Part time workers getting accepted for loans?

Benc98 · 24 May 2019 at 10:14PM

I am looking and have applied for a loan, the loan will be used to pay off some very minor personal life debts (nothing bank related) and also to pay for a new computer for my course. I've specified everything to my bank, with no lies what so ever and been straight foward with them, saying that I'd have absoulutly no problem paying the loan off within an 18 month contract. The loan is only a £1000 loan so not to much. This equates to me paying £60 a month which is completely fine with with me and id have absolutely no problem paying that off.

So essentially I am a full time student let's call it (its not full time as I only do 3 days a week, but by law it's full time) for the rest of the days I work 4 days a week. I specified to my bank that I am a student, but when I called them, I told them about my job aswell and they where fine about it and understood.

From my job I can earn anywhere from 400-750 a month depending on my hours worked I am paid weekly also. However, I have no other commitments with my money, such as direct debits and such coming out of my account. But I do spend all my money every week (through choice, because I like to go out with friends as much as I can) as all of the transactions are done through cash withdrawls, or bank transfers to friends, when I've sent my bank the bank statements will this go against me? Or will they take into consideration the circumstances of which the money is spent?

My bank is first direct just incase that matters at all, they've been absoulutely amazing with me, but I don't think it's for them to decide once they ask for my bank statements whether or not I get the loan, it's down to the lenders? I might be wrong in saying that.

Thanks to anyone that can just put my mind at ease if they know how this situation would look to lenders.

AndyCF · 24 May 2019 at 11:05PM

I'm interested in this too in a way, so I'll watch your thread.

I've always (assumed) the lenders are really more interested in what you have coming in and what you can afford to repay rather than if you work 8 hours a week or 48 hours a week. Put it another way, if you only worked 8hrs/week but were paid £75/ph... Hopefully that makes fractional sense.

Askalaba · 24 May 2019 at 11:22PM

I've never applied for a loan but I do plan to soon. I'm going to watch this thread and see if anything comes out of it

Candyapple · 25 May 2019 at 8:33AM

Rather than applying for a £1k loan with FD where the APR would be 18.9%, it makes more sense to apply for an overdraft where the first £250 is interest free and the remaining £750 would be at 15.9%.

Benc98 · 25 May 2019 at 2:57PM

Thankyou for the reply!

Would the fact that I'm in my Halifax overdraft not affect me from getting an overdraft? Because with Halifax I couldn't get more overdraft because of the amount of overdraft I was in (well I think so anyway I can't see what else would effect it, maybe my income? But I definitely don't have bad a credit score, I checked and also I have no previous debt problems with banking)

System · 25 May 2019 at 8:19PM

If you've already used your overdraft and they won't extend further ten that's not an option.

Credit scores are meaningless numbers. What will affect you though is your current level of debt compared to your income meaning you may fail affordability tests. It is that that matters rather than whether you're full time or part time.

meer53 · 25 May 2019 at 9:58PM

Benc98 wrote: »

Thankyou for the reply!

Would the fact that I'm in my Halifax overdraft not affect me from getting an overdraft? Because with Halifax I couldn't get more overdraft because of the amount of overdraft I was in (well I think so anyway I can't see what else would effect it, maybe my income? But I definitely don't have bad a credit score, I checked and also I have no previous debt problems with banking)

Your Halifax overdraft may stop you getting a loan. Depends on how big the overdraft is.

Benc98 · 26 May 2019 at 1:17PM

I'm about £200 into my overdraft I did specify to first direct that the loan would be used as a means to paying them off before I officially switched.

sourcrates · 20 July 2019 at 1:36PM

Benc98 wrote: »

I am looking and have applied for a loan, the loan will be used to pay off some very minor personal life debts (nothing bank related) and also to pay for a new computer for my course. I've specified everything to my bank,

My bank is first direct just incase that matters at all, they've been absoulutely amazing with me, but I don't think it's for them to decide once they ask for my bank statements whether or not I get the loan, it's down to the lenders? I might be wrong in saying that.

Thanks to anyone that can just put my mind at ease if they know how this situation would look to lenders.

First Direct is the bank you have applied too for a loan then is it ?

Nearly all banks are whats called, "direct lenders" which means all loans etc are decided and funded "inhouse".

It is the underwriters at the bank who decide weather to lend to you, or not.
First Direct are pretty good at listening to peoples circumstances to be honest, it will depend if the loan is affordable, and what your credit file sayes about you.

DCFC79 · 20 July 2019 at 1:39PM

sourcrates wrote: »

First Direct is the bank you have applied too for a loan then is it ?

Nearly all banks are whats called, "direct lenders" which means all loans etc are decided and funded "inhouse".

It is the underwriters at the bank who decide weather to lend to you, or not.
First Direct are pretty good at listening to peoples circumstances to be honest, it will depend if the loan is affordable, and what your credit file sayes about you.

You may have noticed it but Ben started the thread back in June, don't think he's coming back.

Part time workers getting accepted for loans?

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