My son who just came over here(USA) wanted to buy a new car.
His credit history still poor. I decided to be a guarantor or co-signer just to help him get started with his new life here.(I've been there).
We wanted to wait for a incentive(special financing/incentive) offered by the dealers. Will the credit history be based on the primary applicant(son) or will it be based on my credit history?
Thanks a million.
2007-02-01 06:31:29 · 5 answers · asked by JKZ 1 in Cars & Transportation ➔ Buying & Selling
The whole purpose of YOU co-signing is so that he can get a car based upon YOUR credit rating. Because you are a lesser risk to the Lien Holder, the interest rate will be lower.
However, if your son discontinues to make his payments for any reason -- the Lien Holder will be knocking on YOUR door to collect the unpaid moneys.
Prepare for this contingency in case your son can not continue payments for [fill-in-the-blank] reason(s)
2007-02-01 06:38:07 · answer #1 · answered by rob1963man 5 · 0⤊ 0⤋
I work for a Ford dealer and Ford Motor Credit Corp is very good about giving people a second chance if you are buying a new ford. Just a few days ago I was able to get a woman with a bankruptcy a few years ago 0.9% APR on a new Focus because her co signer had pretty good credit. If he is looking for payments in the $350-400 range its pretty easy to get a new car.
As far as which score is used to determine APR - each lender is different. The finance manager at the dealership will know which lenders to send it too. Some average the scores - some use the higher score.
2007-02-01 10:19:19 · answer #2 · answered by Ann507 2 · 0⤊ 0⤋
He just got here and his credit sucks already? Maybe you should buy him a cheap car and counsel him how to pay his bills on time.
The first thing I would do is pull his credit, the government has a website that gives you one free credit report every year from each of the credit agencies. How bad could his credit really be if he just got here?
Some finance institutions use your credit to determine the rate, some will use your son's credit. They would give him a high rate with you signing but he wouldn't qualify if you weren't on the loan.
2007-02-01 09:12:56 · answer #3 · answered by Confused 3 · 0⤊ 0⤋
Both, and if your son fails to make the payments then the company can come after you for the money because you co-signed for the loan.
2007-02-01 06:40:58 · answer #4 · answered by dragondave187 4 · 0⤊ 0⤋
Both but primarily - yours.
2007-02-05 00:57:56 · answer #5 · answered by Anonymous · 0⤊ 0⤋