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Loan after sick pay?

Hi everyone,

My actual question is does having reduced pay for a while affect your chances of getting a loan?

The back story is that my husband had a largish amount of debt from before we got together which we have almost completely paid off (bad advice from parents etc, better advice from me!) we was very close to being completely paid off when we have just had a shocker of a year. My husband took ill in August and short version is he has just had a life changing operation that went wrong and has had multiple hospital trips. He has been on SSP until that ran out then on to ESA for about 6 weeks before returning to work this month. During that time we managed shockingly well, on barely any money only needing to add to our credit cards minimally. That was until february when my dad passed away suddenly. Emergencies being what they were we've now had to run up the cards a bit (not a ridiculous amount, but still more than I'd like). In a normal situation we would have got a small loan but I wasn't sure how that would work with him being on the sick and the credit cards were there and immediate (I was not in a good headspace at all). However to top it all off, we now find ourself in need of a new car. This isn't optional, we need the car to survive. We're under pressure from his family (bad advice family) to get a car on finance (no desire to do this what so ever.) or on a lease thingy (not my preference either as we are locked into a certain amount every month with dead money). I'd prefer to buy a car outright.

Ideally we'd like to get a loan to cover a new car with a slight consolidation on the cards. The issues that found us in the original situation have been addressed so I'm not at all concerned about consolidating (I've expensive read the forums in an effort to find an answer to my question). We've found a couple of loans that seem acceptable to us and give us the option of early/over payment which I would do to have it gone ASAP and be debt free.

I just don't quite understand how the system works and therefore if my husband having been on the sick for 9 months will affect our chances of being accepted. I seem to be getting mixed information so I thought I'd just out and ask if anyone knows the answer. I don't want to apply and be rejected on that basis and will have to try to think of something else if that's likely to be the case.

Sorry for the long post and thanks in advance.

Comments

  • Candyapple
    Candyapple Posts: 3,384 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Has your husband returned to full-time employment / same salary he was on before?

    Is this going to be a joint loan or just in his name?

    What was the total loan amount that you were looking to take out?

    What is your husband's credit history like? What is yours like?

    The free versions to check your credit files are below:
    Experian: https://www.moneysavingexpert.com/creditclub
    Call Credit: https://www.noddle.co.uk
    Equifax: https://www.clearscore.com

    Do you both have any late payments / defaults / CCJs?

    Are you both on the electoral roll (does it show on all 3 files?)

    Please list all credit card limits along with outstanding balances. In your name and also any in your husband's name.

    Do you work? What is your annual salary?

    What is your husband's annual salary?

    Have either of you made any recent applications for credit elsewhere?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
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