If you cosign for a $10,000 loan for someone will that affect your credit 3 months later for a car loan?

Answer 1

Yes it will. If you seek to finance your own car loan, it will show up on your report. The lender will take that debt into consideration...even though you only co-signed, you will be responsible if they default.

Answer 2

Being from Canada, I can only give you my answer based on Canadian rules but I assume they would be the same anywhere. When you cosign a loan, you are also taking on the debt, to a point, because you are responsible for that loan if the other person defaults. As a result, I would think that your loan company would include this in your debts owing.

Answer 3

Of course! It will show up on your credit record as if you had taken out the loan yourself. Whether or not it will affect your ability to get the car loan will depend upon your overall credit profile and debt load.

Answer 4

Yes, it will effect your report until it is paid. When creditors look at your credit, one thing they look for is debt to income ratio. If you cosign this, now your debt just became 10k more. Now you may not qualify for the car loan because you have too much other debt.

Answer 5

This will be on your (credit) history so it will always affect you (forever) meaning that you might have a harder time to get one (if) you do not pay this on time (or if the other person does not as well) [as this cosign is a 'partnership'].

Answer 6

It may well affect your ability to obtain future credit, since you are now legally and financially responsible for this $10,000 debt if the person for whom you co-signed happens to default.

Answer 7

It can actually affect your credit within 30 days if the creditor reports it every month.

Answer 8

only if they mad some late payments