BBL and personal loan.

Missmarple

We are self employed and have a Bounce Back Loan. 
Does anyone know if this loan is taken into account if we were to apply for a personal loan or is our excellent credit rating now shot to pieces. 

Thanks 

unholyangel

Missmarple said:

We are self employed and have a Bounce Back Loan. 
Does anyone know if this loan is taken into account if we were to apply for a personal loan or is our excellent credit rating now shot to pieces. 

Thanks 

If you're self employed then the bbl will be in your personal name, so yes it would be taken into account. 

If you were a limited company rather than self employed then the bbl would be on the name of the company

Percy1983

I am self employed with a BBL and it doesn't show on my credit file.

MattMattMattUK

Missmarple said:

We are self employed and have a Bounce Back Loan. 
Does anyone know if this loan is taken into account if we were to apply for a personal loan or is our excellent credit rating now shot to pieces. 

Thanks 

Your credit rating/score is meaningless. Banks will lend based on whether they view you as a viable business proposition, as a sole trader you are personally liable for the BBL, so it will be taken into account with your debt loading and how they evaluate you. However if your earnings were impacted to the point you had to take a BBL and you have now run out of funds from the BBL and so are seeking additional borrowing, it is highly unlikely that your circumstances would merit that lending and any further lending could well be deemed irresponsible. 

Many BBLs are not currently showing for the self employed, I have heard some people say that they will not show until after the year's interest period has passed and the individual is liable to make repayments, but I do not have a definitive source for that. 

Missmarple

Percy1983 said:

I am self employed with a BBL and it doesn't show on my credit file.

Mine isn't showing on my credit file either. I wondered if it would show when the payments started. 

Grumpy_chap

The OP does not say how much they are likely to need to borrow, when, or what for.
The OP does not say what other borrowing and liabilities they have.
The OP does have a BBL, and that required a statement that the business had been adversely affected.  A lender cannot easily assess the extent of that adverse impact.
The OP does not say what their current business status is, whether recovered or not from coronavirus impacts, or limping.
The OP does not say what their income and available funds are to repay the loan (affordability)

All of the above are factors that any lender will take into account in assessing the future loan request, so BBL is a reasonable factor for a lender to consider but does not immediately mean that availability of credit is "shot to pieces" just because of BBL.

The OP could support their own application by considering the above in advance and preparing a "business plan", if you like, setting out the need for the borrowing and ability to repay.  After doing this, the OP may decide they can finance the purchase without a loan, or may self-realise a loan is not realistic, or will be able to present the strong case to a lender / broker.