

We are currently clearing a credit card debt and should have it done in a couple of months. Once this is done we would like to apply for a 10k personal loan with a view to converting our garage into a bedroom. I have been looking on price comparison websites and we could easily afford the repayments but my worry is that my other half is the only one working and although he isn't on a bad wage it isn't massive either. What sort of thing would a loan company take into consideration when approving us for a loan? Our credit ratings are both excellent.

[Deleted User]

They will look at your credit history, income, other debts and affordability, amongst other things.

The on thing they will not look at is your credit rating as given by a CRA.

bengalknights

They will use a average debt position to come to a decision as to whether to lend or not

poppasmurf_bewdley

MrsSippi wrote: »

I wonder if anyone could offer some thoughts on this...

We are currently clearing a credit card debt and should have it done in a couple of months. Once this is done we would like to apply for a 10k personal loan with a view to converting our garage into a bedroom. I have been looking on price comparison websites and we could easily afford the repayments but my worry is that my other half is the only one working and although he isn't on a bad wage it isn't massive either. What sort of thing would a loan company take into consideration when approving us for a loan? Our credit ratings are both excellent.

It's always interesting to ask someone who says they can easily afford the repayments exactly how much they have in savings and how much do they save each month/week?

So that's what I'm asking the OP before making any other comment.

MrsSippi

poppasmurf_bewdley wrote: »

It's always interesting to ask someone who says they can easily afford the repayments exactly how much they have in savings and how much do they save each month/week?

So that's what I'm asking the OP before making any other comment.

Thanks for all the replies. In response to the above, we currently have 6 months savings (by which I mean enough to cover 6 months worth of bills) and we save around £600-700 pm. When looking at the loan we would hope to pay around £250 pm to be able to continue saving rather than putting all on loan repayments. We would overpay a bit every couple of months to get the balance down quicker.

Clive_Woody

MrsSippi wrote: »

Thanks for all the replies. In response to the above, we currently have 6 months savings (by which I mean enough to cover 6 months worth of bills) and we save around £600-700 pm. When looking at the loan we would hope to pay around £250 pm to be able to continue saving rather than putting all on loan repayments. We would overpay a bit every couple of months to get the balance down quicker.

Sounds good, but one other thing to consider is that you may not get the headline rate (APR), so be prepared, that even if you are accepted, the rate you are offered may be higher and therefore monthly repayments higher too. Over paying is a great idea not only to be debt free sooner but to save on interest paid :money: