Single Mum with Bad Credit History Applies for Guarantor Loan

Single Mum with Bad Credit History Applies for Guarantor Loan

In our recent series we have been taking a look through a few of our customer’s situations and their reasons for choosing George Banco to provide an unsecured personal loan or a guarantor loan for their personal financial needs. In this blog we focus on Tilly, a single mum with a well-paid part time job, a little girl to support and a bad credit history due to discrepancies on previous credit arrangements.

Tilly had, like many people had a fun-filled youth with very little in the way of serious responsibility. She had made it through University and gained a good education, although Tilly was not the best with her personal finances. There had been a few occasions where she had gone over her agreed overdraft on her current account, and a number of other incidents whereby she had defaulted on credit card repayments.

The repercussions of her past personal financial mismanagement had not been a major issue at this point in her life, as she had lived with her long-term partner who had a good job and an even better credit rating. Sadly, a year after her daughter was born Tilly and her partner broke up, leaving Tilly, for the first time in her adult life, financially responsible for both herself and her baby daughter.

As is the way with emergency financial matters, they do not happen at a convenient time for most people and Tilly had a number of smaller debts that she was struggling to repay at the agreed times. Slowly she was defaulting on a number of them and couldn’t see a way out of the spiralling build-up of debt.

Tilly spoke to her parents in a panic and explained the situation. Tilly’s mum had recently seen an advert for unsecured personal loans from George Banco on the internet and suggested Tilly put in an application.

They sat down together and after a few minutes had completed the simple online application for an unsecured personal loan. Unfortunately for Tilly, despite meeting the affordability criteria, the application was turned down on the grounds of her bad credit history. She could, however still make an application for a guarantor loan provided she could find someone to act as a guarantor.

Tilly immediately asked her mum whether she and her Dad would be her guarantors. Tilly’s mum said she would consider it but needed to wait for Tilly’s dad to return from work before she could decide.

Later that afternoon Tilly’s father returned home from work and they all had a heart felt discussion about affordability and future responsibilities. Thankfully for Tilly her parents agreed to act as guarantor for the loan and 48hrs later the loan was in the guarantor’s account so it could then be transferred to Tilly.

Tilly paid off her outstanding debtors removing any immediate concerns and has since been paying back the loan at the agreed times. She has one year to go before she will have paid off the full loan amount including interest but is well on her way to financial stability for the first time in her life.

If you have been in a similar situation and feel a George Banco loan might be right for your personal financial situation then please click on the ‘Get Started’ button above and take a few minutes to make your online application for an unsecured personal loan, or more specifically a guarantor loan.