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Can we stand as guarantors for our son in law who has a bad credit rating to buy a new car?

He needs to change his car but cant get a loan as he has a bad credit rating,we have a good credit rating but my husband feels it may affect our chances of getting a loan.Is there any way we could help without actually borrowing money in our name?Where we would be the guarantor to enable him to get credit for a new car?He really is desperate as he needs a reliable car for work.
If we took a loan out for him in our name and then needed a loan say for ourselves at a later date is there a limit to how much one person can loan?We do trust him,he`s such a hard working chap and we know due to a few late payments with a credit card is the reason for his bad credit rating

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13 Responses to Can we stand as guarantors for our son in law who has a bad credit rating to buy a new car?

  1. Brian G

    Anyone can co-sign for anyone else if they want to put themselves at risk. On your credit report, it will appear the same as if you took the loan yourself. There is no way around it if you co-sign.

  2. Jsy grl

    as guarantors u r not actually borrowing money u r guaranteeing that u will repay the debt should ur son in law fail to do so. This will not affect ur credit rating unless u also default on the debt. It all just comes down to how much u trust him.

  3. Knownow't

    I’m sure you can, but I wouldn’t risk your good credit rating…if he fails to pay and you are the guarantor then think of the family consequences…..If I were you I would let him get his own credit…they do have companies that deal with bad risk customers, they just pay a lot of interest, which serves them right…..

  4. Clive

    It would probably be cheaper if you took on the finance yourselves and recovered the repayments from your son.

  5. Lisa T

    if he has a bad credit rating then the whole loan will have to go in someone elses name and they will be liable for the complete loan. If your son-inlaw can still get a loan but requires a guarantor then you can be it, but you will have to make the payments if he doesn’t, it depends how reliable he is and if you can afford to make the payments if he can’t, I think its down to the lenders to say if they will allow him to have a loan with a guarantor

  6. sandy s

    If your credit rating is good, you can borrow money for anything, and don’t have to divulge who the money is for.
    I’d be very careful if I were you. Why has he got a bad rating?
    Are you prepared to pay the loan repayments if he defaults?

  7. norag

    you can co-sign for him which is being a guarantor
    it also means if he misses a payment that ur liable for it, so make sure u take that into consideration when they r telling him what the payment is

  8. spifiman1

    If your Son in law has bad credit, the only way you would be able to help him is to be co-signers for him, or to put the car in your names and make him the co-signer. Either way you are on the hook.

    Unless you can get your own bank to do it and not report to the credit bureaus.

  9. Winnie

    Yes, if the loan company will accept. You will be liable, of course, for any “falling behind” of repayments.

  10. juicy

    you can but i think you,d be nuts to do it. the only way he is going to learn how to manage his debt is if he has to live with the consequences. i am speaking from experience. i too have a bad credit rating and just kept spending because i always knew there would be someone there to ease the fall but i am getting better, i am far from perfect, but a lot better than i was. help him in another way. maybe pay to have his car serviced and repaired or pay a few hundred pounds for something a bit more reliable, but if he refuses it may be he just want,s something a wee bit more up to date. if you do help him out make sure it gets paid back even if it,s years later.

  11. justgetitright

    You can be a guarantor (co-sign) for your son in-law but
    this debt will still show up on your own credit report and is
    an obligation because if he does not pay, you will have
    to pay. Because of the liability there may be a reduction
    of your FICO score

    The impact of you and your husband being able to obtain
    a future loan is dependent upon how high your FICO score is
    and your income to debt ratio. Most banks will give you a
    loan regardless of the income to debt ratio if your FICO
    score is above 700

    Check the link below, there are some handy FICO score
    PDF files you can download and if you pay to get your
    credit history and FICO scores, there is a page that
    you can get to that will allow you to play what if’s and see
    what the actual impact is, but they are pretty minor

    How do I know this, my FICO is over 700, I have 5 kids and
    5 cars financed or co-signed in my name

  12. STEVEN F

    Just remember that if no one will loan him the money without a cosigner, the co-signer WILL end up paying the loan. The best way to help is assisting him to find a CHEAP car he does not need a loan to buy. Giving or loaning money to someone that has not learned to control their finances has been compared to “giving a drunk a drink”. In the long run, it does more harm than good.

    By the way, YOU can’t afford a NEW car either, unless you have CASH lying around. If you did, you would not be asking this question.

  13. brian t

    At your own BIG risk, bad credit rating due to a few late payments, well thats what he is telling you! So it must be true!