career development loans and bad credit records

[Chintito]

Ive read that banks will consider CDL applications individually even if you do have a not so tidy credit record. i strongly suspect my application might not be looked at because of this. what id like to know from anyone who has experience of this is what exactly constitutes 'bad' in their eyes taht is sufficient enough for rejection.
also if banks are likely to be flexible with an offer of say security in the form of a property attached to the CDL. Im relucant to go the normal secured loan route purely because im not in a position to start immediate repayments.

anyone know of any other packages other than CDL's where there is a defered repayment arrangement?

thanks

[George Tower]

Hi there

I'm currently trying get the funds to complete my fATPL from HSBC as they seem to be the most clued up of the major banks when it comes to aviation. Their literature claims their professional stidies loan can be used to cover the cost of an entire course and payment only commence 6 months after all training is completed - interest is HSBC Base Rate +2%.

If successful in my application I will post on here. Im after about £20K as I have already done a PPL and have 200 hours. Like you I'm not in a position where I have a great credit rating due to a few problems a small business of mine had a few years back.

Good luck

PS I thought CDLs only had a limit of £8K - hardly enough to get you through an ATPL?

[tomcs]

I was successful from HSBC....i'm only 19 and just out of school and they gave me £25k. The loan is called a Professional Studies loan not a CDL which is a government thing i think. I went in there looking professional ( suit and tie!! ) and told them exactly what i was going to do with their money ( i had made up a dossier with information on all the licences and timescale/feasability studies ). They secured my loan on my increased earning capacity at the end of the course.

I haven't taken any of it yet...i'm just coming to the end of the ATPLs.


Cheers

Tom

[McCroskey]

Chintito,
I'm not fully up to speed with todays CDL's as I got mine about 6 years ago but from my experience a bank will consider people with poor credit history and they should not require any security or garentor for the loan, this is due to how a CDL works.
With a CDL the bank it self is not lending you the money but the government, the government has no means of directly lending money to people so has to employ the services of a high street bank (profitable for the bank, thats why they do it). So the government loans the money to the bank then the bank loans the money to you on their behalf so in affect the bank is nothing more than a go between for you and the government.
This means that banks are alot more flexible because they are not taking the risk and also it is the government who acts as the garentor on the loan, so from the banks point of view they cant lose because even if you take the money and do a runner it is the governments money not theirs.
This also means you can default on the loan without incurring penalties financially or with your credit rating, this is what happened to me, I could'nt find work flying and could'nt keep up the repayments therefore I defaulted on the loan, the bank was'nt bothered and just froze the loan which meant no more interest was inquired and I was able to pay off at a rate of my choosing. The bank said it dosent affect my credit rating as the CDL contract was with the government and they dont hold records of peoples financial history, in future it may affect my dealings with that particular bank but no other bank as they dont know about the CDL.
This means that you do stand a chance to get a CDL even with a poor credit history, from my experience my advice would be to try all the banks which offer CDL (their response to me differed alot) and when you've picked a bank try different branches ( I found different manages at different branches varied alot, some really froaned at me others were very helpfull and supportive and they all worked for the same bank.)
Hope this helps and good luck.