Loan Advice

Apee

Hi,

A family member is planning on getting out a loan on behalf of his girlfriend to buy a car, she's going to pay it off but can't get her own loan due to bad credit, it doesn't sound like a solid idea to me but before I try to intervene I was wondering if he would get one or not. At the moment he's on long term sick pay (SSP), he's been off work for about 5/6 months in the last year. Would he get refused on these grounds? I would rather this fizzle out naturally so I don't look like the bad guy by intervening.

Many Thanks

oldhand

Apee wrote: »

Hi,

A family member is planning on getting out a loan on behalf of his girlfriend to buy a car, she's going to pay it off but can't get her own loan due to bad credit, it doesn't sound like a solid idea to me but before I try to intervene I was wondering if he would get one or not. At the moment he's on long term sick pay (SSP), he's been off work for about 5/6 months in the last year. Would he get refused on these grounds? I would rather this fizzle out naturally so I don't look like the bad guy by intervening.

Many Thanks

Any loan company will look at your ability to repay the loan so ssp is unlikely to impress them.Likely doing him a favor if girlfriend has a bad credit history as she has form for non payment.

poppasmurf_bewdley

It's a very bad idea to take out a loan on behalf of somebody else. We have so many people coming onto these forums who have done such a thing, only to find themselves up he creek without a paddle when relationships break down/money isn't paid/car is duff/etc/etc.

On the bright side, if your family member is off work, then it is doubtful he will get a loan anyway.

The best way to approach this with your relative would be ask him why the girlfriend has such a bad credit rating in the first place. It isn't because she always pays her debts off, that's for sure.

PeacefulWaters

Disaster waiting to happen.

dealer_wins

I would also strongly advise not to take out the loan.

He will very likely be left with the loan to pay and no car or girlfriend.

There is a reason she cant get a loan, and that is because she cant afford it and wont pay it back!!

27col

Look at it this way. Would you lend money to someone who has a record of not paying their debts.
Also. would you lend money to someone who does not have a regular income large enough to service their debt.
Answer: No and No.

DCFC79

jaynorth wrote: »

Well if you take my suggestion then i would strongly recommend your friend as not get into further trouble by taking loan under the current situation. Rather he should wait for little more time or ask his GF to take the loaning burden on her own, so that he can concentrate on his career better. Since paying back the debt can a big issue in life.

Either the GF takes out the loan herself, she either goes without a car or she buys a banger and runs it till it dies.

Paul_the_Painter

If by some crazy chance your family member doors get a loan for the car. He needs to buy it, keep the receipt, then get girlfriend to (in writing!) agree that the car is his until all patients have been made. There is of course nothing to stop the girlfriend being the registered keeper, but that is not the same as the owner!

But tell him not to do it.

Monkeyballs

All good advice above really, take it from someone who has bought things for a GF in the past only for them to do one...

Don't do it! If nothing else it will just help to drive (excuse the pun) a wedge between them as he struggles to make payments and she inevitably starts to not pay him back.

Add to that, even if he is on SSP this does not mean he has a poor credit history (just a low income) so if there are any problems down the line then it could ruin his file too

MB

pvt

dealer_wins wrote: »

I would also strongly advise not to take out the loan.

He will very likely be left with the loan to pay and no car or girlfriend.

There is a reason she cant get a loan, and that is because she cant afford it and wont pay it back!!

^^ Exactly what he said! ^^

She obviously has a history of not paying back money to banks that will pursue you with debt collectors and who will trash your credit history for you. So what Earthly reason would there be to expect her to pay back a soft target like her boyfriend?

20aday

Take it from someone who was careless with money at the age of 18; I was in a relationship with an absolute tool (I wish I'd seen it at the time!) and took out credit to buy him presents so he'd like me....

Needless to say it ended badly and left me in dire straits for many, many years.

If your friend has any sense he'll tell her to sort her own finances out so she can buy her own car (and ruin her credit files when she doesn't meet the repayments!)