Have loan will new credit card affect my chances of another loan this summer

tony672

Ok well I did think the national average was a bit more than £20,000. I would say that my income is in the higher 20's. In any case I am getting the feeling that getting a credit card won't really increase my chances of getting a loan but might decrease them possibly. Its just that you always hear that having credit cards or loans increases your chance of getting credit as long as you don't miss payments, rather than not having any credit. So I am getting the feeling that the loan I have, that I have always paid on time and that I have an excellent credit rating, is enough to show these credit companies I am a safe bet.

dealer_wins

£20000, Thats a lot of money and interest to borrow from your future income!!!

tony672

Well yes it would be if it was for buying a car or something but it will be used to make money, so it is more of a business venture. I think that I have realised that getting a credit card will be of little use to my chances of getting a loan. I don't need one, I just wondered if it would be useful or might make me seem like a better bet for lenders.

downhillfast

tony672 wrote: »

but it will be used to make money, so it is more of a business venture.

You won't get a personal loan for this without comitting fraud (ie lying about what the loan is for)

tony672

Oh ok I was looking at the loan finder on this site and just entered 'other' in the options. Right well thats no good then. Thanks though.

John_G_Jones

tony672 wrote: »

I would say it is above the national average. Not hugely mind you.

I think you may well struggle. You are heading down the road of needing to take on more debt when you have not yet finished with the previous loan, it paints a picture of someone whose financial situation is heading in the wrong direction.

It’s only a rough rule of thumb but lenders seem to get uncomfortable if you want more than half your gross annual pay in debt, which it oooks like you do.

Is it possible to buy what you need at a lower price, or at least save up for more of it?

John_G_Jones

tony672 wrote: »

Well yes it would be if it was for buying a car or something but it will be used to make money, so it is more of a business venture. I think that I have realised that getting a credit card will be of little use to my chances of getting a loan. I don't need one, I just wondered if it would be useful or might make me seem like a better bet for lenders.

I’d have commented more. Banks will want to see your business plan, and that you are putting at least as much into this prospect as you are asking them to.

What data do you have to show the period over which you will become profitable enough to pay back what you owe, and how do you plan to service the debt in the interim?