He needs to change his car but cant get a loan as he has a bad credit rating,we have a good credit rating but my husband feels it may affect our chances of getting a loan.Is there any way we could help without actually borrowing money in our name?Where we would be the guarantor to enable him to get credit for a new car?He really is desperate as he needs a reliable car for work.
2007-04-30 11:37:37 · 14 answers · asked by Big momma 2 in Business & Finance ➔ Credit
If we took a loan out for him in our name and then needed a loan say for ourselves at a later date is there a limit to how much one person can loan?We do trust him,he`s such a hard working chap and we know due to a few late payments with a credit card is the reason for his bad credit rating
2007-04-30 11:58:41 · update #1
You can be a guarantor (co-sign) for your son in-law but
this debt will still show up on your own credit report and is
an obligation because if he does not pay, you will have
to pay. Because of the liability there may be a reduction
of your FICO score
The impact of you and your husband being able to obtain
a future loan is dependent upon how high your FICO score is
and your income to debt ratio. Most banks will give you a
loan regardless of the income to debt ratio if your FICO
score is above 700
Check the link below, there are some handy FICO score
PDF files you can download and if you pay to get your
credit history and FICO scores, there is a page that
you can get to that will allow you to play what if's and see
what the actual impact is, but they are pretty minor
How do I know this, my FICO is over 700, I have 5 kids and
5 cars financed or co-signed in my name
2007-04-30 11:56:01 · answer #1 · answered by justgetitright 7 · 0⤊ 0⤋
if he has a bad credit rating then the whole loan will have to go in someone elses name and they will be liable for the complete loan. If your son-inlaw can still get a loan but requires a guarantor then you can be it, but you will have to make the payments if he doesn't, it depends how reliable he is and if you can afford to make the payments if he can't, I think its down to the lenders to say if they will allow him to have a loan with a guarantor
2007-04-30 11:44:20 · answer #2 · answered by Lisa T 6 · 0⤊ 0⤋
Just remember that if no one will loan him the money without a cosigner, the co-signer WILL end up paying the loan. The best way to help is assisting him to find a CHEAP car he does not need a loan to buy. Giving or loaning money to someone that has not learned to control their finances has been compared to "giving a drunk a drink". In the long run, it does more harm than good.
By the way, YOU can't afford a NEW car either, unless you have CASH lying around. If you did, you would not be asking this question.
2007-04-30 12:35:02 · answer #3 · answered by STEVEN F 7 · 0⤊ 1⤋
Unfortunately by standing as the guarantor you took it on yourself to pay the debt. If your son has paid enough off the car perhaps you can sell to cover the rest of the outstanding amount. . Personally I would not cover for family or friends because you leave yourself wide open. It's a lesson learn't for the future.
2016-04-01 02:49:00 · answer #4 · answered by Anonymous · 0⤊ 0⤋
as guarantors u r not actually borrowing money u r guaranteeing that u will repay the debt should ur son in law fail to do so. This will not affect ur credit rating unless u also default on the debt. It all just comes down to how much u trust him.
2007-04-30 11:43:34 · answer #5 · answered by Anonymous · 1⤊ 1⤋
you can but i think you,d be nuts to do it. the only way he is going to learn how to manage his debt is if he has to live with the consequences. i am speaking from experience. i too have a bad credit rating and just kept spending because i always knew there would be someone there to ease the fall but i am getting better, i am far from perfect, but a lot better than i was. help him in another way. maybe pay to have his car serviced and repaired or pay a few hundred pounds for something a bit more reliable, but if he refuses it may be he just want,s something a wee bit more up to date. if you do help him out make sure it gets paid back even if it,s years later.
2007-04-30 11:55:39 · answer #6 · answered by juicy 2 · 0⤊ 1⤋
If your credit rating is good, you can borrow money for anything, and don't have to divulge who the money is for.
I'd be very careful if I were you. Why has he got a bad rating?
Are you prepared to pay the loan repayments if he defaults?
2007-04-30 11:44:23 · answer #7 · answered by jet-set 7 · 0⤊ 1⤋
At your own BIG risk, bad credit rating due to a few late payments, well thats what he is telling you! So it must be true!
2007-04-30 20:37:43 · answer #8 · answered by brian t 5 · 0⤊ 0⤋
Anyone can co-sign for anyone else if they want to put themselves at risk. On your credit report, it will appear the same as if you took the loan yourself. There is no way around it if you co-sign.
2007-04-30 11:42:16 · answer #9 · answered by Brian G 6 · 0⤊ 0⤋
If your Son in law has bad credit, the only way you would be able to help him is to be co-signers for him, or to put the car in your names and make him the co-signer. Either way you are on the hook.
Unless you can get your own bank to do it and not report to the credit bureaus.
2007-04-30 11:47:51 · answer #10 · answered by ? 7 · 0⤊ 1⤋