Address to use for loan

MC414

Hi there,

I'm in a bit of a conundrum as I am moving and have decided to get a loan to cover furnishings and also to consolidate my current debt.

I'm on top of my cards and have a good credit score so all should be good but the issue is I moved from NI to London 6 months ago but as I knew this would only be a temporary flat share until I found proper accommodation I never updated the address on any of my correspondence so all I have here is my tenancy agreement, my bank, phone, credit cards, savings are all still linked to my parents address.

If I put down my London address will that harm me from a credit search perspective as I've nothing linked here? Likewise if I use my correspondence address but my London billings would that be an issue?

MorningcoffeeIV

Ignore the pretend score. With existing debt and a need to consolidate, plus needing to borrow further for basics, you're not doing well credit wise in the eyes of lenders.

Get your address updated. Then apply with accurate data. 

But better to break your borrowing cycle.

Ebe_Scrooge

First things first, where are you moving to - rented accommodation or are you buying a property?  If you're buying somewhere, you don't want to be taking out a loan just before a mortgage application.

Secondly, consolidation loans are very rarely a good idea, and can be difficult to obtain (any lender has to assume the new debt is in addition to your existing debt, not instead of it).

Thirdly, do you really need a loan for furnishings, or can you get hold of stuff from Freecycle, free stuff on Facebook, or charity shops to tide you over?

At what address are you registered on the ER?  That is often a key factor used by lenders.

MC414

MorningcoffeeIV said:

Ignore the pretend score. With existing debt and a need to consolidate, plus needing to borrow further for basics, you're not doing well credit wise in the eyes of lenders.

Get your address updated. Then apply with accurate data. 

But better to break your borrowing cycle.

The consolidation isn't really needed, my debt is a small part of my disposable income as was higher a year ago but transferred so now mostly (bar my card I use groceries paid monthly) on 0% until the summer, I would just prefer one bill if I could get a decent rate which the few pre-approvals I have are but unsure about following up if my address gets me in trouble. I could afford furnishings but moving a few weeks before my current lease end so waiting on my deposit and while I can cover my deposit and rent with my current account balance I'm unsure of a new bedroom and would preferably leave my LISA alone but it's always an option

Will defo update my address as should have been done when I moved

I completely agree with the last post, spent my first couple of years out of uni living on cards so now I just want to get them paid off in one swoop and close down but might be easier to dip into savings.

Ebe_Scrooge said:

First things first, where are you moving to - rented accommodation or are you buying a property?  If you're buying somewhere, you don't want to be taking out a loan just before a mortgage application.

Secondly, consolidation loans are very rarely a good idea, and can be difficult to obtain (any lender has to assume the new debt is in addition to your existing debt, not instead of it).

Thirdly, do you really need a loan for furnishings, or can you get hold of stuff from Freecycle, free stuff on Facebook, or charity shops to tide you over?

At what address are you registered on the ER?  That is often a key factor used by lenders.

Rented accommodation for the time being, I will probably be quite some time buying as I plan to do 5-10 years in London then move back home and can't see me ever buying over here
Most of the places I've liked the look off both flat wise and location are unfurnished so would need a new bedroom, as I'm moving before my current lease ends won't have my deposit and most of my savings are in a LISA so don't want to withdraw if necessary
ER is registered back in NI

macman

The address to use is obviously where you are residing, and where you currently pay council tax etc. 
When you move, you need to inform your creditors accordingly.

MalMonroe

Hi, I hope you're enjoying London, that's quite a big move really, I think, from NI to London - and bit of a culture shock, I would imagine.

As you've said you don't really need a loan and you also have some savings, you really don't need to apply for one. Pay off debt with savings, then you can just start saving again. It's what I did when I (finally!) wised up about how to manage my finances (I've been in terrible debt in the past, had a DRO, struggled, etc., you don't want to know).

You do need to update all your details, though, even if you move somewhere on a temporary basis, that's always a good move, glad to see that you're on it now.

Just a reminder of what this site says about loans (under 'Banking and Borrowing - loans', left hand side) - 

"Remember MSE's stance on loans: 'borrow as little as possible, repay as quickly as possible'."

There's also that old saying 'patience is a virtue . . . ' etc., you're expecting your deposit to be returned as well. Just hang on a bit longer, and you won't need any loan. For me, now, a loan is a big no-no. They seem to hang around forever, even if you manage to bag a 0% interest one. 

Enjoy your stay in London, you may find you never want to leave. 

Brie

Rather than a loan why not look for a 0% for purchases card?  Use it for just the furniture purchases and pay the minimum for now and dump as much on any other card that's charging interest.