If i co-sign a car loan for my friend, will they check my credit (employment and all the stuff), and also do I need to provide all employment history and stuff?
2007-09-08 09:40:51 · 11 answers · asked by Nicky H 1 in Business & Finance ➔ Credit
Without judging your friend or giving unasked for advice I will simply answer your question.
Auto finance is what I do for a living and the answer is yes they will check your credit and verify your employment.
As far as employment history, that will be on the credit application.
2007-09-08 09:51:42 · answer #1 · answered by ? 7 · 0⤊ 0⤋
Yes, they will check everything. When you co-sign, you are held responsible for the loan. If your friend doesn't pay on time, it will hurt your credit.
It is a very, very bad idea to co-sign for your friend, no matter how close you are. Why does you friend need a co-signer? Could it be that your friend has poor credit form not paying bills on time?
Not only is there a good chance your credit will be ruined but you will lose a good friend too. NEVER go into joint debt with anyone you are not married to!!
2007-09-08 16:48:55 · answer #2 · answered by bdancer222 7 · 0⤊ 0⤋
The first answer is absolutely correct. It is never a good idea to co-sign for a friend. If he/she does not make payments or is late on the payments it will effect your credit score. There are too many options out there for purchasing a car. Let your friend take a different route.
2007-09-08 16:51:28 · answer #3 · answered by EvilWoman0913 7 · 0⤊ 0⤋
They check everything when you co-sign for a loan. It's just like taking out a loan for yourself. I don't recommend co-signing for a friend. Very bad idea! Your friend is not the one responsible for the loan, you are. If your friend decides not to pay, you have to. No matter what. And if it gets repossessed, that goes on your credit score. Very bad idea!!!
2007-09-08 16:50:31 · answer #4 · answered by Deedee 3 · 0⤊ 0⤋
Of course they will! You'll be on the loan with your friend and will be FULLY liable for the repayment of the loan if they default. For this reason you must be creditworthy in your own right in order to be an acceptable cosignor on the loan.
This loan will be on YOUR credit record as well as on your friend's. It will affect your creditworthiness for further loans until it is paid in full. If your friend is late with payments, it will drag your score down significantly, even if he or she ultimately makes all of the payments.
I would STRONGLY recommend that you do NOT cosign for this friend's loan! It's the FASTEST way to lose a friendship! If he or she misses a payment, YOU will be expected to step in and take over.
If you ignore this advice, at least make sure that your name is on the title! If your name is on the title, at least you will be able to take possession of the vehicle if you wind up getting stuck with the loan.
2007-09-08 17:14:49 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Yes, you will...but it's a very bad idea to do this. There is a real chance you could get stuck paying this loan if your friend loses his job or some other event. These things destroy friendships. I wouldn't do it unless...
1. This is a life-long friend
2. You know he can pay this back. If he needs you to co-sign I assume his/her credit isn't good.
You're taking a big risk.
2007-09-09 05:50:29 · answer #6 · answered by Anonymous · 0⤊ 0⤋
They'll look for pretty much the same info as if you were getting the loan for yourself. In essence you are, since if your friend doesn't pay the loan, you will have to - you just won't have title to the car.
Be VERY careful about cosigning for someone. A good rule to follow is not to cosign a loan, or loan money to someone, unless you are willing to give it to them.
2007-09-08 18:06:01 · answer #7 · answered by Judy 7 · 0⤊ 0⤋
they will check your credit history and the person you are co-signing for. have them work on their credit I suggest you visit: dundealcreditrepair self help book to save money they have a step by step program to help.
2007-09-08 17:22:15 · answer #8 · answered by DunDee 1 · 0⤊ 0⤋
It is VERY unwise to cosign for a friend. No good can come of it. Yes, they will check your credit and you will be responsible if your friend defaults. It will also affect your credit rating because you will be incurring debt.
2007-09-08 16:46:50 · answer #9 · answered by Suzy 5 · 0⤊ 0⤋
The best way to look at it is you are the CO-BUYER and have the same credit checks and responsibilities as the buyer except for one very important thing, YOU OWN NOTHING.
Laws vary by state but the same ones apply to you as the buyer.
2007-09-08 16:51:04 · answer #10 · answered by ANON 3 · 1⤊ 1⤋