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

Tixy

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.

Lets hope she does this time. Please try to press home this point to her. All she will do is end up £70 or more out of pocket. If she only has £200 saved that is a big chunk to effectively throw away.

If she is only 18 then she might struggle to borrow £1k even in a few months, even after she has been employed a bit longer, had the bank account longer etc. Aside from the possibility you mention of loaning/gifting her the money yourself then saving up or accepting a cheaper housing option are her options. At 18 few people rent a property alone, would she not consider a house/flat share?

DJ9

sulkisu wrote: »

** 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.

Stupidly shes already done this today. Shes phoned and cancelled this evening.

PasturesNew

First fact: She doesn't have a secure job, nobody does - and employers can get rid of you without any reason for at least a year (it might be two now)
Second fact: If she DID lose that job, the dole would only pay her for the LHA shared room rate.
Third fact: If she DID lose that job, her dole would only be £51/week, not enough to pay her bills - and she'd still be short of at least half the rent each week
Fourth fact: Heating costs a BOMB!

She'd be best off sitting out the winter in a shared house, without the hassle of big bills, or being responsible for them all. IF .... the job turned out to not be what she thought, the dole would be enough for her to continue living in the shared house until she found another job.

Overall .... a shared house is THE way to go.

Tixy

Has she checked if any money has been taken from her account yet?

Find out which company/website she applied to. Try to find out whether its a loan broker but technically legitimate company registered in the UK, or whether its a total scam website (often originating in India).

If its the former then if they have taken a fee from here the T&Cs on the website will tell her where to write to to get most of the fee back (they can keep £5 but have to refund the rest - eventually).
If its the latter suggest she needs to immediately cancel her bank card.

DJ9

PasturesNew wrote: »

First fact: She doesn't have a secure job, nobody does - and employers can get rid of you without any reason for at least a year (it might be two now)
Second fact: If she DID lose that job, the dole would only pay her for the LHA shared room rate.
Third fact: If she DID lose that job, her dole would only be £51/week, not enough to pay her bills - and she'd still be short of at least half the rent each week
Fourth fact: Heating costs a BOMB!

She'd be best off sitting out the winter in a shared house, without the hassle of big bills, or being responsible for them all. IF .... the job turned out to not be what she thought, the dole would be enough for her to continue living in the shared house until she found another job.

Overall .... a shared house is THE way to go.

The flat is attached to the owners property and comes with all bill inclusive including council tax ad tv license @ 550 a month which would be ideal for her as she only has to worry about food and one bill.

AppleMatt

DJ9 wrote: »

Stupidly shes already done this today. Shes phoned and cancelled this evening.

Please tell her that they will more than likely kick up a fuss about refunding any charges, and to expect a fight to reclaim them.

And be prepared to receive dozens of sales calls for everything from debt advice, to more loan "services", and PPI claims!

I'm afraid these companies are little more than charlatans preying on the desperate, as shown here!

It is very unlikely for a loan to be granted in her situation - age, lack of provable stability, etc. I'm sorry it isn't better news

DJ9

Tixy wrote: »

Has she checked if any money has been taken from her account yet?

Find out which company/website she applied to. Try to find out whether its a loan broker but technically legitimate company registered in the UK, or whether its a total scam website (often originating in India).

If its the former then if they have taken a fee from here the T&Cs on the website will tell her where to write to to get most of the fee back (they can keep £5 but have to refund the rest - eventually).
If its the latter suggest she needs to immediately cancel her bank card.

Ok thanks will do. Shame she didnt come to me before getting herself into a pickle. At east she seems to have realized it will need to be family help or save hard ad stay put.

amr547

Her best bet is just to save up the deposit herself. Getting a loan is just a recipe for disaster especially if she loses her job. We struggled to get started in the first few months and ended up being in the negative a few times - I can't imagine doing it on my own! Can't she share a place?

However, after battling with stupid estate agents for 10 months I'd recommend a private let rather than estate agent.

shop-to-drop

Has she considered a room in a shared house? The deposit and rent would be significantly less and can be a great experience for young adults.

DJ9

amr547 wrote: »

Her best bet is just to save up the deposit herself. Getting a loan is just a recipe for disaster especially if she loses her job. We struggled to get started in the first few months and ended up being in the negative a few times - I can't imagine doing it on my own! Can't she share a place?

However, after battling with stupid estate agents for 10 months I'd recommend a private let rather than estate agent.

I started really small with enough for deposit and always stuck with private let. Defo best route to take. Hopefully she will listen after tonight's debarkle.