stevie_b Posted August 14, 2008 Share Posted August 14, 2008 I've been asked to be a loan guarantor for someone (let's call him Fred), and I'm unsure about it. 1) What does it mean for my credit record if Fred defaults on any payments? I know I'll be chased for said payments, but is it a black mark in my record for the fact they had to chase anyone? 2) Does it establish a financial link (in the eyes of credit reference agencies, etc) between myself and Fred? Fred doesn't have a good credit history, and I'm hoping to buy a new house in the not-too-distant future, so I want to keep my squeaky-clean record. Quote Link to comment Share on other sites More sharing options...
Jurgen-Jm-Imports Posted August 14, 2008 Share Posted August 14, 2008 dont do it Quote Link to comment Share on other sites More sharing options...
Jake Posted August 14, 2008 Share Posted August 14, 2008 1) What does it mean for my credit record if Fred defaults on any payments? I know I'll be chased for said payments, but is it a black mark in my record for the fact they had to chase anyone?If (when) Fred defaults on the repayments it won't be a black against you - provided that you then take over the repayments and clear the debt in full. The loan company or their agents won't even bother chasing Fred too hard when he starts missing payments, they'll come to you. 2) Does it establish a financial link (in the eyes of credit reference agencies, etc) between myself and Fred? Fred doesn't have a good credit history, and I'm hoping to buy a new house in the not-too-distant future, so I want to keep my squeaky-clean record.The only link is that you have agreed to take on Fred's debt if/when he doesn't pay it. His loan becomes your loan, and obviously your credit rating will suffer if you don't repay (what has now become) your loan. If you do pay it off in full everyone is happy, especially Fred. Quote Link to comment Share on other sites More sharing options...
broomie Posted August 14, 2008 Share Posted August 14, 2008 Quote Link to comment Share on other sites More sharing options...
ivan Posted August 14, 2008 Share Posted August 14, 2008 Don't do it. Quote Link to comment Share on other sites More sharing options...
penguin Posted August 14, 2008 Share Posted August 14, 2008 run run run! Quote Link to comment Share on other sites More sharing options...
dibbleyuk Posted August 14, 2008 Share Posted August 14, 2008 I know my mums friend done it for her son. But for people other than your own children i wouldnt do it mate really not worth it. Quote Link to comment Share on other sites More sharing options...
stevie_b Posted August 14, 2008 Author Share Posted August 14, 2008 Thanks for the advice guys. I don't think I'll do it. I don't like mucking about with money with friends or family, it can go wrong. Quote Link to comment Share on other sites More sharing options...
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