Some advice required please

littlesparrow1

My boyfriend and I would like to get a loan to consolidate his debts. As he has a poor credit score and I have a good one, we're thinking of getting the loan in my name only.

However I bought a car in September so have £6,000 owed on car finance, which I imagine is lowering my ability to gain further credit.

I earn £18,500 a year, my partner earns £8,000 and we're looking to borrow around £7,000 over 3 years.

We were wondering what our best option would be, either to get the loan jointly or with me on my own, and whether we'd get a better deal going in to the bank, instead of trying to apply online.

So far I've been offered 12.9% apr from Nationwide on an advertised loan rate of 7.6%.

As I've never really had a loan before I just would appreciate some advice on how to go about it!

Thanks a lot.

[Deleted User]

have a good read of this forum,there are dozens on dozens of cases like yours where one partner cant get credit and the other can,then the relationship goes t*ts up and youre left to pay the loan.

having said that 12.9% for 7k is about the going rate atm,as daft as it sounds you might have been offered a lower rate for 7,500

pinkarsenalprincess

Don't get the loan in your name. Bad bad move.
Nothing in life is certain. You take out the loan, pay off his debts and then he runs off and shacks up with someone else debt free, leaving you to pick up the pieces.

Apples2

Absolute madness.

I've lost count of the posts on here once the relationship fails,

"I took the loan in my name but now he has the car but won't pay. Surely I can take him to court and get my money off him!"... err No you can't.

I would put good money on you ending up with this debt to repay and him off with the car elsewhere.

Tell him if he wants a nice car, go out and get a well paying job and earn the money for it himself. Seriously, why should someone earning £8k with a poor credit history be driving a £7k car.
The answer is that he doesn't need to earn a good wage if there is someone to buy all his toys for him.

Don't get suckered into this crazy idea.

Hax

It would be madness for you to take out a new loan that equates to almost 90% of your OH's gross salary - I suspect that you would be unable to get that amount anyway, given your current outstanding loan amount of £6K and your salary of £18.5K! It seems to be the case that 50% of gross income is the most that can be borrowed.

What sort of debts does your OH have? If they have credit cards and you really are intent on taking on their debt, then I would suggest that you look at trying to get a credit card with a 0% balance transfer offer. That way, you will be taking on a smaller amount of their debt leaving you less vulnerable should things end up going sour. Also, as that amount would be interest free, your OH could direct more of their money towards paying off the remaining debts.

But, IMHO, your best bet would be to get your OH to use the snowball method to pay off what he already has - have a look here: click me for info on snowball calculator

mmikailian

Dont do it been there and done that and ended up with all the loan to pay off and a child to bring up on my own, you may love him now but money and relationships dont work please be warned!!

cos_2

Wow - I read the OP and was about to warn her about taking on someone else's debt. I'll say no more ...

callistris

Based on your figures you mention in your post and not taking into account any other credit you may have I doubt very much you will get a loan for £7 grand, more likely the most you'll get is £3000 but thats not allowing for any other financial commitments;)

I'm basing this on the current financial climate which is roughly about 50% of income is allowed on credit, for you to borrow £7000 would put you over this threshold:)

Ideas like this might sound good in pillow talk, but in reality its dangerous territory:D

Even with the loan repayments to think about you also have the cars running costs fuel, road tax, insurance, servicing etc etc it all adds up!

chalkie99

As per the excellent advice from other posters -

DON'T DO IT!

And, just for the record, in case you didn't realise, a joint loan will not protect you. If it all goes pear shaped you would still be liable for the full amount of the loan, not just half of it.

bouncydog1

Absolute, total madness! A relative allowed her husband to take out lots of loans in her name - he was on a 6 figure salary but had a habit with the horses. Result: they lost their house, got divorced and guess what - she was forced into bankruptcy while he carries on as normal.

Never, ever get a loan for someone else, particularly if they have a poor credit history - nice result for your boyfriend - he gets his debts paid off, walks away and leaves you to pay the lot off whilst he starts again - the £6k car finance will be the least of your worries.

clivejohnson

Pleae, DON'T BE A STASTSTIC! Follow the excellent advice on this thread. Please be warned.What if you split up?What you going to do then? As others have said, the car loan will be the least of your worries.......