When you’re young, have just come out of a bad patch with money, or haven’t had a chance to build anything with the financial side of your life, it can be impossible to access some of the services on the market.
Banks and other businesses which are based on tender will only trust those with a proven track record. Of course, though, there are usually ways around this sort of complication, and this post is going to be exploring a few of the options you have before you. Using someone else’s clean slate could solve this problem once and for all.
The Problem
Before looking at the tools you have to help you, it’s first worth considering the wide range of financial services which can be affected by your record. Along with this, there are several websites and other resources on the market which can give you further support with this work, and it will be worth researching them as you improve your money more and more.
- Insurance: Companies selling insurance don’t like to waste their time with people who are unlikely to pay throughout their contracts. Along with this, when you don’t have much on your financial record, things like your credit rating can make it cost you more. This makes it very hard for new drivers to get themselves on the road, with most people taking on this skill when they are young.
- Mortgages: When you want to buy your first home, it’s unlikely that you’ll have the money to buy it outright, instead look for a mortgage to cover the money you don’t have. After years of reckless lending, though, banks are very cautious with this sort of loan, nowadays. If you have a bad credit rating, existing debt, or any other negative finances, it could impact your chances of getting a good deal. Look for a subprime mortgage which is a specialist type mortgage that enables borrowers with a bad credit history to be able to purchase homes. Be aware that interest rates are a lot higher.
- Other Loans: There are a lot of other loans available on the market, and most of them will take a similar stance to your mortgage broker. This can make it hard to get things as simple as credit cards, with each rejection making your financial status worse, and strict rules being put in place to keep people from over-borrowing. It’s hard to borrow money when you can’t get a company like this to trust you.
- Contracts: Unlike a loan, when you get a contract, you won’t be borrowing money. Instead, you’re promising to pay a certain amount over time. If the service provider doesn’t think you’re likely to be able to afford the contract, though, they might not be willing to give it to you. This happens with things like phones, internet connections, and even some luxury utilities.
- Prices: Companies giving out money to those in need don’t tend to do it out of the kindness of their hearts. Instead, they will usually charge some sort of interest on the money, forcing those borrowing it to pay back more than they take. If you have a poor history, you could find yourself being given higher percentages to cover, making the whole thing cost even more.
- Normal Banking: It can be surprising just how much of your normal banking can be impacted by your finances. A lot of banks have entire accounts which are only available to those with a certain status, and you won’t be able to get a large overdraft if they don’t think you’ll be good with it. This can make it feel impossible to move forward with your money.
The People
With an idea of the problems you might face in mind, you will be ready to start considering the people who can support you through this. It doesn’t matter if your own situation is hard to handle, you will almost certainly have someone in your life who can give you a helping hand, and it doesn’t have to cost them anything in the process. Below, you can find some examples of the best folks to call upon when you need to be rescued from your money.
- The Parents: While they might not be looking after you anymore, most parents will still be happy to care for their children long into their adult life. This makes them a great place to go when you’re starting your hunt for help. Of course, you have to consider their finances in the process, but this will be the easiest approach to take, and you will be able to talk to them about anything.
- The Partner: When you’re in a long-term relationship with someone, it is very normal to start sharing the same finances. This can make it easier to afford larger purchases, will give you both more security, and will also help you to nail some of the harder parts of money. You have to be careful, though, as you could be hurting their money in the process.
- The Boss: For some people, the idea of asking their employer for financial support will seem silly. Others, though, might have a good rapport with the people they work for and will trust them to react reasonably to this sort of request. If you’re able to get support from a body like this, you will often get a lot more than you bargained for, and this makes it a great route to go down. Being in control of your income makes it easy for them to be confident in you.
- The Friends: Finally, as the last people whose status can be used to bolster your own, it’s time to think about your friends. Most people will have a couple of others in their life who they can rely on with just about anything. This sort of relationship is usually much greater than money, and it could be surprising to see just how many of your friends are willing to help you.
The Tools
Even with all of this in mind, though, how exactly can you start using these people to help your own finances? Of course, you won’t be doing anything without their permission and will need to discuss anything with them before starting. Aside from that, a little bit of research will also be valuable, giving you the knowledge you need to navigate the financial minefield without getting caught up in trouble.
- The Bypass: When you have people around you in a much better financial position, you may be able to use them to bypass financial services entirely. Loans from friends are a great example of this, with those around you having the chance to lend you money, instead of leaving you to go to the bank. Of course, though, you can’t assume that people will do this for you, and will have to ask.
- The Collateral: You might not always have the option to bypass financial services, though, and might have to look for some other ways to get support. There are loads of guarantor loans online, with this sort of tool enabling you to use someone else’s status as collateral on your loan. A lot of trust will be needed here, as failed payments will fall on the person helping you, and this won’t be fair when they are supporting you.
- The Purchase: Buying your services is rarely something you have to do on your own, with a lot of businesses offering options which provide for more than one person. Shared bank accounts, insurance policies, and loads of other examples have started to pop up in recent years, making it easier than ever to tie your status to someone else’s. This is particularly useful when you have a partner.
- The Web: In the modern world, it’s becoming more and more common for people to help strangers. With the internet connecting everyone like never before, it’s easy to find those in need of support, giving those with a charitable spirit an outlet. Of course, you don’t want to go around the web begging for money. But, you can ask for advice, and may even find people willing to use their status to make your life easier.
- The Reference: In some cases, you will find people with a strong enough financial status that even their word will be enough to give you the help you need. For example, if your bank manager or boss were to write a letter vouching for your money management skills, you could find yourself having a much easier time applying for services. Of course, a lot of modern companies won’t rely on this sort of option, but it is still worth considering when you’re in a tight spot.
With all of this in mind, you should be feeling ready to take on your finances like never before. As time goes on, more and more ways for people to help each other with their finances are springing up, making it easier for you to navigate this part of life. Of course, while this field is becoming more diverse, you still have to work to manage your money, as someone else’s status will never be a way out of serious trouble. Instead, you will need to avoid getting there in the first place.
