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Need bank loan but will if affect Universal credits?

Soconfused14
Posts: 101 Forumite

Need to get a bank loan for £5000 to cover some needed home improvement.
Obviously this amount will be in my bank account temporarily so will if affect my universal credits as will have over £6000 in cash/savings for a short while between getting the loan and paying it out?
Obviously this amount will be in my bank account temporarily so will if affect my universal credits as will have over £6000 in cash/savings for a short while between getting the loan and paying it out?
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Comments
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Probably best talking to a credit union they will consider it. Apart from that most banks will be difficult to deal with unless it's on a credit card. You could also apply for a budgeting loan via UC0
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Local councils will also do certain grants for improvements depending on your circumstances.0
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I think before you think of taking on debt whilst in receipt of UC, and by the way are you sure you will get a loan at a reasonable rate of interest?
You need to go across to the Debt Free Wannabe board and bare your soul with the good people on there to see what your financial position is.If you go down to the woods today you better not go alone.1 -
Thanks for replies. I am in no debt at the moment and can get a bank loan . What I need to know is how will having that money in my bank for a short time til I pay for home improvement, affect my universal credit. Do I have to declare it as will take me over £6000 in my bank for that time1
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For UC purposes what counts is your circumstances on the last day of your assessment period. If the money goes into your bank and out before the last day then you will be fine.1
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Grumpelstiltskin said:I think before you think of taking on debt whilst in receipt of UC, and by the way are you sure you will get a loan at a reasonable rate of interest?
You need to go across to the Debt Free Wannabe board and bare your soul with the good people on there to see what your financial position is.
This might be the only debt he has and it might be manageable.2 -
@andrewmp. Yes this will be my only debt. I usually save up but not got enough to do what needs doing right now. Will be overpaying with the money I have managed to save up so goes quickly .0
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Soconfused14 said:@andrewmp. Yes this will be my only debt. I usually save up but not got enough to do what needs doing right now. Will be overpaying with the money I have managed to save up so goes quickly .Proud to have dealt with our debtsStarting debt 2005 £65.7K.
Current debt ZERO.DEBT FREE1 -
The problem with a smaller loan is the interest rate is much higher, like 12% instead of 6%. The savings were earmarked for this home improvement anyway so I plan to pay my savings off the loan asap, saving me interest and using the money for what I intended.1
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Soconfused14 said:The problem with a smaller loan is the interest rate is much higher, like 12% instead of 6%. The savings were earmarked for this home improvement anyway so I plan to pay my savings off the loan asap, saving me interest and using the money for what I intended.
£3000 at 12% over 3 yrs is £3555.58 -payments £98
£5000 at 6% over 3 yrs is £5463 -payments £151Proud to have dealt with our debtsStarting debt 2005 £65.7K.
Current debt ZERO.DEBT FREE0
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