Getting a loan for a Masters Degree

Hi everyone,

I am hoping to get a bank loan to help towards the payment of Post Graduate Certificate and Masters Degree. I’ve calculated that I would need to borrow £10,000 across 5 years.

I am wondering if I need to improve my credit score to increase my chances of receiving this. I know getting a credit card could help with this. I’m currently in my overdraft so I’m not sure if this effects my eligibility for a credit card?

I’m thinking it is my priority to pay off my overdraft fees (possibly with a credit card), build my credit score and apply for the loan Autumn 2022.

Does anyone have any experience of doing so or have any ideas that could help me out?

Many thanks all!

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    edited 31 December 2021 at 2:44PM
    Ignore the credit score. It's not a factor in lending.

    Definitely get out of the OD - but not via credit card - and build some decent history through card usage, as well as the usual ER etc.  Check your three files to see what appears on each 

    Your income during the study period will be an important factor. You're also looking at a long payback period for a modest sum, which is a high risk indicator.
  • DrEskimo
    DrEskimo Posts: 2,343 Forumite
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    Can you not apply for a postgraduate loan?

    https://www.gov.uk/masters-loan

    The issue with a personal loan is you will need to repay straight away. Will you have an income to service the debt whilst studying?
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
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    As DrEskimo says above, can't you apply for a postgraduate loan?

    Do you work? My daughter got a loan last year to do a part time Masters. She works part time and had a small bank overdraft and a credit card balance still to pay off at the time. She wasn't sure she would be accepted for a loan but she was and you could be too. 

    There is also this info - https://www.gov.uk/funding-for-postgraduate-study

    It appears that you'll have to wait until they open applications for 2022-2023 but getting a PG loan is much better - and could be easier - than getting a bank loan. 

    You can also apply before you have been offered a place.

    By the way, your credit score cannot be seen by lenders. They can only see your credit history. As per the following links -

    https://www.moneysavingexpert.com/loans/credit-rating-credit-score/

    https://www.moneysavingexpert.com/loans/build-credit-history/

    Good luck! 
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
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