Does Being In Debt Show Bad Character?

No one likes being in debt, it just is not a good feeling.

Many describe it as feeling like a weight is on you, bearing down on you all the time.

There can be the constant worry as to if you will receive collection calls, text messages, emails, letters in the post, and the worry what if someone finds out???

There can be a stigma attached to being in debt, even if you are making payments on time. You know you owe money, no one else does except for those you owe.

It can be a very stressful time.

Financial stress can cause illnesses, and also breakup relationships.

But does being in debt show bad character???

Debt = Bad Character

The answer to this equation is no, being in debt does not show bad character.

It may show poor personal financial skills, it may show misuse of credit, and it may show a lot of things, but one’s character is not on trail just by being in debt.

However, in some instances, there are those that may feel the opposite.

Employers: There are certain jobs and some employers who use credit history and credit scoring as a part of the hiring process for employees.

Some jobs such as those that require handling cash, working in a bank, dealing with financial transactions, one can understand why a perspective employer may look at a potential employees credit history as a part of the hiring process.

However, there are other jobs, such as those with security clearances, and other high level requirements, where a credit check may be done as well.

This can be viewed as a character reference by some, and is there really a link between a good employee and someone who may struggle to pay their bills?

Some employers say and feel yes, and someone with a credit history that is less sterling than another person applying for the same job, may not et that job.

Home Office: When applying for many Visa’s to enter and stay in the UK, there are some questions related to personal finances, these are usually limited to being able to show you have a job, are working and supporting oneself.

For some spouse Visa’s, the sponsor may need to show they are able to support their new spouse they wish to have enter the UK.

If you want to receive citizenship in the UK, a part of the application is a “good character requirememts”, one that looks at your character.

This clause is broken down into two areas, one is mental health, are you of sound mind, and the other is of a more criminal nature, and also eludes to some “financial soundness”; such as CCJ’s, unpaid debts, owing taxes, etc.

So there is a possibility that being in debt could be seen as of not being of good character.

In researching this, it was found that if a person who is in debt, and may have judgments against them, would still pass the good character and financial soundness test, if they were dealing with their debts.

I they were in a debt management plan, or some other form of repayment, it is then thought that are dealing with the issue, which is of good character.

Being in debt is not a character trait, and owing money, being in debt, and even being insolvent, is not due to bad character. It can be down to bad luck, poor money management, even misuse of credit, but it is a hard line to cross to show being in debt is of bad character.

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”” data-mce-href=””>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”” data-mce-href=””>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”” data-mce-href=””>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.