I've never cosigned for anything with anyone so I'm not sure what to do. She's asked her parents and they've said no. My mom advised me not to do it. The loan is 4000, however she can't get it on her own. I'm not sure what to do.She promised to make all the payments on time etc etc, however I'm still not too sure. I told her I'd think about it and get back to her. I take really good care of my credit, pay my bills on time etc etc and I really don't want to mess it up. She told me that I'm her last hope, and I feel bad but I"m not sure if I'm willing to risk my credit in the process.. I'm thinking I'd rather my cousin stop talking to me than my credit getting f'd up. What should I do? Is this a disaster waiting to happen? I'm curious to read your opinions on it and any horror stories if possible.. Thanks in advance everyone :).
2006-12-17 02:22:17 · 19 answers · asked by ƒ®îgg Üþ ©hî¢ ®™ 1 in Business & Finance ➔ Credit
Don't do it. Even if she makes all her payments on time it will show as a debt against you and may keep you from getting a loan in the future. Worst case something bad happens to her, something out of her control and you are screwed.
2006-12-17 02:25:28 · answer #1 · answered by Anonymous · 1⤊ 0⤋
1
2016-09-26 18:46:52 · answer #2 · answered by ? 3 · 0⤊ 0⤋
It's not that hard! Look at her history of money management and make a judgement. Does she spend more than she makes? Pay her bills months late if at all? Does she keep a job, or even have a job? What is her general attitude towards spending; does she buy what she wants when she wants, or does she know when and when not she can afford things?
Short answer though is that the risks are way to high for your cousin to get a loan alone, why should you assume that risk?
In the end if you do decide to cosign, I would get some sort of collateral that means something to her or have her sign a contract with you that states that she will make payments on time and will not default on the loan.
2006-12-17 02:31:05 · answer #3 · answered by Marc 3 · 0⤊ 0⤋
If you have a 760 score, you've obviously done some things right. Don't start doing the wrong thing now. You will be responsible for any payments she misses. Ask yourself this: At this time, can you afford to withdraw $4000 and throw it out the window? If you answer no, then you have the answer you need to tell your cousin.
If she can't afford a $4000 car, and she can't get a loan on her own, she needs to set her sights lower. She needs to save her pennies and dimes and start with whatever she can afford, like a $500 car.
2006-12-17 04:26:08 · answer #4 · answered by Christian 2 · 0⤊ 0⤋
My advice is don't do it. Your credit will be held hostage for the length of the loan (at least three years?) and it will count as debt to you. My brother cosigned with me to get my first apartment but he was off the hook after six months was up. Plus it was necessary housing and his girlfriend was my roommate. Your cousin might have to look into public transportation, getting a loan for part of the money from her parents, etc. She may not talk to you for a while if you say no, but if she messes up, she may avoid you forever. Be strong, you earned your good credit rating.
2006-12-17 05:58:52 · answer #5 · answered by PF32 2 · 0⤊ 0⤋
The only time you should be willing to co-sign for anyone is if you are ready to make all the payments yourself without getting whatever the loan was to buy.
I've talked to tons of people that have horrible experiences with co-signing. One girl co-signed a loan for her boyfriend's car. They broke up, her ex didn't pay the loan, ruined her credit, and her boyfriend kept the car.
Co-signing should raise red flags for you anytime, but especially since your cousin's own parents won't co-sign for her. Advise her that you love her too much to ruin your relationship over money, so you won't be co-signing her loan. Tell her she should either buy a cheaper car she can get financing on her own or save up the money and buy the car outright.
2006-12-17 04:23:18 · answer #6 · answered by Vadalia 4 · 1⤊ 0⤋
If the bank and her parents won't do it, you shouldn't either.
If you cosign, you are ultimately responsible for the loan. If she is late or doesn't make the payments, you have to.
You don't get a score of 760 overnight. Don't ruin that because you have good family ethics.
Also, she can get a loan on her own, just not one with a good interest rate.
2006-12-17 05:17:21 · answer #7 · answered by Anonymous · 0⤊ 0⤋
DO NOT DO IT!
Obviously she has a hard time paying her bills and tracking her own money. If she didn't then she would have good credit and could get the loan herself. The chances are that you'll be making the car payments eventually. If she throws a fit then good!
NO! NO! NO!.
2006-12-17 02:26:57 · answer #8 · answered by KC 4 · 0⤊ 0⤋
If you are worried, I wouldn't do it.
If she doesn't pay, you are of course responsible. If the car is repossessed it will be on your credit for at least 5 years I believe.
I have also heard on the news that if it comes to that and the case almost closed (5 years almost is up) they can send you a letter asking you to make a one time payment of whatever let's say, $200, and you send it. That will reopen that case for another 5 years.
I would truely think about it.
Maybe she should look at something more affordable.
2006-12-17 02:34:04 · answer #9 · answered by Anonymous · 0⤊ 0⤋
DONT do it!! My co-worker co signed a loan for a friend. It contributed to his divorce. The bank will go after the person that they think is more likely to pay the loan, regaedless of who signed first.If co sign your credit will be messed up or you will be out $4000, plus interest
2006-12-17 02:28:17 · answer #10 · answered by Anonymous · 0⤊ 0⤋