Taking a loan when you really need it is a good idea, as long as you can pay it all back in the period stated. This is where having a good credit score helps and you could see how well you’d do with a loan by checking your credit score and your overall history of payments. Sitting down with an accountant or a credit counsellor will also answer a lot of questions and it is actually advisable. But if you are wondering exactly which loan you can take advantage of, here are some options:
If you want to buy a car, then the requirements are pretty simple: You need to be over 21 years of age, and a permanent UK resident. You need to have a bank or building society account with a Direct Debt facility, and your annual income needs to be about 6,000 pounds. Supposedly, a driver’s license would be a nice document to present as well.
The requirements to get a loan for home improvement are pretty much the same as the car purchase loan, minus the driver’s license. What’s more, you do not need to pay anything upfront, and the monthly repayment can be spread over 12 months to 60 months.
To ease up your debts, you again need to be over 21, living in the UK, and with an income of 6,000 pounds. Also, you get to choose the date of your repayments, but you also need to be frequent and you need to do them whenever you state you will.
This is the type of loan whose reason you do not need to state upfront, but you still need to choose the repayment dates and stick to them. Same requirements apply, and you need to have not been declared bankrupt or have had a debt within the last 6 years.
Consider the type of loan you want. The basic requirements are all the same – 21 years, UK citizen, no debts, and minimal average income. If you fit, then you will most likely be viable for a loan, but do make sure you can do the repayments on time, otherwise the entire loan will have been in vain.