General query about best way to borrow

goolip

Hi,

I am in the process of trying to help my friend secure a loan of £5,000. My friend moved back home, works full time and has no credit apart from a mobile. We submitted applications to clysedale and sainsburys at the weekend and both have been rejected. I am willing to go on as the second name as this is a family friend and I know I wont be in any danger.

Any advice on how to actually get approved for a loan, Ive had no problems and have recently changed my mortgage, the huge rate ones are a no-no. Failing that, can you have a joint credit card?

Thanks for your help,


Lizzie

DCFC79

goolip wrote: »

Hi,

I am in the process of trying to help my friend secure a loan of £5,000. My friend moved back home, works full time and has no credit apart from a mobile. We submitted applications to clysedale and sainsburys at the weekend and both have been rejected. I am willing to go on as the second name as this is a family friend and I know I wont be in any danger.

In danger of what ?

You are willing to be the secnd name on a loan ?

goolip wrote: »

Any advice on how to actually get approved for a loan, Ive had no problems and have recently changed my mortgage, the huge rate ones are a no-no. Failing that, can you have a joint credit card?

Thanks for your help,


Lizzie

So a joint credit card with your friend ?

Well first port of call the friend needs to get all 3 credit reports from all 3 cra's. Could be many reasons for the decline like the friend didnt pass the lenders scrore.

Sorry for the questions, im just trying to see if my suspicions are right.

poppasmurf_bewdley

goolip wrote: »

Hi,

I am in the process of trying to help my friend secure a loan of £5,000. My friend moved back home, works full time and has no credit apart from a mobile. We submitted applications to clysedale and sainsburys at the weekend and both have been rejected. I am willing to go on as the second name as this is a family friend and I know I wont be in any danger.

Any advice on how to actually get approved for a loan, Ive had no problems and have recently changed my mortgage, the huge rate ones are a no-no. Failing that, can you have a joint credit card?

Thanks for your help,


Lizzie

There have been numerous posts on this and other forums about people like you who have followed this path, and have come a cropper.

The only advice I will give you is to look up and read these posts before you go any further.

CLAPTON

goolip wrote: »

Hi,

I am in the process of trying to help my friend secure a loan of £5,000. My friend moved back home, works full time and has no credit apart from a mobile. We submitted applications to clysedale and sainsburys at the weekend and both have been rejected. I am willing to go on as the second name as this is a family friend and I know I wont be in any danger.

Any advice on how to actually get approved for a loan, Ive had no problems and have recently changed my mortgage, the huge rate ones are a no-no. Failing that, can you have a joint credit card?

Thanks for your help,


Lizzie

what does your friend earn?
how long have they been in the job
on the electoral roll?
what do their credit files show
what debt do they have?


and there is no such thing as a joint credit card

goolip

DCFC79 wrote: »

In danger of what ?

You are willing to be the secnd name on a loan ?



So a joint credit card with your friend ?

Well first port of call the friend needs to get all 3 credit reports from all 3 cra's. Could be many reasons for the decline like the friend didnt pass the lenders scrore.

Sorry for the questions, im just trying to see if my suspicions are right.

Thats it, I trust that I wont be liable for any of the repayments. I will try and find the other posts though, just so I have all the information. I suppose it could be quite easy to get into trouble that way if the person you were helping was untrustworthy, but as I say this is a family friend so I feel ok with it.

Thank you

Lizzie

MEM62

goolip wrote: »

Hi,

I am in the process of trying to help my friend secure a loan of £5,000. My friend moved back home, works full time and has no credit apart from a mobile. We submitted applications to clysedale and sainsburys at the weekend and both have been rejected. I am willing to go on as the second name as this is a family friend and I know I wont be in any danger.



You know nothing of the sort. Loans to friends very often result in the loss of your friend and the money.

Any advice on how to actually get approved for a loan, Ive had no problems and have recently changed my mortgage, the huge rate ones are a no-no. Failing that, can you have a joint credit card?


If you cannot be dissuaded from placing yourself in this position then the safest bet is to take the loan yourself, give the cash to your friend and agree a repayment plan with them. This way you may still loose the money and your friend but at least your credit history will not be trashed when your friend starts missing payments against a loan that you guaranteed.

Thanks for your help,


Lizzie

I am not being critical of your desire to help your friend, which of course is admirable, but you seriously need to reconsider your viewpoint on the risks involved.

BillJones

goolip wrote: »

Thats it, I trust that I wont be liable for any of the repayments.

The lenders, who have vast amounts of experience when it comes to lending, are not confident that your friend will keep up the ayments, on time, through the life of the loan.

Why do you believe them to be wrong?

Even if they do keep the payments up, it is very likely that your friend will start to resent you because of this. There will be times when the payment is hard to make, or when there is a better use to which they could put the money. At those timm es they will probably be unhappy that it is your guarantee forcing them to keep up the payments.

If you do trust them 100%, why not take out the loan in your own name, and have them pay you back? If you'd hesitate to do this, then it tells you all that you should need to know about thewisdom of becoming a guarantor.

getmore4less

goolip wrote: »

Thats it, I trust that I wont be liable for any of the repayments. I will try and find the other posts though, just so I have all the information. I suppose it could be quite easy to get into trouble that way if the person you were helping was untrustworthy, but as I say this is a family friend so I feel ok with it.

Thank you

Lizzie

it' not won't pay it's can't pay(or priorities lie elsewhere)

If you are so sure lend them the money yourself.

What on earth do they need £5k for?

DCFC79

goolip wrote: »

Thats it, I trust that I wont be liable for any of the repayments. I will try and find the other posts though, just so I have all the information. I suppose it could be quite easy to get into trouble that way if the person you were helping was untrustworthy, but as I say this is a family friend so I feel ok with it.

Thank you

Lizzie

Helping your friend is good but the fact they are a family friend means nothing, you only have have to look at the " lending money to family and friends" thread.

goolip

I dont really want to get a loan purely because when I was married, I had all the loans etc in my name and when my husband disappeared I was left with the debt even though it was for things we had together such as the car. I know my friend wouldnt do this but I wouldnt get a loan for anyone, I dont even want one myself - my mortgage is quite enough.

Thank you.


Lizzie

Scotjock

goolip wrote: »

I dont really want to get a loan purely because when I was married, I had all the loans etc in my name and when my husband disappeared I was left with the debt even though it was for things we had together such as the car. I know my friend wouldnt do this but I wouldnt get a loan for anyone, I dont even want one myself - my mortgage is quite enough.

Thank you.


Lizzie

Sorry to say bu by being gaurantor on a loan you are doing exactly what you are trying to avoid, ultimatley the buck stops with you if friend decides not to pay, please take the advice given as if you take the loan at least its only your pocket that is hurt should friend let you down.