I've become a co-signer for $20000 student loan for my son, who's not a US citizen or permanent resident yet.
I have a perfect credit history and mortgage free properties. I'm planning to sell them off and move to California, buy property there. And I will need a big credit line.
Is being a co-signer decreases the amount I can borrow in the future? Thank you.
2007-09-05 13:26:45 · 2 answers · asked by T G 1 in Business & Finance ➔ Credit
Your 20K debt will decrease the additional amounts you can borrow. When two people cosign a loan both owe the whole amount they don't divide it.
2007-09-05 13:47:27 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
If it goes into default or has any late payments it will destroy your credit. You will be liable for those plus all the fees that got levied before you found out that your son was being irresponsible and started picking up the payment.
Other than that it shouldn't affect anything.
2007-09-05 13:39:58 · answer #2 · answered by contemplating 5 · 0⤊ 0⤋