Hi Andy,

As you will be the principle on the Loan agreement, most of the credit rating will go on you - although it obviously does strengethen things if your parents are guarantors.

Unfortunately the loans companies are right on this one - if you want to benefit from a decent rate (sub 15% APR), the agreement will have to be in the name of somebody with godd or half decent credit. In your case, your parents.

Sorry

Tim

In am 25 years old and I have recently got myself in a mess with money. I owe a total of £7000 on credit cards, overdrafts etc. charging very high interest and I have damaged my credit history through not keeping up re-payments. The charges I recieve are astronomical.

I earn £25k per year, and can afford to repay a single monthly sum of over £200. However, due to my behaviour over the last 12 months my credit rating is very poor, and nobody will lend me anything to consolidate my debt accept for at extremely high interest rates (30% APR).

My parents own a home and have fully paid their mortgage. They have an exceptionally good credit rating which i wanted to use to guarentee my loan, and hopefully get a better interest rate. My parents have agreed to this but I am still having troubles. I wish to take out a loan in MY NAME, but lending companies say the only option is for my parents to take out a loan and for me to pay them.

Is there no way of using my parents as a guarantor on a personal loan in my name?