i have 700+ credit now, but when i cosign my friend with no credit score to get his car, do my credit go down by half or something? so whenever i apply for something else like a phone line, will other people will see my credit lower?
2007-06-26 08:55:18 · 5 answers · asked by Mr. Questionair 2 in Business & Finance ➔ Credit
DO NOT DO IT !!!!
First of all your credit score will be impacted. This will make an inquiry on your credit report and show more debt on your credit report.
I know you want to help your friend out, but cosigning is not recommended. Your friend could experience an emergency and not make a payment and now you will have a late on your credit report that will never go away. Or worst, say they can not pay for this car any longer and the car is repossesed. Your credit will be ruined!!
2007-06-26 10:40:44 · answer #1 · answered by Journey 3 · 0⤊ 0⤋
Not so much in answering the question. I believe that has been done already. Just a comment about co-singing. Not everyone that needs a co-signor is going to renig on their loan, think about it like this if you are a good enough friend then why would you want to mess that persons credit up, I would never ask someone to co-sign if I didn't have every intention of paying the debt on time and in full. I understand that something could happen unexpectedly but that is not likely. I am just tired of hearing nothing but negative about people co-signing for friends and that they should NEVER do it. There are some of us good people out here that would never do anything to hurt someone we call friend. Sorry had to speak out.
2007-06-26 17:18:53 · answer #2 · answered by beachbum44 1 · 0⤊ 0⤋
Auto finance is what I do for a living and co-signing for someone to buy a vehicle doe's not affect your credit at all except to increase your credit to debt ratio which will affect your score a little depending on how much debt you already have.
If your friend makes his payments on time every month it will help both of your credit scores conversely if he doe's not make his payments on time both will suffer and you may find yourself in the position of having to make the payments to ensure that your good credit doe's not suffer.
Think about this very hard before you do this. You may end up buying the car yourself. Not trying to judge your friend, simply pointing out what could happen.
2007-06-26 16:48:34 · answer #3 · answered by ? 7 · 0⤊ 0⤋
You just bought yourself a car.
Caution, caution, danger, bumpy road ahead. Never, never, cosign for anyone. One exception, a husband.
He needs your credit because he has expensive tastes and no credit or money. Read the danger signal here. What is he driving now ? Let him keep it until he gets a job, good credit, unless you want to play Santa Claus. You can't buy love. He will play you like an ATM .
In a few months if you break up, you will have two cars and one big headache.
2007-06-26 16:14:07 · answer #4 · answered by radar 4 · 0⤊ 0⤋
Why on earth are you considering co-signing for a friend to get a car ? Do you comprehend that, in doing so, you are accepting full financial responsibility for the financial contract and that, if he defaults, they will come after YOU for the amount owing ?
This is NOT a wise thing to do.
2007-06-26 16:39:31 · answer #5 · answered by acermill 7 · 0⤊ 0⤋