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Lees
Joined: 08 Oct 2009
Lees's page
Posts: 1
37 Magic Points
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Subject: Do having a co-signer hurt your credit
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Thu Oct 08, 2009 7:58 pm
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| Ask credit questions ...my friend was buying a car and the credit manager at the dealer told her that she would get a better interest rate if she had a co-signer. Now another loan that she applied is asking for a co-sign. How long do you think that this will be the case and is there anything she can do to better her situation? |
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goodnatured
Joined: 03 Nov 2007
goodnatured's page
Posts: 3735
10 Magic Points
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Fri Oct 09, 2009 2:25 am
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I think that if getting a co signer will give you a better rate then go for it. As far as the credit report, as long as the payments are made on time, the primary lender will get the good results on your report. I don't think that having a co signer will have any impact on your report, you will just get the better rate. Keep the payments up and on time and reep all the rewards.
goodluck with this. |
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Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1093
25288 Magic Points
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Sat Oct 10, 2009 7:30 am
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Hi Lees,
Do you know anything about your friend's credit report or score? The dealers are probably considering her as a high risk customer and hence they want her to get a cosigner. In fact, if your friend can get a cosigner for her loans, it will help her in getting loans and it will also help her in raising her credit score. If she defaults on her payments, then the cosigner will have to pay her debts. Being a cosigner is like acting as the guarantor for someone else’s debt.
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All the Best 
Justin |
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sunnyca
Joined: 10 Sep 2009
sunnyca's page
Posts: 150
950 Magic Points
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Sat Oct 10, 2009 5:50 pm
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Thats correct
Nomally some one needs co-signign when they have poor credit or not enough income to qulify for the loan
And for yoru it will take some points away since they will chek your report, but it will help you in the logn run if the payments are done with out defulting
If you are plannign to buy somehting big like a house and want to apply for mortgage, then this is not a good idea, since this will increase your debt to income ratio |
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sdchargers_63
Joined: 13 Aug 2007
sdchargers_63's page
Posts: 1334
1 Magic Points
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Subject: cosigner
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Sun Oct 11, 2009 12:10 pm
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| Are you considering co-signing for your friend? That would be a wonderful jesture, on your part. On the other hand, if you (or anyone else) does this, just be aware if the friend doesn't pay on the debt, the lender will go after the co-signer. |
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goodnatured
Joined: 03 Nov 2007
goodnatured's page
Posts: 3735
10 Magic Points
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Mon Oct 12, 2009 2:22 am
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| You should read through some of the co signer threads before you make that decision, it is your credit, and another person is not concerned about it. They may seem that way at first but reading through the threads, I would fear my butt off doing this. |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
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Tue Oct 13, 2009 10:04 am
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| I agree. I just posted on another thread the importance of good credit. It effects everything today from your job, interest rates and even car insurance. Most loans are lenghty ones lasting anywhere from 3-6 years. This is a long time to be held accountable for someone else's loan. I would make sure this was a very trust worthy person first and even then life factors can come into play (like job loss). Are you ready to take over an extra loan payment yourself if the friend can not pay? When co-signing one should look at their own finances to be sure they can afford what they are co signing for..just in case. |
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sdchargers_63
Joined: 13 Aug 2007
sdchargers_63's page
Posts: 1334
1 Magic Points
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Subject: co-signer
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Tue Oct 13, 2009 11:22 am
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| That's a good point...making sure YOU are able to pay back the loan if the signer' is unable to. Of course, this is your decision, OP. But, I would think about all that is involved. |
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