For Career Development Loans, past credit score is key
July 21, 2007 by admin
Filed under News, News-Mortgages
Good or bad credit in the past provides a “good indication” of future credit prospects, according to the Co-operative Bank.
In an interview about Career Development Loans – a bank loan designed to help pay for vocational learning – spokesperson Andy Hammerton said that if an applicant for the loan had “a very, very poor credit history” then the bank “wouldn’t accept them just because it’s a career development loan, they still have to be credit scored. We have to be a responsible lender.”
Mr Hammerton also said that just because an applicant was taking a course – which might be said to make higher future earnings more likely – does not mean that they will not be a credit risk.
“Just because they’re taking a course doesn’t necessarily mean they’re going to be a sound credit risk in the future. They need to have a reasonable credit record.”
Career Development Loans, which offer anything from £300 to £8,000 to fund learning for up to two years, are currently offered by Barclays, the Co-operative Bank and the Royal Bank of Scotland.
