Should I be a guarantor?

iolanthe07

Only sign up as a guarantor if you have the cash to pay off the loan the day he defaults (chances are that he will), That way you won't be chased by aggressive lenders wanting their money back. Better still, as others have said, take out the loan yourself and keep the car in your ownership until he pays it off.

enthusiasticsaver

A definite no from me too. Firstly if he has a poor credit rating the only loans available to him, guaranteed or not, will be high interest rates.

Is his credit history poor because he is bad with money and if so, why would you consider taking out loan for him? Guaranteeing it is tantamount to you taking it out as if he defaults the lender will chase you and it will affect your credit status if loan defaulted.

What happens if you have a relationship breakdown? Can you afford to lose the money if he walks away?

The car will remain the property of the finance company until repaid and if loan defaulted they will take the car back.

If you still insist you are willing to take the risk and lose money if necessary then take out the loan in your name and register the car in your name so you have some security should he not pay up.

My feeling though is you should let your boyfriend stand on his own two feet financially and leave him to sort this without involving you. Help him out with budgeting advice if he has a tendency to overspend and miss payments and encourage him to save towards the car. You say you have no doubts about him repaying the loan but anything could happen - he could lose his job, you could part company, he could crash the car and not be in position to get it repaired, lose insurance or whatever. This forum is littered with posts from people helping out friends and relatives and regretting it later.

DCFC79

Is he bad with money, if he is maybe he needs to look at what hes spending and cut back.

Does he have defaults on his credit fole hence his rather poor credit history.

Apologies looks like I've repeated some of the previous advice.

engineer_amy

Carrieanne wrote: »

Another vote for don't become a guarantor!

I don't care if the beau is a cross between Leonardo Di Caprio and George Clooney - use your noggin and not your fanny when making this decision.

This is the best advice I have ever read!

macman

OP, what sort of 'finance'? HP, PCP, personal loan? The consequences of a default vary greatly according to the type of finance agreement.
That said, don't do it anyway.

27cool

As others have said. He can't get a loan for a reason.The reason being, that he is not in the habit of paying it back.
Don't get involved, especially at the high rates that guarantor loans are charged.
If you had read previous threads on the subject, you would not even be considering going down the guarantor route.
I can't think of a single good reason to be a guarantor.
It's a mugs game.

dresdendave

26 replies so far, all saying DON'T DO IT!.


Perhaps the OP could let us know if they have listened to the advice, or perhaps we just have to wait six months for a new post along the lines of....I was a guarantor for my ex-boyfriend and now I'm lumbered paying for his car or suchlike.

Puddylove

Don't do it!

That's 27 posts now.

I like to think that if the OP was smart enough to post here for advice, they've got doubts already and wion't do it.

iolanthe07

Puddylove wrote: »

Don't do it!

That's 27 posts now.

I like to think that if the OP was smart enough to post here for advice, they've got doubts already and wion't do it.

I expect we'll never hear from her again so we'll probably never know.

Andyjflet

No, Ive lost a friend who asked me to guarantor a loan for her but I wouldnt do it, she has shaky history at best.