My brother -- the one with terrible credit -- wants me to co-sign for a car loan. I know he will not repay the loan on time. He isn't even making the payments on the vehicle he is trying to replace. I've never been late or missed a payment in my entire life. I'm trying to avoid being the bad guy by not co-signing.
2007-01-26 03:38:24 · 10 answers · asked by IPuttLikeSergio 4 in Business & Finance ➔ Credit
How about "No"?
Seriously, you gave the exact reasons in your question. You don't want to risk your perfect credit record. That doesn't make you a bad guy.
If your brother is trying to make you feel like the bad guy, that's his problem. He's just trying to pressure you. Don't make it your problem too by feeling guilty. You have nothing at all to feel guilty about. Just say no.
2007-01-26 03:50:11 · answer #1 · answered by Anonymous · 2⤊ 0⤋
There is a saying out there. If you loan a person $20, and you never see them again, that was a small amount to pay to get rid of them. Of course that is a little extreme, of course you do not want to be rid of your brother. I would just say no. If he wants and explanation, be nice, but make it clear he made this bed and he can lie in it. Credit history and credit scores are just too important. Blame it on "the man" if need be. Maybe create an "E-card" and email it to him. Suggested titles: -Hell no! -Sorry you did not get the loan -I can hook you up with a scooter -Maybe next time pay your bills... -Shouldn't I be mooching off you by now? -attached is a lottery ticket, this has higher odds than my co signing -Mom may have loved you more, but I have a better car.. All of this is in good fun of course. Just be honest and do not compromise. Sorry man, can't do it.
2016-05-24 02:00:07 · answer #2 · answered by ? 4 · 1⤊ 0⤋
The Truth About Debt and Relationships
Myth: By cosigning a loan, I am helping a friend or relative.
Truth: Be ready to repay the loan. The bank wants a cosigner for a reason - they don't expect the friend or relative to pay.
Think with me for a moment. If debt is the most aggressively marketed product in our culture today, if lenders must meet sales quotas for "loan production," if lenders can project the likelihood of a loan going into default with unbelievable accuracy - if all these things are true and the lending industry has denied your friend or relative a loan, there is little doubt the potential borrower is trouble just looking for a place to happen. Yet people across America make the very unwise (yes, dumb) decision to cosign for someone else every day.
The lender requires a cosigner because there is a very high statistical chance that the applicant won't pay. So why do we appoint ourselves as the generous, all-knowing, benevolent helper to override the judgment of an industry that is foaming at the mouth to lend money, and yet has deemed your friend or relative a deadbeat looking for a place to fail, or at least a loan default looking for a new home? Why do we cosign knowing full well the inherent problems?
We enter this ridiculous situation only on emotion. Intellect could not take us on this ride. We "know" they will pay because we "know" them. Wrong. Parents cosign for a young couple to buy a home. Why do they need a cosigner? Because they couldn't afford the home! Parents cosign for a teenager to buy a car. Why would parents do this? "So he can learn to be responsible." No, what the teenager has learned is: if you can't pay for something, buy it anyway.
The sad thing is that those of us who have cosigned loans know how they end up. We end up paying them but only after our credit is damaged or ruined. If you cosign for a car, the lender will not contact you when the loan is paid late every month, but your credit is damaged every month. The lender will not contact you before they repossess the car, but you now have a repo on your credit report. They will contact you to pay the difference between the debt and the below-wholesale repo price they got for the car, which is called a deficit. If the lender did contact you, there is nothing you can legally do to force the sale of the car, because you don't own it; you are merely on the hook for the debt. When you cosign on a house you will get the same results.
According to Proverbs 17:18, "It's stupid to guarantee someone else's loan" (CEV). That pretty well sums it up. Just like trying to bless a loved one with a loan, many people are trying to help by cosigning, and the result is damaged credit and damaged or destroyed relationships. I have cosigned loans and ended up paying them. One poor guy cosigned for me, and he ended up paying when I went broke. If you truly want to help someone, give money. If you don't have it, then don't sign up to pay it - because you likely will.
2007-01-26 04:34:58 · answer #3 · answered by djollie111 3 · 1⤊ 2⤋
Sounds like you have a problem telling him no. You arent obligated to co-sign for anyone you dont feel comfortable with
2007-01-26 06:21:17 · answer #4 · answered by GrnEyedBandita 3 · 1⤊ 0⤋
Just tell him no, you will not sign for a car loan for him.
2007-01-26 03:59:02 · answer #5 · answered by strawberrycrush 4 · 1⤊ 0⤋
Just tell them that you cant becaus you may want to purchase something new in the next few months and you do not have enough debt to income ratio....myabe that will work
2007-01-26 03:52:14 · answer #6 · answered by tabby 1 · 1⤊ 0⤋
lol... years ago there was a bestseller called "When I Say No, I Feel Guilty"... a self-help book on assertiveness.
2007-01-29 18:57:35 · answer #7 · answered by clawedlemew 3 · 1⤊ 0⤋
tell him no. credit is too valuable to risk on irresponsible family members. tell him to grow up
2007-01-26 03:47:23 · answer #8 · answered by Scott K 2 · 2⤊ 0⤋
Easy...say it with one word: "NO."
To be emphatic, I guess you could say "HELL NO," but that may be over doing it a bit too much.
2007-01-26 03:50:12 · answer #9 · answered by cardinalboy97 3 · 2⤊ 0⤋
just say "forget it dude" :)
2007-01-26 04:12:24 · answer #10 · answered by chandler 2 · 1⤊ 0⤋