What to say when looking for a loan?

Dirk_Diggler

What's the answer the banks want to hear? I'm currently working, have about 1k left on a loan to repay (never missed a repayment over the last 2 years), have very little in my account, no savings, going travelling for a few weeks later in the year and I'd like to get a loan of around 5k - chances?

Thanks.

axer

Dirk_Diggler wrote: »

What's the answer the banks want to hear? I'm currently working, have about 1k left on a loan to repay (never missed a repayment over the last 2 years), have very little in my account, no savings, going travelling for a few weeks later in the year and I'd like to get a loan of around 5k - chances?

Thanks.

The truth?

How and when do you intend paying it back?

Dirk_Diggler

I'll be working until Christmas, maybe into January. After that I'm not so sure.

Intend on paying it back 3 months after I get it (pretty sure that's an option I have).

axer

Dirk_Diggler wrote: »

Intend on paying it back 3 months after I get it (pretty sure that's an option I have).

Well if you can show them that you can afford to pay it back without problems that quickly and if you have a good account history then they will have no problems giving it to you. They will look at your income of course.

Dirk_Diggler

Sorry I meant that I'll defer payments for 3 months and then start repaying it (I presume over a period of about 2 years). I've had money coming into my account for over a year now and that will continue until Christmas for sure. However, I don't have any savings and by looking at my account one would think that I am pretty useless with money. How will they look at this?

axer

Dirk_Diggler wrote: »

Sorry I meant that I'll defer payments for 3 months and then start repaying it (I presume over a period of about 2 years). I've had money coming into my account for over a year now and that will continue until Christmas for sure. However, I don't have any savings and by looking at my account one would think that I am pretty useless with money. How will they look at this?

If you have a steady income when you apply then I cannot see them having a problem giving the loan. If it is a case of you not having a job after christmas then it is up to you to decide whether you want to tell them that. I believe they like steady earners e.g. salaries paid direct into the bank account.

Dirk_Diggler

Yes it's been paid into my account every month for over a year at this stage. I'm not 100% on the whole not having a job after Christmas but I'm pretty sure. Then again, I'll be looking for a new job so it shouldn't really be a factor should it?

axer

Dirk_Diggler wrote: »

Yes it's been paid into my account every month for over a year at this stage. I'm not 100% on the whole not having a job after Christmas but I'm pretty sure. Then again, I'll be looking for a new job so it shouldn't really be a factor should it?

I'd say leave as you have a job now and that is all you know since you do not know whether or not you will have a job after christmas i.e. no point telling them that since you don't know. I'm sure if they did know you won't have a job after christmas then they might hesitate.

Dirk_Diggler

Cheers for the advice, thanks!

Dirk_Diggler

Oh and how bad an idea is it to use the money from this loan to pay off my credit card (currently maxed out for the last few months, have been making min repayments on it).

daithimac

I would think your chances are slim. it depends on where you are going and how long you are going for but i would think that there would be few sanctions for loans where people are looking to leave the country straight away. I would inform them first that you are looking to defer payments first before taking out the loan as your request may well be denied and you will still have to meet repayments.

as for paying off your credit card debt. I would think that to be a bad idea. if you need a loan to pay that off then going traveling may be a bad idea.

Dirk_Diggler

Chances are slim? Hmm. I've got a steady income for the past year, never missed a repayment on my current loan (2 years paying), is that not all in my favour?

daithimac

it would be if you where staying in the country. you say the first thing you will be looking for will be a 3 month deferment as your going travelling. that may harm your application and it is something that you will need to state clearly as there is no point looking for it once the loan is drawn down. also you state that you have a steady income. your just not sure that you will have a job after christmas. ???? what area are you working in.
Also the title of this thread is worrying. The best thing to say is the truth, there is no point in telling a bank what they want to hear. be truthful!

Random

In my experience give them the truth but don't give anything extra unless you feel it helps your case.

Dirk_Diggler

What's wrong with deferring it for 3 months? Why would they not like that?

Dirk_Diggler

Guys, quick question, how serious is it to say you're a permanent employee when you're actually a contractor? I've been approved the loan but was caught on the hop when they asked me this question and I just said 'Yes'. What happens now?