The Student Room Group

Unemployed, No Credit History: Can I Get a Loan? (Personal Loan, Not Student Loan)

Just a quick question. I'm 20 years old, currently unemployed (seeking work) and have no credit history, i.e. I've never had a credit card. I'm four months into a student account at Lloyds TSB this is the first time I've borrowed from anywhere. I'm ineligible for a loan through Student Finance. Could I get a loan of about £2000 through any other source? Not related to my studies, but solely a personal loan. Is there any reputable organisation that would offer such a service?
Reply 1
You'll find it pretty much impossible without a steady, regular income source.
No. You need a job at minimum and some sort of credit history for a loan of that size.
Reply 3
Unlikely and if someone does offer you a loan, run away.
Reply 4
You'll be bankrupt within a year, you need a job to repay a loan at normal rates. Let alone the kind of rates they'll offer you.

Whats the reason for the loan and are you actively seeking work?
Reply 5
In order to get a loan, you need to as good as prove you don't need it.
Reply 6
Original post by PatrickHumphreys
Just a quick question. I'm 20 years old, currently unemployed (seeking work) and have no credit history, i.e. I've never had a credit card. I'm four months into a student account at Lloyds TSB this is the first time I've borrowed from anywhere. I'm ineligible for a loan through Student Finance. Could I get a loan of about £2000 through any other source? Not related to my studies, but solely a personal loan. Is there any reputable organisation that would offer such a service?

Do banks let people that don't have a credit history have a co-signatory that generally has a credit history on the loan in the UK? if they do then it may be an option to ask your parents to co-sign with you.

They will be responsible for the loan to, so you better pay the monthly payments :wink:
Reply 7
How do you intend to meet your financial obligations if you have no income?
I woke up one day and realised that I didn't have to go to school.
I was really pleased. Then I remembered I was forty years old and unemployed.
Reply 9
Original post by PatrickHumphreys
Just a quick question. I'm 20 years old, currently unemployed (seeking work) and have no credit history, i.e. I've never had a credit card. I'm four months into a student account at Lloyds TSB this is the first time I've borrowed from anywhere. I'm ineligible for a loan through Student Finance. Could I get a loan of about £2000 through any other source? Not related to my studies, but solely a personal loan. Is there any reputable organisation that would offer such a service?


I'll happily lend you £2,000; although you may find that the rate of interest causes your testicles to spontaneously retract into your abdomen.
Original post by fosters88
Firstly you need a job that provides a monthly income; so unemployed is an instant no.
Secondly, to get a good Credit Rating; get a Credit Card and just use it to purchase certain items e.g. petrol, CD's, mobile phone contract thus it is easier to monitor etc.

Soon a credit rating will built up.
Once it is proved you have good Credit Rating; my advice is cut the Credit Card up.

I'm afriad your stuck between a rock and a hard place until you get a job you cannot spend money and therefore it is impossible to get a credit rating and thus impossible to get a loan.


The irony is that these days you need a credit card to earn a good credit history but the vast majority of highstreet providers require a good credit history before they will give you a credit card.
Original post by PatrickHumphreys
Just a quick question. I'm 20 years old, currently unemployed (seeking work) and have no credit history, i.e. I've never had a credit card. I'm four months into a student account at Lloyds TSB this is the first time I've borrowed from anywhere. I'm ineligible for a loan through Student Finance. Could I get a loan of about £2000 through any other source? Not related to my studies, but solely a personal loan. Is there any reputable organisation that would offer such a service?


there is a way to get money but it should be the last resort. there are a few payday loan companies which you could easily complete there applications online, but there interest is high and if you miss repaying in time they will hit you hard.
Cheers, fellas.
No. You may be able to get an overdraft on your student account though, e.g. the Natwest student/graduate account offers a £2,000 interest-free overdraft. It's best not to get into debt, if you don't have to, though.
Are you a student? If so overdraft on your student account is the best option as it's usually interest free.

You won't get a loan, and if you did it'd be a really bad idea - how do you expect to repay it?

Some credit cards will offer you X months at 0% interest when you join them. For example, I recently signed up with Nationwide to get a credit card with a limit of nearly £3k, and for the first 6 months I only have to pay off £25 per month and no interest builds on anything I've spent. Now this is perfect for me - I got it in mid-November whilst unemployed and desperately needing money, but knowing I had a well paid job come January. I've built up about £1k on it so far, and will need to continue to use it until I get paid at the end of January, but I am 100% confident I will pay all of that off before the 6 months is up. The bank only let me have it because I could prove I had a job lined up though. So you may have to go to not such a good provider who lends to high risk people such as yourself, and you may find they don't do such a good deal.

Another option is an overdraft on your normal account - a very good idea if you've got direct debits coming out as the interest you'll pay is nothing compared to the charges if you miss payments on DDs.

DO NOT GET A PAYDAY LOAN. You don't have a payday, and will not be able to pay the money back when expected. Interest rates are horrendous on these (over 1000% APR - so if you borrow £2000 you'll end up owing £20,000 - yes, twenty thousand pounds - after 1 year). They are supposed to tide you over to the end of the month, and are NOT SUITABLE FOR SOMEONE IN YOUR POSITION!!
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I can't help but wonder why you'd want to take out a £2000 loan when you have no income.
Original post by Chumbaniya
I can't help but wonder why you'd want to take out a £2000 loan when you have no income.


question answers itself (although I do know what you mean)
Original post by chai wallah
question answers itself (although I do know what you mean)


I can understand needing to get hold of money to live on. But £2000 is much more than just that. Aside from housing costs (in which case the OP should be pursuing housing benefit instead) why would a person with no income want to spend so much money? That's a year of food if you're sensible.

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