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About to become a guarantor for my student son...

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pimento
pimento Posts: 6,243 Forumite
Part of the Furniture 1,000 Posts
... will the credit search on my file affect my acceptability for a credit card that I plan on applying for later in the year?
"If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
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Comments

  • Yes, it will likely leave a search on your credit file.
    Thinking critically since 1996....
  • pimento
    pimento Posts: 6,243 Forumite
    Part of the Furniture 1,000 Posts
    Enough to turn a probable acceptance into a refusal?
    "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
  • RobertoMoir
    RobertoMoir Posts: 3,458 Forumite
    Part of the Furniture Combo Breaker
    pimento wrote: »
    Enough to turn a probable acceptance into a refusal?

    That depends on the state of your finances in general and the criteria of the lender. I doubt anyone here could give a definite answer.
    If you don't stand for something, you'll fall for anything
  • pimento
    pimento Posts: 6,243 Forumite
    Part of the Furniture 1,000 Posts
    Oh, it's been many a long year since I last applied for credit. I do have a VISA card (with my bank, First Direct) but am planning a big trip to New Zealand later in the year and wanted a spare card in case there might be a problem with it.
    The balance is currently £100 (credit limit £3000. I asked FD specifically not to raise it).

    I have a mortgage of £65k, no other debts and an income of £50k. I've lived at my current address since 2001 (and am on the edited electoral register) and I've been with my current employer since 1997.

    Should I apply for the new card now, before I complete the guarantor forms?
    "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
  • [Deleted User]
    [Deleted User] Posts: 2,175 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Name Dropper
    Instead of applying for a new card, why not ask FD to increase your limit?
  • Scarpacci
    Scarpacci Posts: 1,017 Forumite
    pimento wrote: »
    Should I apply for the new card now, before I complete the guarantor forms?
    I would say that is more likely to cause a denial on your guarantor forms; more likely than your guarantor search now would negatively affect your credit card application in a few months.

    A single search is unlikely to be a big factor in any scoring, but it holds more relevance the closer it is to another search. Searches are primarily used to weed out people desperately applying for credit in a short space of time.

    A few months down the line, I think the impact of this guarantor search is very much likely to be little to none. You would have to be a pretty borderline case for it to hold much sway.
    This is everybody's fault but mine.
  • vax2002
    vax2002 Posts: 7,187 Forumite
    The lender thinks it is a dead cert your son will not be able to pay the loan.
    Anyone else lending money such as credit cards will take in to account if you become laboured with the Guarantor loan and thus have to default on your own debt to some extent.
    Money lenders are Like bookmakers, its all about odds.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • pimento
    pimento Posts: 6,243 Forumite
    Part of the Furniture 1,000 Posts
    Instead of applying for a new card, why not ask FD to increase your limit?

    It isn't about available credit but having a back up card in case one is blocked by my bank as a security precaution while I'm away. I won't be using the credit facility, I will be clearing the balance with savings as soon ad I get home.
    "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
  • pimento
    pimento Posts: 6,243 Forumite
    Part of the Furniture 1,000 Posts
    vax2002 wrote: »
    The lender thinks it is a dead cert your son will not be able to pay the loan.
    Anyone else lending money such as credit cards will take in to account if you become laboured with the Guarantor loan and thus have to default on your own debt to some extent.
    Money lenders are Like bookmakers, its all about odds.


    It's not a loan that i am guarantoring, its his rent for his student house for his third year at uni.
    "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
  • joedenise
    joedenise Posts: 17,642 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You say you'll be clearing your CC with savings on your return from NZ. If you have enough money saved to do that wouldn't it make more sense to pay your son's rent up front for him (I'm assuming that's the reason he wants the credit card) and he sets up a monthly SO to pay it back to your savings account? This way wouldn't leave a search on your credit file and you shouldn't have a problem applying for another CC later on.

    There is also the chance that he wouldn't just use the CC to pay his rent and would then end up with a debt he can't manage and you'll end up having to pay that as well as his rent.

    Just a thought.
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