co-sign for auto loan?

Question

what do u do if one if ur sisters asked u to co sign for a auto loan?? she has bad credit but u love her and dont want her to be upset, should u trust her? or what should i do??

Answer 1

Whatever you do, don't sign anything! If she has bad credit, you're going to end up paying for the car. If you can afford this, great. If not, DON'T DO IT!!! Offer to help your sister get credit counseling, but don't put your own credit rating on the line for her. I know this sounds coldhearted, but my sister is the same way, and as long as there's someone around who's willing to bail her out, she will never change. Some people have to hit bottom before they figure things out.

Again -- if you can afford to pay for the car, and you don't want to deal with the emotional garbage she'll throw at you, go ahead and cosign. Otherwise, find another way to help her out.

Answer 2

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Answer 3

I wont tell you to do it or not do it. You know your sister better than any of these posters. People have problems and everyone deserves a second chance. Before you agree to co sign realize that you will be responsible for the loan if she does not make the payments. Don't let her get more car than she afford and she will have to have full coverage auto insurance. Do the math if she cannot afford the car she wants get something cheaper and remember your credit will be at risk.

Answer 4

Good question but hard answer coming your way. Unless you have the funds to pay her payments don't do it. You could lose your credit also. No matter how much yuo love her if she screwed up her credit she could screw yours too. And it may not be her fault but is still he rresponsibility,.

I co-signed for my daughter and am not making payment s on her car to avoid the bank taking it. It isn't all her fault she just does not manage he rmoney and she doesn't make any. she went to college for "medical tech" And People who graduate form medical tech here rarely find a job much less making a living. She was lied to about how much it would pay and the ease in getting a job by " the local college here "SWGTC".
So she is going to college not for a nursing career but is unable to make car payments so here comes daddy:):).
If you do co-sign make a contract with the bank that before it becomes past due to contact you to save both of your credits. Her credit action becomes your credit liability once you co-sign.

Answer 5

Well if you co-sign, and she makes any late payments, you are liable as well, and your credit will get dinged as well.

So you need to make it very clear to her that she cannot be late, and must make every payment on time before you agree to co-sign. Also, if you plan on refinancing or buying a house, it will affect your credit score in the short term, so don't do it if you plan on anything like that anytime soon.

But otherwise it shouldn't be a problem so long as she pays on time.

Learn about credit, mortgage, and personal finance:

http://www.thetruthaboutmortgage.com

Answer 6

she has bad credit for a very good reason. if they won't give her the loan, she needs to build her credit back up. bad credit is different from no credit. if she didn't have enough credit, i would say MAYBE you should help her. you can't take that chance on messing up your credit. that doesn't mean you don't love her. if she is a reasonable adult, she will understand that.

Answer 7

You have to look at her credit history and ask yourself "wy does my sister have bad credit?" Because she doesn't pay her bills, that's why. I would advise against this because you are held as much liable as she, if the bill doesn't get paid. And to save your credit, you may end up paying the bill. You may not be able to finance things for yourself even if the bill is current because your credit limit is already maxed out.

Answer 8

Don't do it!

Anyone who has bad credit doesn't value it. If they default it will be your bad credit, not hers. No one should ask for you to co-sign; they got into the mess, let them get out. If you love her force her to figure it out herself. Otherwise, once she burns your credit, she'll move onto another. Your not helping her if you do this. She needs to figure it out on her own.

Answer 9

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