Guarantor loans

In2deep

Can anyone help please? My mum went as guarantor for me so I could get a loan as my credit rating is very poor. She has recently applied for an Argos card and been declined. She has other debts which are up to date & has not missed any payments ever, although she has told me that the 2 credit cards she has are almost at the limit.

She says that it must be the fact that she is my guarantor for my loan which is effecting her credit rating, but I'm not so sure.

P.s I've had the loan for 6 months or so now & never missed a payment on it.

I'm starting to feel guilty now, that It might be my fault she can't get anymore credit. I've told her that nobody is willing to lend at the moment because of the economic climate, but she still seems to think its because she is guarantor for my loan.

Many thanks guys.

Tixy

Being guarantor is unlikely to be the reason for the problem (or the sole reason for the problem) as you've made payments on time. In fact its unlikely any other potential lender would even know she has been guarantor on a loan.

If her cards are maxed that is seen as a negative by lenders
Has she got copies of her credit files to see what they show?

You say she has other debts - a lot of people are being turned down on affordability calcs - how do her total debts compare to her salary? (you might not know this of course - but you can tell her thats a common problem).
If she has an overdraft she uses every month thats also the sort of thing thats seen as a negative.

CLAPTON

probably it would be better for both of you to consider living within your means and stop borrowing.

instead start to pay down your debts and save all that interest you are paying each month