My daughter needs a loan for a rental deposit with no credit rating

DJ9

Hi my 18 year old daughter is trying to raise a rental deposit for a small flat. The property is a private rental. My daughter has been working full time for only 2 months but has a secure job. She has been living unofficially in her friends static caravan for the past few months as a temporary measure but is finding it too cold hence wants to move. She can easily afford the rent on the new property but can not raise the deposit.
Unfortunately I am maxed out on my credit so can not help her. And my daughter has only been with her bank for a couple of months and therefore has no credit rating.
Can anyone point us in the right direction to resolve this? Are there grants or government schemes available?

shop-to-drop

How much has she been able to save over the last 2 months and how much does she need?

DJ9

She only has a couple hundred pounds as she has been paying rent and electric at her friends. She needs an extra £1000

CLAPTON

why can't she live at home for a few months and save up some money?

how much does she need ?

DJ9

She doesnt get on with her mum and landlord will not allow her to stay with us. She can stay the odd night but no more and he lives next door so we cant even do it on the sneaky plus we havent got the room.

Tixy

Has she tried applying for a loan and been declined? Who did she apply to? her own bank?

How quickly could she afford to repay the money she'd be borrowing for the deposit (on top of all her rent, higher outgoings etc).

She could possibly see whether there is a scheme in her local area and whether she would qualify for any reason - though that will depend on her circumstances and nothing you've posted would indicate the typical criteria - still its worth a look - see here - http://england.shelter.org.uk/get_advice/paying_for_a_home/rent_deposit_and_bond_schemes

If not, how long would it take her to save a deposit - could she manage it from next month's pay if she lives very frugally for a month? if so that may be the thing to try for a month before it gets very cold, perhaps trying to spend her evenings at yours or with friends etc and get an electric blanket for the bed.

Alternatively - she could look at house shares which are usually much cheaper and often don't expect an upfront deposit more than a months rent.

CLAPTON

how much does she need?

DJ9

Yes she spoke with her bank but they will not help until she has been running her account for 6 months. She could save up over a couple of months but she doesnt want to stay in te caravan for the next couple of months. She just needs a loan company that doesnt charge stupid interest that may be able to help. I will check out the shelter link but I think ive already looked at that but as she isnt classed as homeless they probably wont be able to help.

Tixy

She is likely to struggle to be accepted by any commercial loan company - at a guess she isn't on the electoral roll? plus only recently being employed will count against her, on top of the fact that she hasn't got any credit history.

Has she considered house share / rent a room for the winter and saving up to be able to get her own place in spring time.

By which time she should have been able to save a deposit and will know whether she wants to continue at her job/passed any probation period etc. And if she does still need a loan she'll have had chance to get on the electoral roll and had her bank account open for over 6months.

DJ9

Ok thanks. I will have to try my bank in person or try to convince her to stay put and save hard. Shes been looking at some dodgey loan finder company that her friend recommended who charge £70 to find the loan and the loans start at rep 50%interest. Im hoping ive talked her out of such a stupid thing but shes 18 and doesnt usually listen to me.

sulkisu

DJ9 wrote: »

Ok thanks. I will have to try my bank in person or try to convince her to stay put and save hard. Shes been looking at some dodgey loan finder company that her friend recommended who charge £70 to find the loan and the loans start at rep 50%interest. Im hoping ive talked her out of such a stupid thing but shes 18 and doesnt usually listen to me.

** Tell her on no account to to give them her bank details, even if they say it is needed to verify her identity or whatever. They will take the money but she will not get a loan. These companies promise to find loans for people to apply for, but they cannot guarantee that they will be accepted - they are usually refused. There are many horror stories of this happening on this Forum.