flm loans

rosie_millport

Hi i am new to this forum and i wonder if you can help me i am a gaurontor for a loan although the borrower pays every month she pays a day late and the direct debit bounces will this affect my credit rating in the future with the late payments

DCFC79

Were you aware of what being a guarantor entailed ?

It might affect your credit history but for a more definite answer id wait for someone more knowledgeable to reply.

Tixy

If the payer paid a day late then the lender could register a missed payment on the account on your credit file, if it was only a single day late then its possible that they will not on the first occasion.

A single late payment (assuming you have other credit accounts that are all paid on time), shouldn't have a massive impact on your ability to get credit in the future/or the rate you might be offered.

rosie_millport

Thanks for that the direct debit bounces nearly every month so in the two years i,ve been gaurenter the payments have bounced about 15 times

Tixy

In that case I'd be surprised if they haven't registered at least some missed payment markers on your file. Best thing would be to get copies of your credit reports to check (the £2 reports are fine, you don't need to sign up for the ongoing service - though you could use the free trials if you haven't already)

Apples2

I'm surprised they haven't jumped into your account for the payments.

iluvmarmite

This may sound silly, but if the payments are one day late every month, then cant you ask for the payment date to be changed to the next day? It will save on bank charges as well as late loan payment charges and Im sure they will agree as its only one flippin day!

bris

No, you won't get any markers against you. The person you went gaurantor for will. You wont need to worry about it until they decide to chase you for the payments instead. They won't do this until the loan is in default, as it's being paid just now the only damage being done is to the person who has the loan.

Tixy

bris wrote: »

No, you won't get any markers against you. The person you went gaurantor for will. You wont need to worry about it until they decide to chase you for the payments instead. They won't do this until the loan is in default, as it's being paid just now the only damage being done is to the person who has the loan.

FLM loans appear on the credit file of the guarantor. If the person paying misses payments/stops paying it is the guarantors file that is affected.

(Its why they insist on making the original loan advance to the guarantor not to the person who is paying for the loan).

duchesspink1

why doesn't the person paying the loan get the payment date changed? surely that would have been the first thing you'd do when you'd be in that situation

Apples2

duchesspink1 wrote: »

why doesn't the person paying the loan get the payment date changed? surely that would have been the first thing you'd do when you'd be in that situation

Good idea in principle but I'm not sure it would make any difference. The borrower cannot afford the monthly payment anyway, moving the date later simply means he/she will run out of money earlier the next month....ergo... Payday loans here we come.