Loan poor credit

carina62

My daughter has been rejected for a Guarantor Loan (with me having acted as Guarantor) and I think it is because of my poor credit history. Would going down a Secured Loan be an option? I own 2 properties?

carina62

sorry Tixy in answer to your question, my daughter is a single parent and has a little part time job (3 days a week) to fit around my grandson but she is struggling financially and she said that a £4,000 loan would put her on the 'straight and narrow' - I want to help her.

bigadaj

Guarantor loans are generally a nightmare, you get the worst of both worlds.

Whenever you take a loan out someone has to pay it back so that's the first thing, can you or your daughter afford to make repayments?

If so you'd be better taking out a loan in your own name, though if your credit is poor this may be difficult and may be secured. If it is secured make sure you check the tems carefully and see if they can vary the interest rates or make excessive charges, if so then walk away.

EmmaHerts

carina62 wrote: »

sorry Tixy in answer to your question, my daughter is a single parent and has a little part time job (3 days a week) to fit around my grandson but she is struggling financially and she said that a £4,000 loan would put her on the 'straight and narrow' - I want to help her.

If she can't cope now, then a few months down the line, won't she be back in the same situation but probably worse off since she will owe you money?

tomtontom

carina62 wrote: »

sorry Tixy in answer to your question, my daughter is a single parent and has a little part time job (3 days a week) to fit around my grandson but she is struggling financially and she said that a £4,000 loan would put her on the 'straight and narrow' - I want to help her.

Probably best to help her with budgeting than letting her get into debt.

carina62

yes I agree, I have offered to help her to budget as I don't think I will get a loan secured or unsecured so I may be able to help her on a monthly basis with say a 'top up' to her income but only for say 12 months. I really don't know what else I can do to help

matttye

carina62 wrote: »

yes I agree, I have offered to help her to budget as I don't think I will get a loan secured or unsecured so I may be able to help her on a monthly basis with say a 'top up' to her income but only for say 12 months. I really don't know what else I can do to help

Yep a loan is definitely not an option here.

If you're struggling financially the solution is less debt / outgoings, not more.

Help her fill out a Statement of Affairs. This will show where her money is going. You can either post it on here or not. If you post it on the debt free wannabe forum, people can offer suggestions on how to reduce outgoings.

carina62

thanks :-)