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AIBU or are Nationwide? Why won't they lend DS 18 5k?

(72 Posts)
phonemelater Thu 06-Dec-12 20:04:54

DS is 18 and has been in his job for 3 months. He earns more than me £17k and his position is secure.

He lives at home with me and his only interest is sport. He wants to buy a very expensive piece of sports equipment and made a loan request to Nationwide.

He was declined as his credit check showed he didn't meet the criteria. He's 18 and has no credit history, which I presume is the problem. I'd like him to save for the equipment but he wants it now and I think fair enough, its his money. Loan sharks Money lending sites will lend him the money, but I've steered him away from these towards his bank, and now they've said 'no'. Are Nationwide BU? Who might lend to DS?

AnyFuckerForAMincePie Thu 06-Dec-12 20:19:16

oops, I meant YABU in my post, hope it was clear

bamboostalks Thu 06-Dec-12 20:20:22

You were rude there narked
No reputable lender is going to lend your son £5k for a depreciating piece of kit for a hobby. Just tell him to save.

ceeveebee Thu 06-Dec-12 20:22:45

Ah. Thread title looks like £18.5k
Anyway he should still save up, won't take him too long

Whoknowswhocares Thu 06-Dec-12 20:22:56

Yab massively unreasonable and should be thanking Nationwide for their sense in saving your son from a stupid mistake

I'm sorry but the attitude that 'its his money' is more than a bit ironic isn't it? It isn't his, it's the banks and quite rightly they dont want to lend it to an untried teenager with no security! Can't say I blame them

mercibucket Thu 06-Dec-12 20:23:21

Nationwide have always been cautious lenders. Coincidentally they did not get caught up in banking fiasco!
He could approach another lender but I would not be encouraging my 18 year old to take out a loan that size
You could offer to be a guarantor?

mercibucket Thu 06-Dec-12 20:23:21

Nationwide have always been cautious lenders. Coincidentally they did not get caught up in banking fiasco!
He could approach another lender but I would not be encouraging my 18 year old to take out a loan that size
You could offer to be a guarantor?

KrisMoose Thu 06-Dec-12 20:24:23

YABU

3 months is a fart on a shitting contest

You should be teaching him to save, not splurge

Nationwide would be vilified if they loaned a chunk of money to a teenager with 3months work experience.

AnyFuckerForAMincePie Thu 06-Dec-12 20:24:28

merci...ffs, can you stop your phone from double posting ? grin

phonemelater Thu 06-Dec-12 20:25:53

Hang on, hang on.

DS is 18. He wants to borrow 5k.

Apologies for the confusion blush

LRDtheFeministDude Thu 06-Dec-12 20:26:35

Sorry, narked, but 5k is still a heck of a lot. It is more than he's earned in the 3 months he's been working.

PickledInAPearTree Thu 06-Dec-12 20:27:57

I think he really should save for it. Only been in job three months, only 18.

He should be able to have it within a year.

I have debts hanging around my head which all started at that age. They snowball and loans get extended and added to and jobs get lost.

If he wants a credit rating he can get a credit card and use it once a month and always repay in full, contract phone etc.

KrisMoose Thu 06-Dec-12 20:28:15

My reply was for the correct sums, fwiw. Not confused here (for once)

Pooka Thu 06-Dec-12 20:29:47

He has only been working for 3 months.

Not even got past a year - could be dismissed summarily and have no recourse.

No credit rating.

I think you should be thanking the bank for their caution.

Pooka Thu 06-Dec-12 20:31:35

It's a hell of a debt to have at 18. Does be have any plans to move out in future? Would be much more financially viable if he didn't have debt repayments hanging over him.

Boggler Thu 06-Dec-12 20:33:22

Yabu No jobs secure after 3 months, he's still in his probationary period and can be sacked if he doesn't come up to scratch. I think taking out a loan at current interest rates would be foolhardy and something he would probably regret in a few months once the novelty of the new thing has worn off. If he's earning £17k he could save the £5k he needs in a few months as presumably living at home is saving him loads.

Fairylea Thu 06-Dec-12 20:34:18

Is any position secure these days?!?! Hmmm.

I don't think getting 5k into debt at 18 is a good idea at all. Could be a recipe for disaster .... and for a hobby!! Not even a house deposit!

If he is very very desperate he could look into a 0% credit card and apply for a higher credit limit... but I feel in 5 years time he might be looking at paying back 15k and not 5k if he carries on spending like this.

Spoken as someone who was once 26k in debt on accumulated crap. It's not good. At all.

lovestotravel Thu 06-Dec-12 20:35:36

I think the bank are right - he's not been working long and he's on a low wage. Getting into debt so young isn't a great idea, especially for something non- essential. I.e. if he 'needed' a car to get to work then I could maybe understand him wanting to bu now rather than save.

FredFredGeorge Thu 06-Dec-12 20:35:41

If you're so confident in his ability to repay - take out the loan yourself.

IfYouCanMoveItItsNotBroken Thu 06-Dec-12 20:36:20

How secure is his position? If you begin a job and are sacked in the first 2 years you can't bring an employer to tribunal unlessthey have been discriminatory - they can effectively sack you for nothing, so jobs aren't necessarily "secure". Maybe the bank are wary of this and the short amount of time he's been working. Having no credit means he has never proved that he can repay his debts so, again, get his credit rating going by taking phone contract etc. Maybe a credit union would lend him?

It's a slippery slope if he's only 3 months into a job, 18 and looking for a £5k loan? And they wonder why the economy is on its knees! What happens if it gets stolen or damaged and he's left paying 8k back for nothing! Debt is a horrible situation to be in, how can you guarantee it won't affect him? Only recently a boy killed himself because of an overdraft and I know I'm been in some pretty dark places because of our debt. Nationwide are actually being realistic. Teach him to save!

Alibabaandthe40nappies Thu 06-Dec-12 20:36:54

YABU

As others have said, it isn't his money!

It will take him 8-9 months to save up if he is careful.

KatzGold Thu 06-Dec-12 20:38:04

Nope, i think Nationwide have done the right thing, at 18 £5K of debt for a hobby item is crazy, plus how much on top would he end up paying in interest? He's best saving like stink for 18months and then buying it.

Dawndonna Thu 06-Dec-12 20:39:26

As the Mum of a bank manager, said bank manager says no way until he's been in the same employment for at least two years. He quite reasonably pointed out that there are not that many reliable jobs or 18 year olds.
He has suggested that he save and perhaps take a smaller loan when he has worked for a bit longer and saved for a bit longer.

StickEmWithThePointyEnd Thu 06-Dec-12 20:39:30

He has no credit history so they won't lend him anything. It's as simple as that really.

He needs a contract phone and a basic credit card to put normal spends on (with a direct debit to pay the full balance each month so no interest) to build his credit history up.

And while he is doing that he can save the 5k so no need for a loan anyway.

NumericalMum Thu 06-Dec-12 20:40:35

YABU! Could he buy it second hand, loan it or just save for a few months!
I hope I teach my DD to save before she is 18 and working...

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