Someone asked me to cosign on an auto loan, but I have student loans and fair credit(620), will I get denied?

Question

Several loans, deferred- unable to pay. Credit score is on the low end of Fair. No other credit history.

Answer 1

if your unable to pay your own loans why would you sign for someone else's
that doesn't make too much sense

Answer 2

If your friend's parents can't co-sign, this doesn't speak well at all for either their credit or hers. That alone should send out big-time warning bells that maybe she's not that good of a credit risk. Student loans become payable once a person quits or finishes school. Say 4 years from now your friend graduates, can't find a job, gets killed in a wreck, or marries some guy from Istanbul. You are stuck with 10 years of student loan payments which you MUST pay or risk having your credit damaged and wages garnished by the Feds. Cosigning also diminishes your own ability to get a loan. When you apply for a car loan, student loan of your own, or even a mortgage, your banker will count that student loan against you ~ because, if your friends defaults, you will be picking up the payments.

Answer 3

1

Answer 4

Your credit score is decent considering the average is roughly 674 but it could use a little help in raising it. Now that doesn't mean that you will be denied when you co-sign for the auto loan but you should consider your actions.

If the person you co-sign for defaults on the loan then you become liable and if you're unable to pay your deferred student loan this could prove to be a death sentence for your own finanical situation.

Even when someone is considering becoming a co-signer for a family member they should proceed with caution.

Remember - every time you make an inquiry against your own credit it can affect the score in a negative manner and heaven forbid if you do co-sign for this loan and find out that you yourself need a loan sometime in the future. You may find out that you over-extended at a time when you yourself need a loan.

Also before co-sigining for any loan perhaps you shoudl look over your own credit report in order to see why your score is 620 instead of higher.

Answer 5

I don't know how many cosign disasters we need to hear before we say it again: do not cosign! Usually the person who cosigns ends up with the debt. Don't put your credit on the line. Loan them money if you have to, but don't cosign for someone.

This doesn't mean you don't care about them. It just means you care more for yourself.

Answer 6

You'll probably be denied if you can't make payments on your own loan. When you co-sign, you're vouching for the person to the bank. If the person can't pay the loan, then you have to pay. If the bank doesn't think you have the ability to take on the debt, based on your credit score and other debt, then your co-signing won't help the other person.

Answer 7

Please. . .

In the name of all that is good, DO NOT co-sign someone else's note.

You put your 620 FICO score in jeopardy and you gain very little.

The person asking you to co-sign the note is doing so because businesses have determined him/her to be too big of a credit risk. Trust their judgment!

Answer 8

i don't know about you getting denied but, just remember if the person you cosigned for defaults on the loan the loaner will come after you for the balance. be careful.

Answer 9

low end of fair. I would hestiate to cosign. one it will ding your credit.

If they are late or dont pay guess who gets dinged for late payment and gets to pay if they dont it.
I lost a great friendship when i cosigned a loan for a freind.....
It is not worth it......... please really think about this

Answer 10

why would you risk your credit score?
NEVER co sign
not for a GF
not for a brother
not even for dear ol mom
your credit score is with you for the rest of your life and should be protected at all times