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

vax2002

Why Do you need to guarantee his "3rd years rent" ?
Is it not a 6 month AST, what exactly have they asked you to sign ?
You may be better getting it read, you may be guaranteeing to pay rent on a property he wont be living in.

pimento

He is a third year student at university and will be sharing a four bedroom flat with three mates (all also 3rd year students at the same university). The tenancy is a 10 month AST. None of them has any income as they are student except their student loans which will be used to pay the rent. In my son's case, he will pay in three lots when the loan comes in (it comes in three parts). I won't be paying his rent.

The landlord wants each student to have a guarantor. I assume because students have a tendency to spend their money on things other than rent.

It's all pretty standard. I also guarantored him last year in a different student house.

pimento

joedenise wrote: »

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.

I'm sorry if I haven't been clear.

My son does not want a loan or a credit card. He will be paying his own rent but is a student so needs a guarantor (me).

I want a second card to take on holiday with me to save me carrying bundled of New Zealand dollars in my pocket. We are not travelling until November so I have no need to apply for it until later in the year.

I could use the credit card I already have but have read that often when used abroad the card triggers a fraud button and can sometimes be blocked until you sort it out. I've read that it is advised by many that taking a second card with a different provider mitigates any inconvenience you might have being 12000 miles away from home with no way to pay your hotel bill.

Voyager2002

pimento wrote: »

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?

From what you say, most credit card providers would be delighted with your application and denial would be highly unlikely.

However, since the process of issuing a card may take longer than you expect, and anyway it takes a while to identify the best card for use abroad, I do suggest you crack on with this now.

pimento

Thanks Voyager. I'm really hoping I will not need to use the second card at all. It really is just for contingency.

Any recommendations for a card that won't mind me closing it a few months after opening it?

meer53

I was guarantor for my son twice whilst he was at Uni. I can't recall ever being advised about any searches being made, it certainly never affected me getting credit. I'd call the letting agent and ask them whether a search is needed.

pimento

Meer, the accompanying notes that came with the form actually say that a search of my credit file will be made.

JohalaReewi

pimento wrote: »

... will the credit search on my file affect my acceptability for a credit card that I plan on applying for later in the year?

Do you know for sure that you will be credit searched or just identity checked?

When I was a guarantor my daughter, there were no searches on my credit history.

pimento

The form definitely said a credit check would be run.

Hairymonster

Also you say you have heard of credit card companies cancelling cards for foreign transactions; whilst this is true it is usually with people who have failed to inform the companies of their travel. If you tell them you are going to new zealand(and any stopovers) between the dates you are going they can put this notification onto your account