does CO-SIGNING a loan effect your credit?

[madbomber31]

if i were to co-sign on a loan for someone would it effect my credit? or would it only show up if something happened to the person i co-signed for? (like they defaulted).

 

[SoreArms]

yes, my younger brother co-signed for one of my student loans (it's pretty sad when your younger brother is co-sigining for the older brother) and he gets calls everytime I am late with a payment.

 

[FreakMonster]

if i were to co-sign on a loan for someone would it effect my credit? or would it only show up if something happened to the person i co-signed for? (like they defaulted).

YES DON'T DO IT!!!

 

[SoKlueles]

heck yeah, I cosigned for my exes cousin and when they were late on a payment, they called us.......untill finally they freakin paid it off, ever since then i said i would not cosign for anyone else unless its my kids for something important

 

[madbomber31]

thanks... but to turn it around.. it's actually my mom that would be co-signing for me... i am a deadbeat as far as credit goes... i've been looking at cars and today i went out and my clutch is just about gone... it's a 96 chevy with 160K on it.. i cant see putting a grand into the vehicle...

i'll figure something out though.

 

[SoKlueles]

thanks... but to turn it around.. it's actually my mom that would be co-signing for me... i am a deadbeat as far as credit goes... i've been looking at cars and today i went out and my clutch is just about gone... it's a 96 chevy with 160K on it.. i cant see putting a grand into the vehicle...

i'll figure something out though.

If she is willing to help you then let her do it, just make sure u are not one day late on your payments. My dad cosigned for my brother on a car, and he was late for the payments, and they called my dad wanting FULL payment if he didnt pay it immediately.....but eventually my brother got the car paid for

 

[Sassy69]

By co-signing on a loan, the co-signer is effectively saying either "I trust this person enough to add my name to his debt", or "I take enough responsibility for this person that I agree to be legally bound to cover his failure to pay".

 

[*MissFit*]

if he cant pay it... or defaults.. i think u becoem responsible.. don't do it

 

[FreakMonster]

if he cant pay it... or defaults.. i think u becoem responsible.. don't do it

Nice butt, LOL

 

[madbomber31]

ya, i looked it up...

if A cosigns for B.. it's essentially A who is responsible... so banks see that when it comes to other loans and things of that nature that A may apply for...

which is my concern, cuz the mom wants to get a big home loan for another house and adding a car would lower her score.... sucks.... i dont know what to do now.... oh well, it'll work out.

 

[jerseyart]

ya, i looked it up...

if A cosigns for B.. it's essentially A who is responsible... so banks see that when it comes to other loans and things of that nature that A may apply for...

which is my concern, cuz the mom wants to get a big home loan for another house and adding a car would lower her score.... sucks.... i dont know what to do now.... oh well, it'll work out.

It's worse than that for your mom

They will count the car payment against her as her own debt. Sometimes with 12 months of cancelled checks showing you make the payment on your own they will waive that, but you need at least that long to demonstrate you can pay the loan without her help, and even then its not guaranteed.

Her purchasing power for a mortgage will decrease by the amount of the car payment