Bad Credit - Guarantor Loan??

nknash

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Hi,

I have a bad credit rating from a few years back and am a tenant so I am finding it impossible to get a personal loan. I was wondering if anyone knew whether I can get a loan if my parents were to guarantor this and what companies would entertain this idea?

Thanks, Nat

Rafter

Nat,

Suggest you go and talk to one of the big banks, or your parents bank?

Could they not just take out the loan for you and you set up a standing order to make payments into their account?

R.

nknash

I think they would feel a bit better about doing it for me if the loan was in my name and coming out of my account, I think I might be pushing my luck with them if I ask them to get the loan out for me..

Thanks for your advice, I will have a word with my Bank and see what they say.

jonesMUFCforever

Big banks do not do 'secured' or 'guaranteed ' PERSONAL loans. It is trying to fit a square peg into a round hole as you have found.
You may find a specialist lender who may lend you some money but expect to pay dearly for the privelege.
Only my opinion but if you are at an age when you qualify for your own borowing don't involve your parents who would have to pick up the mess if you defaulted. Have they not done enough for you already in life?

Rafter

ejones999

Barclays certainly do. My mother in law has an overdraft and loan in her name which is guaranteed by my partner so that a) she got the loan and b) does not have to pay an extortionate rate of interest.

R.

jonesMUFCforever

Rafter wrote:

ejones999

Barclays certainly do. My mother in law has an overdraft and loan in her name which is guaranteed by my partner so that a) she got the loan and b) does not have to pay an extortionate rate of interest.

R.

I stand corrected then. Perhaps the OP should be directed towards Barclays although what I said about standing on your own two feet and not relying on parents guarantee stands in my book.

Rusco

Had a look at that website, "Our typical loan rate is 42.6% APR." omg! :eek:

mbob

try http://www.flmloans.co.uk

edsteruk

nknash wrote: »

Hi,

I have a bad credit rating from a few years back and am a tenant so I am finding it impossible to get a personal loan. I was wondering if anyone knew whether I can get a loan if my parents were to guarantor this and what companies would entertain this idea?

Thanks, Nat

I believe that your parents acting as a guarantor doesn't make much difference to how the loan is operated - should you default they would chase your parents instead of you and I also believe it would show up on there credit history as well - so it's as good as them taking it out themselves and you just setting up the direct debit on your account.

You also risk making a financial link between you and your parents - which could impact there abilty to get credit espescially if you already have a low credit score.

Edit: Didn't read the date of the OP - oops!

miet

Hi, i know this is an old thread bit i wonder anyone could offer some advice...

Im in a similar situation as mentioned above. My mother is willing to get a loan for me in her name but as she is self employed is worried that if she needs to get a loan in the near future she will have reached her 'limit' against the amount her business makes. She has perfect credit and owns some property outright but her business doesn't earn her a great deal.

How would one unsecured loan effect her opportunity of getting a further loan in the future?

We both bank with Barclays so asking them may be an option, although I've asked in passing and was told they didn't do guaranteed loans.

Thanks in anticipation, Craig.

jonesMUFCforever

Your mother could raise money against the property she owns, get a business loan or a personal loan.

All 3 types of loans will have different eligibility terms.

In original thread I did say that banks do not offer 'Guarantee' loans - somebody said that they did. It is not a common occurrence these days unless you have some 'pull' with the bank ie rich.