Personal Loan Questions&Advice Needed.

zayrus25

Hello there guys. This will be my first thread on this site and i am shiny brand new in this domain, at barely 21 years old, so id like to ask some leeway and understanding/helpful advice against salty criticism coming from more of the experienced/elitist people here.

With that out of the way simply put i have a bunch of questions, and after i watched, a ton, and i mean a ton of youtube finance channels relating to credit & borrowing i have a basic grasp of understanding regarding the domain, but there are still a bunch of questions i am unable to find on the internet so i made an account here for it.

I basicly want to make a personal loan with the purpose of advancing my status. I want to use part of the sum to be able to move cities and find a new place to stay in ( Right now i live in london, uk, and i wish to move to birmingham.) Use another part to fund my driving license expenses , and use it to be able to find a decent job without being pressured of needing to accept a poor condition workplace due to the upcoming bills, and also to have an emergency fund. (I know my reasons may not be the most smart, or well funded, but i seek advice in my problem, no commets that will try to change my reasons, say its bad and such, because weve all different situations that i wont get into.)

With no education on the matter i simply thought i would be able to borrow however much i wanted whenever i decided because put it simply i never had any bad influencers, judgements, missed payments and such, and i only used my debit card. Oh boy was i wrong and i had so much to learn, that seemingly no credit history was much worse than bad one. Regardless i informed myself.


Ive started building my score in the last year and following all the good things i couldve, i know to stay in my 30% ish limit, im on the electorall roll and ive never missed a payment. I dont have a lot of time though. On experian the site advertises i should hit "fair"credit score in the upcoming 3 months, and as i make plans of moving out i wanted to find out about what loan i would be able to take out and expect.
I make a sad 17500 per year and i am an agency worker.
Ive lived here a little over 1.5 years but i think on my adress it figures ive over 3 years, hence i couldnt get even my credit score without 3 years, and adding a location from my previous country is irrelevant.

My questions are
1. What bank/rate should i seek and would get with a fair score in the uk with how much apr.
2.What sum would i likely be accepted to? I recently seen a comment stating 50% of your yearly earnings is the maximum amount youre able to borrow, regardless if you ask it for 4-5 or 7 years even. Is that true?.
3. Ive been with this employer for more than 1 year, but yet again it is an agency, the income is steady since, but how important is actually being contracted to a company is? One friend told me ive no chance to get a personal loan if im working as an agency worker because i can be sacked anytime and lose my income which may be considered a risk. I could get into a company on a contract if needed, and how much would i need to go with them in order to be accepted on a loan? Any information on this subject is welcome.
Knowing all of this what is the verdict? Would i be able to borrow anything with a fair score and my statuses? Please be kind and thank you for reading this!

boo_star

If you really only have 1 1/2 years residency you're stuffed.

Is that correct?

zayrus25

It is correct, but when i registred for my electorall roll i selected 3 years i think and it went trough, im not really sure how this goes aswell. Last time i asked at the bank and the person there told me i should just choose 3 years as the option when i want to apply for a loan.. I dont really know, but yeah i should have just around a little bit more of 1 year taxable and trackable income. Even so besides the other endless list of credit score income reliability and such 3 years of living here aswell just for a loan ill pay back seems.. i dont know. Is it really a requirement.?

boo_star

zayrus25 wrote: »

It is correct, but when i registred for my electorall roll i selected 3 years i think and it went trough, im not really sure how this goes aswell. Last time i asked at the bank and the person there told me i should just choose 3 years as the option when i want to apply for a loan.. I dont really know, but yeah i should have just around a little bit more of 1 year taxable and trackable income. Even so besides the other endless list of credit score income reliability and such 3 years of living here aswell just for a loan ill pay back seems.. i dont know. Is it really a requirement.?

How long you can trace your income back is largely irrelevant, have you lived in the country for 3 years (with traceable address history) or not?

Sncjw

Have you got a job I’m Birmingham. If not how will you pay the loan off as it will start kicking in about a month later for the first payment.

Ebe_Scrooge

zayrus25 wrote: »

It is correct, but when i registred for my electorall roll i selected 3 years i think and it went trough, im not really sure how this goes aswell. Last time i asked at the bank and the person there told me i should just choose 3 years

So you were advised to lie on a loan application form - really ? This is a really bad idea - if you get found out, you'll find your chances of getting further credit will drop even lower than they are at the moment.

To answer you question about amounts - yes, a maximum of 50% of your income is a generally-accepted rule of thumb. There are many other factors that are taken into account, but 50% maximum is a good working baseline.

Address history is a major factor for many (most ?) lenders. With less than 3 years, you're unlikely to be offered decent deals - if at all.

From everything you've described, I really think a loan is not the best way forward. The best advice would be to save up for a few months, then make your life changes. If you can't afford to be putting away a decent chunk every month at the moment, how do you plan on making the loan repayments ?

DCFC79

Disregard your credit score/rating, no 1 can see it except you, what matters is the credit history which is what lenders see.

Whats wrong with £17500 a year ?

So if you were to get the loan, you quit your job and move to Birmingham. How would you make the monthly payments with no job ?

Whay cant you look for jobs in Birmingham now and move once 1 is secured ?

A loan isnt what you need, save up what you require.

zayrus25

Nobody bothered to answer my third question, and as i said in there i have a job in there ready that would be with contract, but i wanted to know the relevance of working with a contract vs as an agency worker and how it influences the loan decision. Yes i have a job ready and im able to meet the repayments, thank you for the concern.

zayrus25

boo_star wrote: »

How long you can trace your income back is largely irrelevant, have you lived in the country for 3 years (with traceable address history) or not?

Thats the thing which im unsure of, i lived in uk for 1and a half years, but the adress itself that im at, which every single legal document, is in itself way older than 3 years. But i doubt that really counts like that doesent it?

KatrinaWaves

zayrus25 wrote: »

Thats the thing which im unsure of, i lived in uk for 1and a half years, but the adress itself that im at, which every single legal document, is in itself way older than 3 years. But i doubt that really counts like that doesent it?

Of course that doesnt count, unless I'm counted as living in this country for over 100 years...

AndyPix

OP I think you should give up this balmy idea.


You don't get a loan as an emergency fund, that's just crazy !!
Concentrate on increasing your income, and save up for what you want