Banks, credit and debt

Q: I am thinking about getting a bank loan. Can you recommend one?

A: We always encourage students to keep borrowing to a minimum. However this is not always possible. If a loan is essential 'Professional Development Loans', which are offered by a few banks, are suitable for medics as you do not have to start paying them off until you graduate.

See www.money4medstudents.org/content.asp?id=73

In order to find the best deal on a loan, start by asking your own bank what they can offer you and then try a few other high street banks to see if you can get a better deal.

You can use our loan calculator to work out how much you will end up paying back in total at the interest rate you are quoted.

www.money4medstudents.org/moneydoctor.asp?id=224

Q: I applied for a loan but was rejected due to poor credit. What can I do?

A: Different banks have different ways of scoring credit ratings so just because one turns you down does not mean others necessarily will. However, applying for credit and then getting turned down further damages your credit rating. So if you can, avoid applying to lots of banks and work on improving your credit rating first. You can do this by making sure you are on the electoral roll, having direct debits for mobile phone contracts and using credit cards then paying them off each month.

There are two main credit referencing agencies. You can check your credit files online for free by going onto their websites and signing up for a year with a free 30 day trial and then cancelling before the end of the 30 days. Or you can buy a copy for £2.

www.equifax.co.uk
www.experian.co.uk

Although some companies offer loans specifically for those with poor credit ratings, they use this as a chance to charge incredibly high interest and are best avoided.

Q: What loans can I get as an international student?

A: There are no loans that you will automatically be able to obtain in the UK.

If you need a loan you could try:
- High street banks in the UK - you may find one willing to give you a loan or student overdraft, but unfortunately most are reluctant to lend to overseas students.
- Banks in your home country - these may be easier to obtain a loan from.
- Your home government - they may have loan schemes for University students studying overseas.

Q: I am in a lot of debt and this is causing me to feel under a lot of pressure. Is there anything I can do?

A: See our section on dealing with debts.

www.money4medstudents.org/content.asp?id=125

If debts are becoming a problem speak to someone about it. Contact an advisor at your Student Finance Office, Student Support Office or Student Union. Alternatively email our Independent Money Advisor.