Can i take a loan out for a friend in need?

Question

Like take a loan out specifically for him, but instead of me getting billed monthly and me getting letters at home linking me to that loan. All that goes to him. He gets the bills on his bank account, and he gets all the letters to his house. I've been accepted for a loan for the amount he needs, but he hasn't. he has bad credit and needs a guarantor to be able to continue. I know i could be his guarantor but i'm not over 25 yet and not a homeowner so i don't qualify the company's criteria. Also he doesn't have much time left and cannot rely on anyone else atm except me. I'm well aware of the risks involved, I just want this question answered.

Answer 1

definitely not.



You're making a big mistake if you let this situation pull you into it. And YOU will owe and over a long time (because of interest). What you need to know is that you cann't be responsible for someone else (unless they are your own kid and for 18 years), each person needs to be responsible for themself.

This guy isn't going to pay you back (because of the situation he's now in and maybe can't get work for a couple of years) so you're stuck, but have nothing to show for the money you're spending.

If you are under 25 then this is a foolish thing for you to do.



What exactly does "not have much time left" mean? There's always a way to solve things. Are you saying he is losing his apartment? Well he can go home and live with family, he would have a better chance doing that.

You never said you are over 18 and will make a written contract with this guy as to how he will pay you monthly and if he doesn't then what you will do to collect that money from him (like take him to court and place a judgment and hurt him worse than he would be right now).

He can go to the county or to a church, get some work, or work in someone's home if he has those qualifications (getting his rent free and using food stamps to buy his food).

You are making yourself feel important by saying he can only rely on you, but that's not the case at all. The guy is in a mess and is irresponsible and if you take away that reason to be responsible then he will never learn to be responsible. let him learn for himself.



Being a co-signor well you will get stuck with the repayment of the loan anyway because he's not going to pay it (he's unable to pay it). So why start a loan when it's not going to work out on either side.

Answer 2

Please, please, DO NOT DO IT!!!!!!!! It can take years to pay off loans, who knows if you will still be friends at that point - I married someone who was still paying off a LOT of money that was loand for an ex. Now as the new Wife its my debt. Not good. Not happy. And we are now living broke while the person who borrowed the money is living rich an not paying a penny. Please do not do it!!!!!



Now, if after all that (and everyone else's similar responses) you insist on doing it, PLEASE get a written agreement between the two of you, stating they owe you the money, and all insist and fees involved. If you can do get a lawyer to look at it. Get it notarized. And then, prey that they won't f'ck you over. It still go very wrong. Keep a good written record of every payment made. Tape record any telephone calls regarding the loan where your friend agrees they owe you this money. This is so risky and you really are risking your future and your credit doing this.



Instead, I would suggest you tell your friend to read the post below I made on another question. Good luck, and PLEASE DONT DO IT :)



_________



For your friend to read:



Best three that will approve those with bad debt, and are direct companies (so you don't have hundreds of companies contacting you just to say 'no') are:



Spring Leaf

Republican Finance

Argon Loans



Do note that all three charge high interest, obviously as you have no/bad credit and no-one else will touch you, but I've found they are all quite fair, as in, if you pay them, they leave you alone and they are the best I could find if you have very poor credit.



However - before even going here, I suggest selling what you can (check out eBay), getting a part-time job, calling up your electric/gas/TV etc and seeing if you can get a better deal to save money, and, very importantly, doing a proper look at your money for the next 6 months to work out where you can save money. If things are really bad, look into bankruptcy, seriously, take a look at it before just dismissing it.



Also - Please - STAY AWAY FROM PAYDAY LOANS!!!



Good Luck, and remember to keep it real, if you can't afford it, don't do it.

Answer 3

The friend can take out the loan, with you as co-signer. Then the bills will go to his address. But your info will also be linked, so the moment he's late on a payment, it will come out of your account. That's actually the likely outcome, possibly from the very first payment, until you have paid off the entire loan.



If you have the money, and you judge your friendship good enough, just give him the money as a gift. I'm guessing that this is not the case, though, since you're asking this question.

Answer 4

No. The person responsible for paying off the loan is the person who must be vetted and checked. You can certainly take out the loan yourself and YOU are responsible for paying it off if you think your friend in need may actually pay you back the money...but there is a reason for the old adage, "never a borrower nor a lender be." That's a great way to lose a friendship when they fail to pay you back and you're stuck with the note...

Answer 5

I had a friend come ask me to go sign for him for one of those pay day loans, I told him he must be out of his damn mind & at that time no one knew just how big of a problem he had, but dont try to be a "good friend" by helping him get a loan, if he gets mad.. Then oh well.

Answer 6

No you can't. If you take out the loan, then everything associated with it is yours and comes to you.

Answer 7

If he "does not have much time left" see if he can borrow against a life insurance policy, or at least make you the benefactor (or a primary debtor that his estate has to pay). If he has no real resources, do not borrow money on his behalf, unless you want to consider it a gift, and be thankful for what little you get repaid.

Answer 8

this will never be approved. and for you to go out on a limb this way is a very bad financial situation for you, you;r never going to see repayment from him for the loan.

Answer 9

No. You would be responsible also. They have bad credit which tells you they don't pay their bills.

Answer 10

This is not the right decision to take this step. Further, it will create a financial problem for you.