Want to borrow £4k... under 18.

[Michael]

What are my options?

I want to borrow £4000 this month, which I can pay back quite quickly in monthly installments of at least £500... so could have it paid back in 8 months at the very longest.

However, I'm only 17 at the moment, so if I went through a proper regulated channel I assume I will need a guarantor to get any kind of loan.

Does a guarantor need a good credit rating, or just need to be working?

Also, are there any other options? Where should I be looking? I don't want to end up paying £5k back for such a short term loan.

It's fairly urgent so waiting till i'm 18 will be too late, so I don't really want to consider that as an option.

[Howard]

Ask your parents?

[TiG]

Can you get a loan at under 18?...

- not certain but I thought the consumer credit act changed to not allow under 18's to get a loan?.

TiG

[Michael]

My dad's just invested in his own Taxi and had to Mortgage his house to do so, so he's potless at the moment, and my mum isn't in the best of financial situations so that's not really an option.

Regarding getting a loan at under 18... Well as far as i'm told it's no problem for me to have a gurantor and get finance on what I want to buy, i just figure it could be a cheaper option going elsewhere... hence asking here.

[GFiSH]

If you can get a loan I can't see you having to pay too much back in the end. I got a £5000 loan over 3 years and am only paying back an extra £500 which I don't think is that bad. Just looked on Abbey.com and they'll do £4000 over a year for £359.09 a month, works out t £4309.08.

Your best bet is to either phone them up or visit them in the high street and tell them you're circumstances. If you're able to prove you'll have sufficient money to pay it back then I wouldn't have thought they'd be too picky about the status of a gaurantor. All you can do is try.

[schmunk]

If you can get a loan I can't see you having to pay too much back in the end. I got a £5000 loan over 3 years and am only paying back an extra £500 which I don't think is that bad. Just looked on Abbey.com and they'll do £4000 over a year for £359.09 a month, works out t £4309.08.

Your best bet is to either phone them up or visit them in the high street and tell them you're circumstances. If you're able to prove you'll have sufficient money to pay it back then I wouldn't have thought they'd be too picky about the status of a gaurantor. All you can do is try.

At 17 you are a very big risk to lenders - based on their prior experiences of loaning money to the full range of people.

Most high street banks will not loan you anything, and if they do you won't be getting the 5.9% headline rate - oh no, they'll ask 11.9% or 15.9% or more...


If you're working, you could see if your employer will pay you something in advance, but again, as you are only 17 it is fairly unlikely they'll let you have very much.

[Michael]

Yeah i'm working. I share an office with the M.D... He would have probably helped me out but he's just bought a house (Finalised last Friday), so his money is drained at the moment.

If I can't find a better option I'll just go with the Finance deal the dealership have offered me.

Will phone my bank first and such.

[wilsonian]

Why would u need £4k and then pay it off quickly over 8 months - why not just save up? saves paying intrest!

[Spud1]

take a look here:

http://www.moneysupermarket.com/Loans/Default.asp

might give you a bit of help

also:

http://www.moneysavingexpert.com/cgi...99314935,42333,

[schmunk]

Why would u need £4k and then pay it off quickly over 8 months - why not just save up? saves paying intrest!

I think he wants a car (or bike perhaps) now, not in a few months.

[Michael]

I want a bike now, for the summer.

I'm planning on getting an RS125 new from a dealer, they seem to hold their value well enough and I'd rather have something nice and new than one that has been caned all over the place by some chav.

It seems my best deal is the finance deal the dealership are offering me... Flat 7%, insurance cheaper than any quote i've had elsewhere... all I need is a parent as a guarantor... guess i'll have to go ask nicely.

[TiG]

I'm assuming you checked the finance deal is not over 18 too?.

TiG

[Michael]

Yes, he knows my age and has told me that as long as I have a guarantor it's fine.

[TiG]

And you know if you default then your parent will have to pay?.

TiG

[schmunk]

It seems my best deal is the finance deal the dealership are offering me... Flat 7%, insurance cheaper than any quote i've had elsewhere... all I need is a parent as a guarantor... guess i'll have to go ask nicely.

TBH, I'd be surprised if you'll do better than this anywhere. Even the most credit-worthy will only be able to borrow at about 5.9% or so (unless they get a 0% credit card, of course )

[Spud1]

don't forget that a flat rate and APR are different - a rough guide is to double the flate rate to get your APR..so your looking at around 14% APR there really...