Career Development Loan Applications Still Credit Checked

Britons looking to take out a loan for the purpose ofgovernment website, with the Royal Bank of Scotland
career development will find themselves judged in the(RBS) and Barclays also providing these specialist
same way as applying for a personal loan at a bank, acredit options. Such loans range anywhere from
spokesperson for the Co-operative Bank has said.£300 to £8,000 and cover a maximum of
Career development loans can be used to help peoplethree years of learning.
acquire new job skills, training, qualifications orAlso highlighted by Mr Hammerton was that a career
experience integral to them getting a new job or evendevelopment loan was not the route to take for
launching a new career, according to the Directgovconsumers looking for the cheapest loans on the
website, yet Andy Hammerton from Co-operativemarket, with personal loans providing a much more
Bank has ruled out any suspicion that it is easier to getlikely route to cheap credit for British borrowers. He
a career development loan than a personal loan whensaid that due to the personal loans sector being "a
it comes down to the matter of credit history.very competitive market at the moment", there were
"If they [an applicant] had a very, very poor credit"cheaper" loans available than the career
history then we wouldn't accept them just because it'sdevelopment-specific ones.
a career development loan, they still have to be creditHowever, if competition is the driving force behind loan
scored. We have to be a responsible lender," Mrcosts, it is unlikely that the cost of career development
Hammerton said. "A credit score in the past is usually aloans is going to fall in the near future. As the
good indication of what's going to happen in the future,spokesperson noted, there are only three "players" in
so if somebody's been a poor credit risk previously,the market, with RBS, Barclays and the Co-operative
just because they're taking a course doesn'tBank having not been joined by any newer entrants.
necessarily mean they're going to be a sound credit"There's nowhere near the competition that you see in
risk in the future. They need to have a reasonablethe [personal] loan market," Mr Hammerton added,
credit record."although he did suggest that loans could be found "for
The Co-operative Bank is just one of the lenderssix per cent, seven per cent" if you were looking to
offering career development loans, according to thepay the loan back quickly.