Has anyone done this before? Do you have to have GREAT credit? My credit isn't terrible. I just have one negative on it. Is the transition smooth?
2006-09-11 09:20:54 · 8 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
If you are assuming the payments outright (ie: paying for your cousin) and have the title and payment transferred to your name... a few things can happen.
#1) You risk a higher interest rate due to your credit report... however, installment payments can improve your credit score as long as you are able to keep up with the finances
#2) if you are a cosigner on the lease or title, and are assuming the principle of the debt for your cousin, if he or she defaults on the loan, you WILL be responsible for any late payments and accrued interest.
As for me, I have an above average credit score, have not done this before, which makes me in no way, shape or form any sort of expert. After reading a few of the answers, I just felt like you were being criticized and mislead a little too much. As long as you have all of the required paperwork, and I'm sure there will be more when you file to transfer, it should in theory be a smooth transition.
I think that this question is a good one, but may be a little TOO specific without having all of your information... which you should not solicit here for obvious reasons. I wish you good luck with the process!!
2006-09-11 10:25:27 · answer #1 · answered by Porterhouse 5 · 0⤊ 0⤋
Well first of all, you need to get the loan transferred into your name, which, if you have bad credit, may be difficult. Only then will it reflect on your credit bureau. Otherwise, if you are making payments on the loan that is under your cousin's name, then you are only helping him out. If you manage to get the loan transferred, then, yes, it will help you as long as you keep up on the payments.
2006-09-11 09:24:35 · answer #2 · answered by Stephanie D 2 · 0⤊ 0⤋
are you crazy?? yes, this can have a veryu negative impact. there is no guarantee that your cousin will make the payments and then you really won't have great credit!! You should get a credit card and make small purchases that you can pay in full each month in order to repair your credit.
2006-09-11 09:23:43 · answer #3 · answered by Stephen 3 · 0⤊ 0⤋
If the company he has the loan with agrees it is easy and it will help your credit if you pay it off and be on time with payments
2006-09-11 09:23:36 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Are you taking it over with the Company? Well it will do two things, it may prevent you from getting more credit for awhile as you would have anouther loan; but when you make th epayments times, it will reflect well on your credit.
GOOD LUCK
2006-09-11 09:23:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If yor taking over his payments you will have to qualify for the loan just like he did.
If you dont qualify, then apply elsewhere and buy the car from him using your new loan.
Your not really taking over the loan. You will get a new loan number since it will be linked to your social security number.
2006-09-11 09:23:10 · answer #6 · answered by creskin 4 · 0⤊ 0⤋
Unless you go through the bank and actually assume the load (e.g. get your name on the loan), it will not help your credit at all.
If you do assume the loan, since you have bad credit, the interest rate that you are paying is likely to go up.
2006-09-11 09:22:57 · answer #7 · answered by Bors 4 · 0⤊ 0⤋
It depends on how much your cousin owes on the car and how much the car is worth. If your cousin owes more then the car is worth then you are getting screwed. If your cousin owes less then the car is worth and it's in good condition ( like you won't have to fix it up or anything) then it's a great idea!
2006-09-11 09:23:45 · answer #8 · answered by sassykiss_USA 1 · 0⤊ 0⤋