Below is a story written by Laura Susstance about a couple that struggles with one partner’s bad credit. This is a great story which highlights the notion that before we can achieve our dreams (marriage, running a small business) we have may have to take time, be dedicated, and make the right choices while following a good financial path. Following this path can lead you to your dreams like the couple in this story. This is the first part in a mini series on the credit score.
Peter and Sarah met in 2011 after following very different life paths. Sarah has always been bright and therefore it was only natural for her to pursue a university degree after all A’s in science and math. She was accepted into Duke University where she used a combination of student loans and financial assistance from her parents, to study medicine and finally qualify as a Doctor in 2010.
Peter on the other hand tried college, twice. He started on a sports science course and when he failed his first year, determined that the reason for this was his lack of passion for the subject. He tried a second time, enrolling in a music production course. However once again, he failed to pass his first year exams. The bright lights of being in a new city proved too much of a temptation for Peter and he found himself using student loans, overdrafts and credit cards to fund his party lifestyle which did not have the insurance of a good career at the end of it. Therefore when their paths crossed five years later through mutual friends, Peter and Sarah were a meeting of minds but not of bank balances.
Sarah wanted to help Peter steer his life in the right direction therefore she suggested that they move in together and he could continue to work towards his dream of running his own coffee shop while they saved for this venture, as well as for a deposit for their first home. The best way to facilitate this was for them to open a joint bank account which would be used to pay mutual bills and also deposit savings into a mutual nest egg.
After approaching four of the biggest banks on the high street, a pattern was emerging. Peters irresponsible past including several credit cards with missed repayments, abusing his unauthorized overdraft and accessing unpaid personal loans, meant that his credit rating was poor and he was not a viable person to lend money too. This is in contrast to Sarah whose credit rating was perfect as she has never missed a bank payment and only loans were her student loan. Not only did this mean that they were unable to get a joint bank account together, but their future was in jeopardy because the implications of this were that they would either not be qualified for a joint mortgage, or small business loan, but if any lender decided to take pity on them, they would be charged an exceptional amount of interest.
Upset at the outcome, Sarah because her sensible background was being penalized by the irresponsible actions of her loved one, Peter because he saw how unfair it was on Sarah and also his desire to start their life journey as equals, Peter decided on a two year plan. He would consolidate all of his debts and work two jobs to clear all of his debts within the next two years.
Two years later, Peter and Sarah were in a much better financial position. Peter’s credit rating had improved because he had paid off all of his loans apart from his student loans and they were finally accepted for a joint bank account. Peter was also awarded a small business loan to open up his coffee shop and he and Sarah were able to formulate a new two year plan, to save for a deposit on their first family home. Oh, and Sarah was awarded for her patience when Peter got down on one knee on her 30th birthday and, with the extra money that he had saved, presented her with a beautiful antique diamond ring and asked her to be his wife.
Laura Susstance is a content writer from England. As well as actively contributing to guest blog posts she also writes on her own website: http://fastpaydayloansreview.com