New job: Can I get a loan?
Tuesday, 10 February 2009 06:09
A reader from Surrey has started a new job. But he wants to know how long he must wait before he can apply for a personal loan.
Jo Crosse, Halifax and Bank of Scotland personal loans expert, tackles the problem.
Josh from Surrey asks:
Can you apply for a loan even if you are on a probationary period in new employment?
Jo replies
This is a difficult question to answer as every lender has different lending criteria.
Lenders require you to have a form of income in order to make your repayments, therefore you can apply, however, I could not say whether or not you will get accepted.
Every application and the circumstances surrounding the application are different.
Some useful tips when applying for a loan are:
. Spend plenty of time researching before making an application because each time you apply for a loan your credit history is checked and this can in turn lower your credit score.
. Gather together the offers from each lender and compare the loans using the APR (annual percentage rate), length of repayment, monthly repayment and the total amount repayable.
. Make sure you understand all the associated costs, charges and terms and conditions of the loan agreements.
. Read the small print carefully when arranging your loan and check for penalties for late or missed payments or for early repayment of the loan. By paying your loan off early you will save money on the interest you would have paid but there may be a penalty charge.
If you have a question for Jo, go to the myfinances.co.uk Ask the Loans Expert section
Or for more information on your loans options go to personal loans at Halifax
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