lily_evie
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No it is not illegal at all. you get the credit and you choose what you want to do with it. The only thing is it is in your name and if they don't make the payments the owness will be on you - FACT.
Think very, very carefully bout doing this no matter how much you want to help someone. I presume that the person who you want to do this for has bad credit and can't get finance themselves? if this is the case is this the type of person you can 100% trust with money?
Obviously the decision is yours but be prepared to pay off the debt yourself should things go sour.
Hope this helps x |
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Brian V
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,seem a bit iffy to me if they can't get a loan in the first place, they obviously cant afford it, so you are taking a bit of a risk |
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champagne
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No.It would be very silly though.If the other person didnt keep up the repayments,you would be liable for them |
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JAMES L
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HEY YOU SHOULD THINK BEFORE YOU DO THIS
1 WHY ARE THEY IN DEBT
2 CAN THEY AFFORD TO MAKE THE PAYMENT
3 WHY CAN THEY NOT GET A LOAN
4 IF THEY MISS THE PAYMENT CAN YOU AFFORD TO MAKE THE PAYMENT
5 IF THE LOAN IS IN YOUR NAME WHAT CAN YOU DO IF THEY SAY I AM NOT PAYING IT
6 DO YOU KNOW THIS PERSON SO WELL THAT YOU ARE WILLING TO PUT YOUR CREDIT HISTORY / RATEING ON THE LINE
7 YOU COULD END UP IN DEBT YOUR-SELF OVER THIS |
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laura21804
 |
no i dont think so, but is always a bit risky because if they default its you that gets bad credit history.
At the end of the day if you get a loan in your name its up to you what you do with the money, the bank dont care as long as they get your cash! |
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smiling_freds_biz_info
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It would be good to have an agreement in place to ensure you are the recognized creditor.
Ask yourself why this would be to your advantage. Careful if decision is motivated by anything but honourable thoughts. |
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donkeyoftheday
|
Legally, you can take out a loan and use that money to pay off the debt, but you would be the one required to make the payment, not the person that is being bailed out.
This would put you at risk because if the other person does not mail the check, your credit is at risk.
Also, doing this would not help their creidt one bit since they are not on the loan.
But to get to the fact of the mater, it is legal to take a loan to pay off someone's debt, but you would be the one asked to make the payment, they would just be paying you to make the payment |
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Eugene
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When you take a loan, it is your business alone what you are going to do with the money. If you are paying off someone Else's debts, there is nothing illegal with that. You can burn the money, give it away, gamble it or pay other peoples debts, that's your business alone.
To make them pay back, well you must either be very starry eyed and a risk junky.
There is no need to tell you you should not do it, that goes without saying that it's a bad idea, so I wish you good luck if you still dare. |
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josh m
|
No, it's not illegal, but since the loan would be in your name, you're taking a huge risk if they refuse/can't make the payments. I would never do it myself, with the rare exception that a CLOSE family member needed help....and even then, I'd have to try to determine whether or not they could even afford to make the payments. You also have to ask yourself, "if this person has so much debt, can I expect them to be responsible enough to make the loan payments?". I'd say no. |
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dawn18415
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If they can't pay off thier own debt's how are they going to make repayments to you? Never lend friends money if you want to stay friends with them. |
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nosdda
 |
This can be a dodgy arrangement, and you would have no come back if the person didn't make the payments. No matter how well you know someone, there is always a chance you could fall out, and you would be responsible fro the payments then. |
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pattibcacl
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Yes you can but if that person don,t pay you then your stuck paying the bank back I would a lawyer to draw up a agreement up between two of you I wish you all the best |
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starryeyednmo
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Not without a written contract stating if you take out this loan then they will repay...terms, etc. If you do it without their knowledge you have signed for the loan and are responsible. Even with the loan under you name, if they do not make the payments they will come after you and it will affect your credit.
This this through!!
Good luck! |
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suerye
|
If someone takes out a loan, the agree ment is between the lender and the borrower. If you are thinking of borrowing money to lend to someone else, then see a solictor to draw up a formal loan agreement with them to pay it back to you. Even then, if they default and have no assets, how are you going to recoup the money? |
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lisa s
 |
In addition to the other posters' great advice about what will happen if the person you borrow for does not pay....
Be sure to think about what it will do to your friendship/relationship
THIS WILL DESTROY IT
imagine all the angry feelings you will have against this person WHEN they dont pay
(when not if, because if they were going to pay, they would have paid off the original creditor in the first place...please make up a reason and say no to this risky proposition) |
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david
 |
absolutely...provided that you pay back the loan you took however its payment arranged. |
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Mariposa
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Yes. If you have a contract and list the specifics, it doesn't matter what the loan is for. |
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edgarl
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It is cheapest to get a settlement figure and pay the lot off. |
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FRANK W
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no problem but you are the one they come after if payments are not made ! |
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janemull
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it would be legal for you to take out loan for any reason, but if you expect someone else to make payments and they dont then you woul be liable and it would you that would be taken to court for nonpayment if the other person did not repay loan. |
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