2007-03-04 11:30:06 · 10 answers · asked by gigliogirl1122 1 in Business & Finance ➔ Renting & Real Estate
No.
The only time something will happen to your credit score is reporting of that specific loan that you are signing for with the person who has bad credit. Whatever happens with that specific loan you will be responsible for.
2007-03-04 11:34:22 · answer #1 · answered by bbrzt 4 · 0⤊ 0⤋
Your credit score is not effected by the other person's credit score. But, if you cosign on a new debt, that new debt can effect your credit score because now you may have a new debt/credit ratio (how much you owe/how much credit you have). That effects your credit score. But, the company may not report your information to the credit agencies monthly. In fact, as a cosigner, they usually won't report your information to the credit bureau. They only do that if the payments are not made on time. YOU ONLY HAVE TO WORRY IF THE PAYMENTS ON THIS NEW DEBT ARE NOT PAID ON TIME. That is what will mess up your credit. Because you are 100% responsible for that debt if the other person doesn't or can't pay. You will have a very hard time getting out of that contract. Basically, if you cosigned, you are just as responsible for the debt as the other person even if you don't own the property/item you cosigned for. You promised to pay the debt if the other person doesn't or can't. I strongly recommend not cosigning anything. If you really want to, Get a joint loan instead so atleast you own part of the property (car, house, whatever), but realize you will still be 100% responsible for the debt if the other person doesn't pay.
2007-03-04 19:50:43 · answer #2 · answered by dundi 4 · 1⤊ 0⤋
I believe this to be true. If you cosign, a note on your credit report becomes history and is reflected as a debt for you which can be negative depending on your overall credit situation i.e too much credit. If the person does not pay, then yes, it will reflect as bad credit for you. Otherwise, if the person makes payments on time, it will not.
2007-03-04 19:45:15 · answer #3 · answered by philsky 2 · 0⤊ 0⤋
It depends. If they make all of their payments on time for the length of the loan it will not change your credit score. If they pay late it could result in a negative report being submitted to the credit bureau. You should never cosign on a loan that you could not (or are not willing) make the payments on if the primary decides to quit paying.
2007-03-04 19:34:28 · answer #4 · answered by J D 4 · 0⤊ 0⤋
No not until the payment comes in late or not at all. Then, there is cause for worry. Just make sure you stay on top of the game and he or she makes those payments on time. I have enough bad credit and angry cosigners to know!!! Trust me.
2007-03-04 19:38:55 · answer #5 · answered by Miss G. H. Etto 2 · 0⤊ 0⤋
When you co-sign a note for another it is just as if you had assumed the debt by yourself, for you have actually done just that. The actual effect to your credit score will depend upon timely payments to the loan and the amount taken on. It is NEVER a good idea to co-sign.
2007-03-04 19:35:05 · answer #6 · answered by Dr. J 3 · 1⤊ 0⤋
Your credit score will be negatively affected if the borrower does not honor payments of defaults on them. Co-signing is just as if you borrowed the money yourself. You should trust the person enough to do so
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2007-03-05 09:48:22 · answer #7 · answered by Anonymous · 0⤊ 0⤋
if you ever co-sign,,,,quickly get it away from you,,,this can ruin you,,credit wise,,a co-signer is saying,,,i`m responsible for this debt should the other person neglect to pay,,,so yes,,absolutely,,,it can destroy your credit score,,,,please what ever you do,,,,try to end this quickly,,before it has a profound effect on your life,,,tell the other person,,you wish to get out of this deal,,,or go to the financial institution,,,and tell them you no longer wish to be the co-signer,,,they may take the item back,,,but your credit will be safer.
2007-03-04 19:34:57 · answer #8 · answered by rhardfrumnc 4 · 0⤊ 0⤋
YES!! Your score could take a dive!! Also you must have income to pay the payment on top of your bills in order to do so!
2007-03-04 19:33:08 · answer #9 · answered by javajavgrl 3 · 0⤊ 2⤋
yes it can it they don,t make payments they come after you and your credit in mud so be careful all the best good luck
2007-03-04 20:07:26 · answer #10 · answered by pattibcacl 6 · 0⤊ 1⤋