Can co-signing be good?
09-13-2010, 01:34 PM
#1
Veni, vidi, vici
Thread Starter
Can co-signing be good?
I am co-signing a car for my sister. I have read thru countless forums and read all about the risks involved with co-signing, so I know what I am getting myself into. my sister is reliable, but just has no credit. She has been working for about a year, and makes more then enough to pay for her estimated car payments, and if she gets fired, I can afford to help out.
I just want to know if she is able to pay off the loan completely (3 year loan) on time, in full, does this have a positive impact on my credit? I can never find the answer to this, I mean I know if she misses payments, my credit is negatively affected, but if she makes all her payments on time, will this raise my credit?
I just want to know if she is able to pay off the loan completely (3 year loan) on time, in full, does this have a positive impact on my credit? I can never find the answer to this, I mean I know if she misses payments, my credit is negatively affected, but if she makes all her payments on time, will this raise my credit?
09-13-2010, 01:38 PM
#2
Team Owner
From Experian's Q/As:
So....
- If the account goes delinquent, it will affect your score whether you are aware of the delinquency or not.
- It will affect your total debt and may impact your capacity to obtain credit.
- If she pays it on time and in full it won't hurt your rating.
Q Does cosigning for a loan affect a credit score?
A Absolutely. By cosigning, you are accepting full responsibility for the debt if the other person does not pay as agreed. A cosigned account will appear on both your credit history and the other person’s. All loans and credit card accounts that appear on your credit report will impact credit scores.
A Absolutely. By cosigning, you are accepting full responsibility for the debt if the other person does not pay as agreed. A cosigned account will appear on both your credit history and the other person’s. All loans and credit card accounts that appear on your credit report will impact credit scores.
- If the account goes delinquent, it will affect your score whether you are aware of the delinquency or not.
- It will affect your total debt and may impact your capacity to obtain credit.
- If she pays it on time and in full it won't hurt your rating.
Last edited by svtmike; 09-13-2010 at 01:41 PM.
09-13-2010, 01:40 PM
#3
Senior Moderator
iTrader: (2)
Join Date: May 2000
Location: where the weather suits my clothes
Age: 55
Posts: 27,921
Received 1,080 Likes
on
661 Posts
http://financialplan.about.com/cs/pe...gningLoans.htm
Will the Co-signed Loan Affect My Credit Score?
Yes, it will. The loan you co-sign will show up as a liability on your credit record, which may prevent you from obtaining credit yourself. If you're planning to buy a house, car, or other large purchase during the life of the co-signed loan, you may want to think twice.
Will the Co-signed Loan Affect My Credit Score?
Yes, it will. The loan you co-sign will show up as a liability on your credit record, which may prevent you from obtaining credit yourself. If you're planning to buy a house, car, or other large purchase during the life of the co-signed loan, you may want to think twice.
09-13-2010, 01:41 PM
#4
Needs more Lemon Pledge
I think the question, though, is that if the person makes all payments on time and satisfies the loan for which you have cosigned, does this IMPROVE your score or only give you the opportunity to lower your score?
09-13-2010, 01:41 PM
#6
Veni, vidi, vici
Thread Starter
^(*to the first post)^ dude, I know this information. I know it "affects" my credit, but I want to know if it can affect it in a positive way from someone who has been a co-signer of a successfully paid off loan.
Again, I know what co-signing means. I know it can be negative, but can it be positive?
Again, I know what co-signing means. I know it can be negative, but can it be positive?
Trending Topics
09-13-2010, 01:43 PM
#8
Veni, vidi, vici
Thread Starter
lol
09-13-2010, 01:46 PM
#9
Veni, vidi, vici
Thread Starter
so i am jumping in to get her a vehicle, especially since winter is coming and her bus/train commute is 2 hours. a car would make her commute 30 min.
I know there is a very low, low ,low chance of her getting laid off or fired since she is going into a medical position and a few of the staff members at the hospital are close friends to the family. She is very responsible, so I don't see myself needing to make payments for her (she makes more then me?!?!) so I am hoping that this will have a positive affect on my credit if done correctly.
Last edited by Bayam0n; 09-13-2010 at 01:49 PM.
09-13-2010, 01:47 PM
#10
09-13-2010, 01:48 PM
#11
Team Owner
^^ dude, I know this information. I know it "affects" my credit, but I want to know if it can affect it in a positive way from someone who has been a co-signer of a successfully paid off loan.
Again, I know what co-signing means. I know it can be negative, but can it be positive?
Again, I know what co-signing means. I know it can be negative, but can it be positive?
09-13-2010, 01:49 PM
#12
Needs more Lemon Pledge
09-13-2010, 01:52 PM
#13
Veni, vidi, vici
Thread Starter
. Is there a reason why not? how can it not affect my score if paid off on time, but drastically affect it if not paid at all. doesnt make sence to me
09-13-2010, 01:55 PM
#14
Veni, vidi, vici
Thread Starter
, then you edited the post, stating that it has no positive affect, after the fact.
09-13-2010, 01:57 PM
#15
Team Owner
The only thing active on my wife's credit report is a mortgage she cosigned with me. Her score is higher than mine.
09-13-2010, 01:59 PM
#16
Team Owner
you didn't answer the question at all, you just told me something I already knew and stated in the question that I knew it would affect my score, i just wanted to know if it can be a positive affect. I wasn't trying to be a douche, then you edited the post, stating that it has no positive affect, after the fact.
, then you edited the post, stating that it has no positive affect, after the fact.
09-13-2010, 02:00 PM
#17
Senior Moderator
iTrader: (2)
Join Date: May 2000
Location: where the weather suits my clothes
Age: 55
Posts: 27,921
Received 1,080 Likes
on
661 Posts
http://www.rcnyc.org/being-a-co-sign...sonal-loan.htm
Looks like my sources may be wrong.
Since the loan can both positively and negatively impact the credit rating of the co-signer...
09-13-2010, 02:02 PM
#18
Senior Moderator
iTrader: (2)
Join Date: May 2000
Location: where the weather suits my clothes
Age: 55
Posts: 27,921
Received 1,080 Likes
on
661 Posts
you didn't answer the question at all, you just told me something I already knew and stated in the question that I knew it would affect my score, i just wanted to know if it can be a positive affect. I wasn't trying to be a douche, then you edited the post, stating that it has no positive affect, after the fact.
, then you edited the post, stating that it has no positive affect, after the fact.
09-13-2010, 02:29 PM
#19
Needs more Lemon Pledge
09-13-2010, 03:32 PM
#21
Needs more Lemon Pledge
09-13-2010, 07:25 PM
#22
Why co-sign? Why not just take the loan out yourself and lend the money to her? Just like in Baccarat, it's best to be the bank. Either way, you're putting your credit on the line for her and you're the one responsible.
Finally, never mix business and family. Any money you lend to a family member should be considered a gift with no expectation of repayment.
Finally, never mix business and family. Any money you lend to a family member should be considered a gift with no expectation of repayment.
Thread
Thread Starter
Forum
Replies
Last Post
Pegon95
3G TL Audio, Bluetooth, Electronics & Navigation
4
09-15-2015 01:54 PM
