(Very) Young person looking for first loan

bravotp

Hi MSE Team and followers,

Thank you in advance for any advice given, we will take on board and appreciate all comments.

I am posting to explain my son's position; Callum is 19, he has just finished a college course and has planned to join the UK military at this point for many years. Unfortunately a medical condition has forced him to postpone his joining date by a year or so, he is very disapointed but now is making a positive plan of action for the upcoming 12 months.

He currently works for a popular fast food chicken 'restaurant' and has done for the past 3 years, but doesn't want to spend a year covered in grease - which I fully understand. So an oportunity has presented itself for him to possibly work as a deckhand in the offshore wind farm industry. This will provide excellent hard work ethics, team work skills and seeing into the 'world of work' and also mix with others from an ex-military background. All in all, an excellent opportunity.

However he would have to first complete some basic safety and insustry related courses, which will cost around £1500. I am not in a position to magic this money up at such short notice and so he has enquired about a loan, which I would gladly guarantee him for, but he has hit a number of brick walls and dead ends.

Would anyone have any gems of wisdom to overcome the financial hurdle and give Callum a leg up to undertake the essential courses and embark on this great opportunity?

Many thanks again All!

SuperAllyB

Taking out a loan for him in your own name should be cheaper than a guarantor loan anyway, and to all intents and purposes is no different.

greensalad

As above, if you're guaranteeing a loan for him that's not much different than you getting a loan for him for the same thing.
However I'd first enquire whether the role he is working in are willing to train him? Or provide some sort of subsidised programme rather than him going out on his own to get the training first. 

bravotp

I have suggested this thanks Ally, and it is still probably the best option. He did want to try and get something himself to kick start his own credit history, it's a bit of the chicken and egg scenareo for young people.

[Deleted User]

bravotp said:

I have suggested this thanks Ally, and it is still probably the best option. He did want to try and get something himself to kick start his own credit history, it's a bit of the chicken and egg scenareo for young people.

It's the same eggs and chickens as it's always been for older people.

He needs to start simple, with bank accounts, ER, perhaps a phone contract, moving onto credit card usage so that he builds trust with lenders. Trying to jump straight into a loan is never advisable,even if possible.

sourcrates

The interest rate on a guarentor loan is around the 40% mark and upwards, dependant on company.

Its much cheaper for you to do it for him, assuming your credit is reasonable, he would not want a guarentor loan anywhere near his credit file to be honest, as they are as toxic as payday loans to the rest of the credit industry.

bravotp

Thank you all for the valuable advice. Sorry for the delay in reply, I had to have a long lie down following 'Sourcrates' information on the interest rates that would be applicable on a guarentor loan. WOW!

We will go back to the drawing board but I will definately be helping Callum out rather than him trying to be independent, although it is a good quality. He will continue to build his own credit as per ZX81 (love the name) suggests and he'll get there with those building blocks. The courses are basic entry requirements and so employer expect them to have this proir to begining this type of work and then maybe help out with any training required once longevity is demonstrated. And to be honest, this job is probably only going to be a stop gap until he can overcome the issues he has and join the Royal Marines.

Many thanks again for all your views and replies, it has certainly pointed us in the righ direction.