A career development loan is taken when one wants to improve one’s job prospects by taking up a vocational course. In the UK, these loans have special status as they are supported by the government which has tied up with various prestigious banks like Barclays. The loan interest applicable to the course period is borne by the government.
For applying for a career development loan, certain conditions have to be fulfilled.
Even if all these conditions are fulfilled, the loan application may be rejected due to poor credit history. After having a look at the applicant’s credit score, the bank will study each of the following items to know his credit history.
The bank will check if the applicant’s credit cards are all within limit or whether they have maxed out.
It will verify the number of loans pending and whether the applicant has been making regular payments. If he has taken a mortgage and has missed out on payments, it would severely affect his chances of getting a career development loan.
The lender will make sure that the applicant has been paying his heating, water and electricity bills on time.
The bank would also confirm whether he has been staying at his current address for more than six years.
It would want the applicant’s name to appear in the electoral register.
Even if the applicant has a high credit score and fulfills all the above conditions, the bank may still deny a career development loan for some specific reason and may not divulge the same to the loan applicant.