I am 25 and don't have much credit. I had to have a co-sign from my father to get this new car I'm about to get. Now, since he is a co-sign, does that mean that all the credit goes to him on my monthly payments? Or is there a way that I can gain credit myself? Since the loan is in his name and all, wouldn't me paying the monthly bill just benefit his credit and not apply to me at all?
I need to gain credit with my car payments. I need to find a way to do this.
2006-11-29 07:58:22 · 6 answers · asked by ivegotquestions 1 in Business & Finance ➔ Credit
It will help your credit score but not as much as a loan on your own would.
I would concentrate on taking care of the loan your making with your dad first... pay extra and pay down the balance. Once the balace reaches a certain point, go to a different bank and 're-finance' with them with a loan with just your name.
Financial institutions will give anyone a loan, as long as the downpayment and interest rate is high enough to negate the risk. By paying down the loan quickly, your vehicle will retain most of it's value and you'll be able to 're-finance'.
Oh... the financial institution you are borrowing isn't going to refinance.. afterall... why should they... they'll have both you and your dad on the hook should the payments stop. Thus the reason you have to find some other place to secure the loan in just your name.
Good luck!
2006-11-29 08:05:14 · answer #1 · answered by wrkey 5 · 0⤊ 0⤋
In most consignment credit agreements, the primary applicant "you" would be building credit as you make timely monthly payments. After a certain time period, when you make enough consecutive monthly payments the loan will drop the co-applicant "cosigner" and you become fully responsible for the loan. After fulfilling the obligation of the loan, you have increased your credit worthiness by means of having a major purchase.
If you in that time period miss too many payments, the creditor will go after the cosigner, which could impact their credit worthiness.
This is the best way for young people to build and repair credit.
I hope this helps....
Captain O.
2006-11-29 08:49:20 · answer #2 · answered by Captain Oblivious 1 · 0⤊ 0⤋
There's no difference from a joint account to an individual account, as far as your credit rating goes.
Most banks will report the account to both you and your father's credit reports. A rare few will only report on the primary borrower.
Only two ways to find out: Call the lender, or get a copy of your credit report. You can get a free version with no credit scores once per year at http://www.annualcreditreport.com
2006-11-29 08:57:11 · answer #3 · answered by Anonymous · 1⤊ 0⤋
It makes no distinction who's first and who's 2d. the two are the two answerable for the debt and it will instruct on the two credit comments. If the indoors maximum loan is paid on time, it is sturdy credit. If the indoors maximum loan is paid overdue, it is unfavorable credit. If the indoors maximum loan is going into default, the lender will come after the two. that's in no way, EVER a sturdy thought to co-sign for all of us you're no longer legally married to. It in no way seems nicely. human beings desire co-signers because of the fact they have already trashed their own credit. they gained't hesitate to trash yours as nicely. despite if the indoors maximum loan is paid as agreed, it may nevertheless harm the co-signer. The loan could be blanketed of their debt to earnings ratio and would desire to cause them to be grew to become down for a motor vehicle or domicile loan. Co-signing a motor vehicle loan has one extra criminal duty situation. If the motor vehicle is in an twist of destiny, the co-signer may well be sued as they are on the call. word: Poopoola, debt to earnings isn't component of a credit. you hold giving out this incorrect information. earnings isn't stated to credit bureaus and has no impact on a credit. Debt to earnings is an entirely separate ingredient lenders think approximately.
2016-10-13 09:16:00 · answer #4 · answered by ? 4 · 0⤊ 0⤋
You get and build credit for this.
Give the loan 9 months or so and you will see pre approved offers n the mail.
You are on your way. Welcome to being in debt for the rest of your life.
2006-11-29 08:31:51 · answer #5 · answered by tmkng2001 2 · 0⤊ 0⤋
It goes to you if you are the primary. If you do not pay, it will hurt yours and his credit and he would be responsible to pay if you don't.
2006-11-29 08:07:08 · answer #6 · answered by Mariposa 7 · 0⤊ 0⤋