Can I get a loan without income from a job?

Danleo171

Hi I am an 18 year old student in Cork and i'm hoping to take out a loan in order to pay for my first car, the loan amount would be 1700 or around that and i would be hoping to repay this over 24 months.
I don't currently have a job though I do have guaranteed work for 12 weeks over summer, my only current income is from the SUSI grant and i'm wondering if it is likely that a bank or credit union would be likely to grant this loan to me and if anyone here can offer anymore advice that may help me
Thanks
-Dan

Danleo171

I should add that i'm not paying rent or any other expenses other than what i spend on food and personal spending

Speedwell

You would likely need to provide collateral and/or a co-signer. You'd probably be asked to demonstrate what, if any, money you have been getting and its source, using bank statements over the past several months, and what evidence you have it will continue. If you have savings equal to or greater than the loan you are seeking, that may also help, but those savings may be frozen until the loan is paid back. I am not, honestly, optimistic. You might be better off (and it might be a lot quicker, too) finding a way to earn the money in your spare time.

fits

You could earn that amount in the run up to and over Christmas if you put your mind to it.

Danleo171

I am hoping to find a job in the mean time but its very difficult to match it with my college timetable, even then though, I would be applying for a loan so as not take a huge chunk of money away from me at once. I would also be paying for insurance monthly and the total costs of everything I've calculated has shown me that I can afford it but the problem is if a bank or credit union would take the same opinion or not

Avatar MIA

Ask a bank under Talk to...

You'll need a guarantor. It might also depend on what you are studying. IT is good, Ancient Irish not so good.

Zillah

Speedwell wrote: »

If you have savings equal to or greater than the loan you are seeking, that may also help, but those savings may be frozen until the loan is paid back.

I have never understood why anyone would ever do this. Surely it is better to spend the savings than take a loan that would incur interest?

Danleo171

Its safer to spread out the payment into smaller sums over a longer period of time at least for me anyway and the interest is affordable

eeguy

Zillah wrote: »

I have never understood why anyone would ever do this. Surely it is better to spend the savings than take a loan that would incur interest?

It's nice to keep some ready cash in the account in case of emergencies. The interest isn't that much over 2 years and you can always make additional payments if you've a bit extra.

Speedwell

Zillah wrote: »

I have never understood why anyone would ever do this. Surely it is better to spend the savings than take a loan that would incur interest?

It depends. I'm from the US, where having an especially pristine credit rating is particularly desirable, so I took out a signature loan against savings in my credit union specifically to show a clear payback record. I don't use credit cards; I can't stand the damn things. I did buy inexpensive cars for cash. I had three months' salary in the bank for emergencies, so I decided that paying a small amount of interest to build a credit rating with money I had anyway was worth it.

Sue Pa Key Pa

OP have you budgeted for fuel, tax, insurance & maintenance?

Danleo171

Yes ive taken that all into account and I should still be able to afford it

lawred2

Danleo171 wrote: »

Hi I am an 18 year old student in Cork and i'm hoping to take out a loan in order to pay for my first car, the loan amount would be 1700 or around that and i would be hoping to repay this over 24 months.
I don't currently have a job though I do have guaranteed work for 12 weeks over summer, my only current income is from the SUSI grant and i'm wondering if it is likely that a bank or credit union would be likely to grant this loan to me and if anyone here can offer anymore advice that may help me
Thanks
-Dan

Rather unlikely I'd say

Do you have a credit union account with a history of savings?

lawred2

Danleo171 wrote: »

I am hoping to find a job in the mean time but its very difficult to match it with my college timetable, even then though, I would be applying for a loan so as not take a huge chunk of money away from me at once. I would also be paying for insurance monthly and the total costs of everything I've calculated has shown me that I can afford it but the problem is if a bank or credit union would take the same opinion or not

If you can't save that money - how are you expecting to repay a loan..

Is a car/tax/insurance/fuel costs etc really the best use of your grant money?

Danleo171

I already have savings of about half what i would want from the loan, I would be hoping to get a loan anyway even if I do manage to get a job, I would be able to pay for all of this out of the grant money either way, considering how much it costs me to travel home and how much easier it will be to get a job if i have transport then yes I think this is the best use for that money

Danleo171

Would a credit union be unlikely to grant it if i simply joined as a member and put my savings in and applied for the loan after?

Squall Leonhart

How much have you budgeted in for insurance? At 18, you're most likely looking at 2,500+ for the year in insurance alone.

Danleo171

yup about 2800 is what AXA are quoting me

lawred2

Danleo171 wrote: »

yup about 2800 is what AXA are quoting me

ouch

there's no way that it works out dearer to use public transport

Danleo171

well about 35 to 40 quid a week but its not just about if it works out cheaper, I will end up getting a car anyway even if I don't get a loan as it will make everything a lot easier for me and i'm simply trying to fast track that as it makes the most sense

Speedwell

lawred2 wrote: »

ouch

there's no way that it works out dearer to use public transport

Jesus, if only.

My husband is taking a course in Donegal, and the bus costs more than 30 euro round trip each day. Fortunately the course is not every day of the week or all year, but if it was a normal full-time schedule, and assuming he traveled every day of that schedule, it would cost around twice per year what the OP is being quoted for insurance.

Incidentally the place where he's studying is really only an hour or so away. When I lived in Houston, you could ride the bus from one side of the city to the other, an hour or more, for about a euro each way. I don't know why bus fare costs so much here when people are trying to be all ecological and stuff.