Underage loan??

TheMilkyPirate

Hello,

Story is i'm 17 years old and am looking for finance for a car. I'd wait the year till i turn 18 but the problem is i need it for work and the girlfriend lives 25miles away..
I've tried a few online quote systems but to no avail as you must be 18. So my question is, Is there anywhere that would give a 17 year old finance or a loan to get the car.. i.e. credit union? bank? I've heard the credit union will if i have a garountour (sp.??) Is this true?
Oh and my annual income is 19,000 after tax.

Thanks.

BuffyBot

I think your local credit union is probably the best bet, but if an adult you know is well known to a local branch they *might* help out. However, I would assume that the credit union is the most likely route open to you. Go in and enquire and they'll tell you everything you need to know. Lending policies can differ slightly from one to another so only they can tell you for definite if that's an option for you

stepbar

Credit Union should help you no problem. However if your parents bank in (e.g BOI Wexford) the same branch as yourself then they might have a little more discresion because your parents have accounts there also.

TheMilkyPirate

Well my sister is a former employee in the credit union if that would help?

TheMilkyPirate

stepbar wrote:

Credit Union should help you no problem. However if your parents bank in (e.g BOI Wexford) the same branch as yourself then they might have a little more discresion because your parents have accounts there also.

Both me and my mother bank in Permanent tsb, What do you mean by they might have more discretion?

stepbar

There you go, problem solved. If you dont have a credit union a/c I would suggest you go open one in the next few days and put some money in it. Then follow up with an application a week or two later.

More discresion in the sense that your mother is known to PTSB and so she maybe able to go as a guarentor. Other banks might not give you a second look even if you had a guarentor

TheMilkyPirate

I have an account there ill throw my next two weeks wages in there and see how i get on then. Thanks very much for your help and if anyone else has any suggestions then there more than welcome.

Thanks.

vector

When it comes to loans it your ability to repay that matters, and that matters lesss if you have a monied guarantor

HOWEVER (sidebar) is it legal for a financial institution to extend credit to a person under 18?

TheMilkyPirate

That's what i was wondering, Is it actually legal?

Santa Claus

I think the question rather than is it legal to lend to a minor (under 18) is "can a bank recover a debt from a minor" ?
With this in mind, if your mum was guarantor then there shouldn't be a problem as she's saying she will take liability for the debt should you default on it !
I know any loans I got from the credit union when I was under 18 were for less than I had on deposit with them (I realise know that it would have made more sense to withdraw my savings but the CU told me it would help me build up a "financial profile")

pow wow

Strictly speaking I don't think they can enforce the contract against you if you're under 18 which is why most places won't do it.

I had a loan from my credit union when I was 17 though....they know my parents etc very well and it was only about 1,000 pounds at the time.

fintan

The bank / credit union will insist on your parents being a gurantor for the loan.

They will be more interested can your parents pay back the loan, than if you can.