Loan for low income & poor credit

lalaluna88

Hi all, I might be looking for the impossible here. 
As the title suggests, I'm looking for a loan due to unexpected circumstances. I'm going to need around £8000. 
However, I'm low income and have a 'fair' credit rating. I've done a couple of soft searches and my chances are slim to non existent. 
I have a relative who can act as a guarantor but with my low income and credit would I still qualify for that type of loan? Or are there any other options I've missed? In ordinary circumstances I wouldnt consider borrowing money but I'll be honest I'm desperate.

[Deleted User]

If you absolutely have to have the loan for a new kidney or to pay a ransom for a small child, then it sounds like your only option is a guarantor loan.  But given the high odds of them having to pay it back, please make sure they understand the consequences. 

Then when they do, ask them to give you the money themselves and you can repay them.

Ebe_Scrooge

^^^ This.

Really, there are very few things in life that are that urgent.  Do you really really REALLY need to borrow ?  If you genuinely do, then forget about a guarantor loan, they're horrendously expensive.  Far cheaper is for your relative to take out a loan themselves at a much more reasonable rate of interest (assuming they have a better credit rating than you), give the money to you and then you pay them back.  The general advice on here is never to borrow from a friend or relative, it can lead to some very awkward situations when the borrower fails to repay the lender.  But with a guarantor loan, it's essentially the same situation - if you fail to keep up repayments, the guarantor will be liable anyway.  But ultimately, I'd question what you need the loan for. 

Grumpy_chap

What do you need this £8k for?  There may be ways to reduce or avoid the expense, or the product / service may offer a finance route.

MallyGirl

Ebe_Scrooge said:

^^^ This.

Really, there are very few things in life that are that urgent.  Do you really really REALLY need to borrow ?  If you genuinely do, then forget about a guarantor loan, they're horrendously expensive.  Far cheaper is for your relative to take out a loan themselves at a much more reasonable rate of interest (assuming they have a better credit rating than you), give the money to you and then you pay them back.  The general advice on here is never to borrow from a friend or relative, it can lead to some very awkward situations when the borrower fails to repay the lender.  But with a guarantor loan, it's essentially the same situation - if you fail to keep up repayments, the guarantor will be liable anyway.  But ultimately, I'd question what you need the loan for. 

Yes - if you fail to make payments it will fall to your poor guarantor and they will be hit by the awful interest rate that your credit position led to, rather than a decent rate that they might get on their own merit.
There has to be another option than putting someone you know - and presumably like - in this position.

MinuteNoodles

lalaluna88 said:

Hi all, I might be looking for the impossible here. 
As the title suggests, I'm looking for a loan due to unexpected circumstances. I'm going to need around £8000. 

I cannot think of a single thing which is so urgent it will cost £8000 other than the roof coming off the house or serious structural damage to your home. I can think of a whole raft of stuff that people think of as desperately urgent that they'll die without which actually aren't or can be done for a whole load less money if you're willing to lower the bar, cars being a great example of this because if you need a car urgently and you're skint you can find something for a few hundred quid that'll do the job for a while but people seem to feel the need to have to get a new/nearly new one.

It is extremely doubtful anyone is going to lend you the money if you're on a low income, you'll insta-fail the affordability tests. Your best route would to be to find a mug family member or friend with a much better financial standing to take out a loan for you and you repay them. As Ebe_Scrooge says it's much cheaper than a guarantor loan and they're in the same precarious hoping you'll repay it or they'll have to situation as if you took out a guarantor loan from the likes of Amigo with them as the guarantor.

lalaluna88

Thank you for your replies. Borrowing is a last resort but I can't see many other options. Hopefully not being too outing, it's for solicitor fees as I'm being taken to court over my children. 

onlyfoolsandparking

Have you checked whether you qualify for Legal aid?

I know the rules have changed regarding Legal aid but I'm reasonably sure it still exists.

zippygeorgeandben

I can only echo what others have said really.  Please don't go down the guarantor loan, don't even contemplate that journey.  What if you need to borrow more money for fees in the future? Are you going to go to the same person? 

People fall out and never speak again when family and finances get mixed up together.

ict_guy

Certainly don’t be borrowing money to throw at a solicitor - OMG!! Go and get some free advice and see if you can get legal aid. If not, join the right legal forums and see if you can get some assistance from others to help you represent yourself.

[Deleted User]

Legal Beagles forum...... https://legalbeagles.info/forums/
I don't know anything other than our own @sourcrates recommends it a lot - you could even send him a PM first and see what he thinks .....