my credit score is poor will having a co-signer allow me to get a bigger loan?
2007-01-18 08:12:40 · 8 answers · asked by tumama 2 in Cars & Transportation ➔ Buying & Selling
In effect, when you take on a Co-signer, the co-signer is assuming your loan. That person's credit background will become the basis for the origination of the loan, and ultimately it is the co-signer that is responsible for paying the loan.
The person who does this better trust you, that you will pay off this loan, and be sure that you will make each payment on time. Anytime you screw up, it not only affects your credit rating, but it also affects the credit rating of the co-signer.
And if something happens that you are not able to pay off the loan, the credit company will not come after you, but rather,they will go after the co-signer.
I hate sounding like your father here, but from your question it sounds like you are not too old, and also, have been rather immature or irresponsible toward paying bills on time. If you are able to find someone to co-sign on this loan, you are going to have to become much more responsible paying on this loan.
With a co-signer you are not only affecting your own credit rating, but whatever you do affects someone elses credit rating, too. If you screw up, you may affect someone elses ability to purchase a home, get a loan for someone's college education, or worse...
I also read the rest of your answers, and there was one incorrect item stated. When you have a loan with a co-signer, both parties (the signee and the co-signee) are treated equally. If you screw up, it shows up on both your ratings and history, but on the other hand, if you make all the payments on time for the life of the loan, that will also be reflected on yours and your co-signers rating and history.
What you do will affect your credit rating regardless of whether or not you have a co-signer.
2007-01-18 09:09:59 · answer #1 · answered by LongSnapper 4 · 0⤊ 0⤋
1
2016-09-26 10:22:30 · answer #2 · answered by Dorothy 3 · 0⤊ 0⤋
If you do not have an established credit history having a cosigner with one will help you get the loan. A cosigner also provides some insurance to the finance company that if you default on the loan they will have someone to go after if you do not pay.
2007-01-18 08:18:57 · answer #3 · answered by miztiffany 3 · 0⤊ 0⤋
A lender will ask for a cosigner is they think that there is too much risk in giving you a loan in your name alone.
A cosigner is legally bound to make good on the loan and payments should you default.
Both you and the cosigner are responsible for the loan payments, and you both do receive credit for the payments.
If all payments are on time, then it helps both of your credit, but if payments are late, or the car becomes repossesed, then it reflects on both of your credit.
2007-01-18 08:57:53 · answer #4 · answered by Robert S 3 · 0⤊ 0⤋
Almost sure that you might find many financial solution at: financial-care.info-
RE How does having a co-signer on an auto loan help me?
my credit score is poor will having a co-signer allow me to get a bigger loan?
2014-09-22 06:40:12 · answer #5 · answered by Anonymous · 0⤊ 4⤋
Leasing is under no circumstances a clever funds selection. Is there a undeniable reason once you're making "great earnings" which you will not purchase a automobile you may cope with to pay for? i've got under no circumstances made plenty, yet each of my 3 vehicles have been ones I paid funds for. I have no thought why somebody might decide to "finance" an merchandise which will value them plenty greater suitable than the sticky label fee and final around a decade or 2. Mortgages make a undeniable quantity of expertise, yet once you may't pay funds for different issues, it is a demonstration you may't relatively cope with to pay for it. in case you stumble upon any economic issues on your lifestyles (such as you lose your activity or exchange into disabled) your cosigner is going to loathe you by way of fact he turns into to blame for one hundred% of the mortgage the 2nd he makes the errors of cosigning. the automobile enterprise is interested in a sale so as that they are going to probable do in spite of they could make that sale, yet they don't care approximately you or your cosigner and if there's a situation, they are going to take no accountability on your undesirable determination to finance this automobile.
2016-12-16 07:43:53 · answer #6 · answered by ? 4 · 0⤊ 0⤋
Yes it will help you get a bigger loan but it will do nothing for your credit.
2007-01-18 08:20:32 · answer #7 · answered by Rachel Bitchface 5 · 0⤊ 1⤋
if you cant pay the other person has to.if the other person has good credit you can get a bigger loan
2007-01-18 08:22:32 · answer #8 · answered by Anonymous · 0⤊ 0⤋
yes it will help you out .. both of you guys will build up credit go for it !
2007-01-22 06:17:20 · answer #9 · answered by morena 2 · 0⤊ 0⤋