topic Re: Loans to family and friend that report to credit in Personal Finance

Loans to family and friend that report to credit

fm92555 — Tue, 08 Feb 2022 18:24:54 GMT

My mother want to loan her grandson some money for a car. I know in the past there services that would let you put together a loan and they would process the paperwork as a more formal process and the payments would be made to that servicer, who would then forward the payments. I know Wells Fargo used to off a service like that 20 years ago.We all though prosper would be like that, but it didn't turn out that way.

Are there any out there now? All I can find are business loans. If there are ones that would help my nephew by reporting the payment to the credit bureau that would be nice.

Re: Loans to family and friend that report to credit

brk1971 — Wed, 09 Feb 2022 17:02:33 GMT

Does she want repaid over a period of time or just repaid at some point? A close but alternate idea would be a savings secured loan (share secured if a CU) where she deposits the funds into a savings account and he borrows the funds directly.

If she wants the loan payments processed and remitted to her, there are crowdloan (P2P) type services out there where she could theoretically be the sole "investor." That may accomplish what you're describing.

Re: Loans to family and friend that report to credit

RootDet — Thu, 10 Feb 2022 01:20:17 GMT

Those services died off, not profitable. Virgin Lending or something like that was the last one and they closed up shop many many years ago.

Re: Loans to family and friend that report to credit

fm92555 — Sun, 13 Feb 2022 03:20:33 GMT

@RootDet wrote:
Those services died off, not profitable. Virgin Lending or something like that was the last one and they closed up shop many many years ago.

Ya, those were the type I was looking for. I hadn't looked in about a decade and I wasn't sure if any new ones started up.

Thanks

Re: Loans to family and friend that report to credit

fm92555 — Sun, 13 Feb 2022 03:24:11 GMT

@brk1971 wrote:
Does she want repaid over a period of time or just repaid at some point? A close but alternate idea would be a savings secured loan (share secured if a CU) where she deposits the funds into a savings account and he borrows the funds directly.
If she wants the loan payments processed and remitted to her, there are crowdloan (P2P) type services out there where she could theoretically be the sole "investor." That may accomplish what you're describing.

I think I will look at the secured loan options.

Not sure if I can find one where she deposits and he gets a loan against it. This may be a credit union thing, but I will search the banks too.

Re: Loans to family and friend that report to credit

SouthJamaica — Sun, 13 Feb 2022 15:35:39 GMT

@fm92555 wrote:
My mother want to loan her grandson some money for a car. I know in the past there services that would let you put together a loan and they would process the paperwork as a more formal process and the payments would be made to that servicer, who would then forward the payments. I know Wells Fargo used to off a service like that 20 years ago.We all though prosper would be like that, but it didn't turn out that way.

Are there any out there now? All I can find are business loans. If there are ones that would help my nephew by reporting the payment to the credit bureau that would be nice.

She could just cosign the car loan, and then he would be building credit with the car loan.