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    • tstan
    • By tstan 21st Apr 17, 12:45 PM
    • 3Posts
    • 0Thanks
    tstan
    Getting a personal loan with an overdraft?
    • #1
    • 21st Apr 17, 12:45 PM
    Getting a personal loan with an overdraft? 21st Apr 17 at 12:45 PM
    Hi guys,
    First post here after years of lurking through the depths. I currently have just quit my job that was extremely low paid (800p/m) and now have a new job much better paid. Because of the low paid job i often dipped into my overdraft, and now have an overdraft of 1000. New salary will be about 1250 after tax so sorry for the confusion of saying nearly double my previous...

    Now i have started my new job with much better salary i will have a lot more money to be able to repay the overdraft bit by bit every month. Now i need a new car and am going to apply for a loan of 7000. Obviously me having an overdraft and then another bank lending me 7000 doesn't look great, but now in my current financial circumstances i will realistically be able to afford paying back the loan in the monthly rates i have been quoted, as well as paying the overdraft back bit by bit.

    Now the question is, will they actually lend me the 7000 loan in the first place, because my feeling is they will see that I'm in my overdraft and automatically assume that I can't live beyond my means, which admittedly was true in my old job but now with this new one that is not the case anymore. I guess really this is for advice more than anything. And also FYI I'm only 20 so have plenty of years ahead to pay things back (if that makes any difference whatsoever!?) Thanks for any help given

    Also FYI, I'm currently living at home paying low rent to parents with no other debts, loans or anything else other than my overdraft. I think im on the electoral roll and also have never applied for anything like a loan before other than overdraft increases. All outgoings for 1 month would be rent 140, travel to work 230, phone 50 and potentially the car and insurance if the loan gets accepted at 250 a month. So all outgoings are 670 p/m
    Last edited by tstan; 21-04-2017 at 1:09 PM.
Page 1
    • StopIt
    • By StopIt 21st Apr 17, 12:56 PM
    • 1,395 Posts
    • 1,249 Thanks
    StopIt
    • #2
    • 21st Apr 17, 12:56 PM
    • #2
    • 21st Apr 17, 12:56 PM
    If you've doubled your salary, why can't you pay the 700 in one go? Where does the other 800 a month go?


    Sort the overdraft, then go for a loan.
    • tstan
    • By tstan 21st Apr 17, 1:07 PM
    • 3 Posts
    • 0 Thanks
    tstan
    • #3
    • 21st Apr 17, 1:07 PM
    • #3
    • 21st Apr 17, 1:07 PM
    thanks for the reply, but I have no idea why 700 was there i think i got confused with the loan and what not - my overdraft is actually 1000 (edited in op). Sorting out the overdraft would take months at least and i can't afford to wait months for my car.
    • PeacefulWaters
    • By PeacefulWaters 21st Apr 17, 1:07 PM
    • 8,211 Posts
    • 10,463 Thanks
    PeacefulWaters
    • #4
    • 21st Apr 17, 1:07 PM
    • #4
    • 21st Apr 17, 1:07 PM
    Pay the overdraft off. Doable in three months.

    Save up for 18 months with your extra 450.

    Buy the car for cash.

    If you feel you do want a loan then being under 21 isn't ideal. Being in a job less than six months is also not good. As such expect declines or higher rates.
    • bargainbetty
    • By bargainbetty 21st Apr 17, 1:10 PM
    • 3,103 Posts
    • 7,148 Thanks
    bargainbetty
    • #5
    • 21st Apr 17, 1:10 PM
    • #5
    • 21st Apr 17, 1:10 PM
    Bear in mind that some banks will not lend to people who have recently changed jobs (probation periods etc) so you may well be better off paying the overdraft off over the next two-three months and then applying for a loan.

    Just as a side note, do you really need a 7k car now? At your age, you may find the insurance is cripplingly high on an outright purchase. Having 'years to pay things back' really doesn't make it sensible to over-burden yourself with high debts for things you really don't need to pay that much for.

    Best of luck
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!
    MFW - Joined May 2012, aiming to cut the mortgage by an extra two months every year. (Overpaid 3000 so far)
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    • Gambler101
    • By Gambler101 21st Apr 17, 2:59 PM
    • 528 Posts
    • 1,294 Thanks
    Gambler101
    • #6
    • 21st Apr 17, 2:59 PM
    • #6
    • 21st Apr 17, 2:59 PM
    Agree with the poster that said save up for the car.

    Motoring is expensive enough without adding interest on top too.

    And if you do save up 7000, you will think twice before handing it all over for a expensive car and may opt sensibly for a cheaper car!!
    The instructions on the box said 'Requires Windows 7 or better'. So I installed LINUX
    • DCFC79
    • By DCFC79 21st Apr 17, 3:03 PM
    • 31,430 Posts
    • 19,845 Thanks
    DCFC79
    • #7
    • 21st Apr 17, 3:03 PM
    • #7
    • 21st Apr 17, 3:03 PM
    Save up for it.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Tarambor
    • By Tarambor 21st Apr 17, 4:46 PM
    • 2,671 Posts
    • 1,918 Thanks
    Tarambor
    • #8
    • 21st Apr 17, 4:46 PM
    • #8
    • 21st Apr 17, 4:46 PM
    Now i need a new car and am going to apply for a loan of 7000.
    Originally posted by tstan
    You don't need a new car, you'd like one. Nobody NEEDS to spend 7,000 on a car, they do so because they want to. You can get one that is perfectly usable with a MOT for 1000 or less which will do until you've cleared your overdraft and got some money in the bank.
    • dresdendave
    • By dresdendave 21st Apr 17, 6:17 PM
    • 730 Posts
    • 896 Thanks
    dresdendave
    • #9
    • 21st Apr 17, 6:17 PM
    • #9
    • 21st Apr 17, 6:17 PM
    Hi guys,
    First post here after years of lurking through the depths. I currently have just quit my job that was extremely low paid (800p/m) and now have a new job much better paid. Because of the low paid job i often dipped into my overdraft, and now have an overdraft of 1000.

    All outgoings for 1 month would be rent 140, travel to work 230, phone 50 and potentially the car and insurance if the loan gets accepted at 250 a month. So all outgoings are 670 p/m
    Originally posted by tstan


    Your outgoings are 140 rent, a ridiculously high 50 for a phone and 230 travel, a total of 420. Even on 800 per month you had no reason to go overdrawn.


    Learn to live within your means and your future self will be forever grateful.
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