Guarantor advice?

HarleyQuinn13

Just a quick query regarding guarantors.

I'm looking at taking out a small loan of £2,00-£3,000. This is for personal reasons such as paying off my overdraft to close my graduate account, and starting up a wedding fund; I am not in debt.

I have a fair/poor credit history as I was a little irresponsible as a student and had some trouble recently with pay day loans that has now been rectified. I have had no trouble finding a loan, and a number of well known, respectable companies are willing to help me with a loan of this amount, but they all ask for a guarantor.

I have no problem in asking someone to be my guarantor, I can afford the repayments and am not embarrassed to ask. The problem is that I can't find anyone! :undecided

I'm just wondering who can actually act as a guarantor? My parents and close family are not home owners, nor are any of my friends. Does anyone have any ideas of who I can turn to next? Any help/advice would be greatly appreciated!

CLAPTON

normally only family are daft enough to become guarantors... because if you default then they will have to pay

so it would make better sense to ask some-one in your family to get the loan in their own name (probabkly with a lower APR) and then they just trust you to give them the money each month to repay the loan

HarleyQuinn13

My fiance had a loan with Lloyds TSB and has almost paid it back in full with no complications. Lloyds have been sending him information on credit cards or applying for another loan as he has a good credit history with them; would it be wise/easier to ask him to apply for a loan, and me to set up a direct debit into his account to cover the costs of the monthly repayments?

CLAPTON

why won't they give you a loan?
it's always best to save up for what you want?

but if you need a loan and they won't give you one (why?) then asking your bf is a possibility
however I would have to question why has your bf got a loan, why do you need a loan; why are you unable to save?

MFWannabe

Surely it's not a good idea to start a wedding fund with part of a loan? Do you really want to start married life in debt?
Why don't you save and hack away at clearing your overdraft; perhaps when your fiancee has paid of his loan he can start saving aswell towards your wedding; why not open a joint savings account for this?

HarleyQuinn13

My fianc! got a loan to pay off his student fees. And it's not that I am unable to save; I had my hours cut at my job.

Companies are willing to give me a loan provided I have a guarantor. As I already explained, my bank won't give me one at this moment in time because of my past with payday loans (which my fianc! gave me money to help with and has now been solved), and until I have started to pay back some of my overdraft. But my income isn't going to change, so repaying the overdraft will be happening slowly.

The loan isn't vital; I'm not desperate or in debt, it'd just help a little.
I just wanted to know who can act as a guarantor besides family?

CLAPTON

HarleyQuinn13 wrote: »

My fianc! got a loan to pay off his student fees. And it's not that I am unable to save; I had my hours cut at my job.

Companies are willing to give me a loan provided I have a guarantor. As I already explained, my bank won't give me one at this moment in time because of my past with payday loans (which my fianc! gave me money to help with and has now been solved), and until I have started to pay back some of my overdraft. But my income isn't going to change, so repaying the overdraft will be happening slowly.

The loan isn't vital; I'm not desperate or in debt, it'd just help a little.
I just wanted to know who can act as a guarantor besides family?

you haven't understood me
anyone can act an guarantor who has an sufficiently good income and credit rating to satisfy the bank

however, most normal sensible people would refuse as they may have to pay the debt in full if you default.
family and maybe bfs are an exception
and as I've already said in this case it's probably better for them to get the loan as they will get a lower APR and you simply pay them monthly

HarleyQuinn13

FREEZ wrote: »

Why don't you save and hack away at clearing your overdraft; perhaps when your fiancee has paid of his loan he can start saving aswell towards your wedding; why not open a joint savings account for this?

It's going to take a while for me to clear my overdraft, but it's not impossible. As I say, I got into a bit of a mess a few months back when I got my hours reduced at my job, but now I'm getting everything back on track. We've looked into opening a joint account, definitely something we're interested in doing and setting aside a set amount per month to go into it, maybe set up a direct debit into the savings account to assure the money wont be spent elsewhere.

It's not that we can't save, it's just that we've both been stupid with money in the past, especially as students. We hold our hands up to that and are trying to make amends. The loan is something I'm looking into, it's not like I have my heart set on getting one, and perhaps it's not the best option. I just wanted a little advice

HarleyQuinn13

CLAPTON wrote: »

you haven't understood me
anyone can act an guarantor who has an sufficiently good income and credit rating to satisfy the bank

Apologies.
The landlord of the house I rent is a friend and also a work colleague. Could I ask her to be the guarantor? She knows exactly how much I earn, and as I have been renting her property for almost a year and a half she knows I have never missed a rent payment.
Again, I don't even know if I am going to apply for the loan. I'm not sure if it's the right decision to make, I'm just gathering advice in case I do decide to get one. Although right now I'm thinking it may be best to save up, improve my credit history and if I still want one, get one through my bank instead of a third party

CLAPTON

if your bf has a decent credit rating and yours is poor; then having a joint account will damage his

FATBALLZ

Usually only parents will be guarantor, or somebody else might do it if they really really love you, or if they don't understand what a guarantor is. Only complete mugs agree to be guarantors. Do you know any? If your family can't/won't do it you're probably screwed I'm afraid.