My husband wants to co-sign a loan for his cousin. How could this affect MY credit in a negative way? I have good credit and don't want it ruined.
2007-12-06 07:23:11 · 13 answers · asked by kimbakererie 4 in Business & Finance ➔ Credit
My husband feels that because he is going through aa and trying to turn his life around he should be given another chance
2007-12-06 14:19:14 · update #1
It will not affect your credit, it will affect your husbands.
When you co-sign for anyone you are saying if the other person doe's not make the payment's, I will.
This can be good or bad for your husbands credit, if his cousin makes all of the payments as agreed your husband wins, if on the other hand if he doe's not your husbands credit can get really messed up and he could get stuck with paying the bill.
Never co-sign with anyone that you are not married too.
Additional information.
No matter what some people say, your credit is not linked to your husbands, if his goes bad it doe's not take yours with it.
Individual credit is just that individual, the only time credit gets affected is when people co-sign and even then the only affect is based on how the account is paid.
2007-12-06 07:27:51 · answer #1 · answered by ? 7 · 4⤊ 1⤋
Keep this in mind when deciding to co-sign...If they could qualify on their own they wouldn't need a co-signer. Why can't they qualify on their own? If they didn't pay their bills before what makes you think they will pay them now? You can't squeeze milk from a tree (or whatever that saying is). If they can't make the payment what will you do? Will they tell you? Will you get the statement each month to make sure it is paid? Can you afford to cover the payment if/when they can't? Ask your husband these questions?
Remember one day over 30 days late affects your credit, one day past the due date will probably be a late fee, who and when will that be paid. Discuss all these things before co-signing. Sometimes it could really help someone out, but don't do it if it is not a joint agreement.
2007-12-06 10:47:19 · answer #2 · answered by tgllvor 1 · 1⤊ 0⤋
NO DO NOT DO IT RUN DON'T WALK AWAY FROM THIS, BETTER YET LOAN THE COUSIN THE MONEY IF YOU HAVE IT BUT DON'T EVER NEVER COSIGN. They don't make a payment not only are you repsonsible, your credit will drop so quickly you will think it went down quicker than the Titantic. Talk about family problems, think about what it will do if this happens. I wouldn't even cosign for my daughter, lent her the money and made her pay it back for a purchase of a new car, didnt want my excellent credit damaged if she was late. I have seen all to many family scenarios where someone went to buy a home or car only to find out that the family member had been late and the cosigner never knew. Even had one customer who's niece had the car repoed, and the only way the bank would close his mortgage as he claimed she forged his signature was if he took out a warrant for her arrest. Don't think she did but he tried that line and the bank would not buy it. Seriously don't do this it will come back to haunt you.
2007-12-06 07:31:43 · answer #3 · answered by donald e 4 · 3⤊ 0⤋
Your credit score is linked to your spouse's. If his cousin do NOT pay the loan, both you and your husband's credit will go down, unless your husband is willing to pay for his cousin's debit. I would NOT suggest you letting your husband co-sign for ANYONE, not even a relative. Think about it, why do they need a co-signer from the very beginning? No credit , or bad credit?
2007-12-06 09:03:19 · answer #4 · answered by Anonymous · 1⤊ 1⤋
Tell your husband to keep his hands in his pockets and sign NOTHING of the sort. If his cousin were creditworthy, he would not be needing any sort of co-signer. By co-signing, you agree to pay anything upon which the cousin defaults. Do you REALLY want to pick up those payments should the cousin not make the payments ?
2007-12-06 08:22:56 · answer #5 · answered by acermill 7 · 1⤊ 0⤋
Dont do it, you'll be sorry.
I got burned co-signing for a car, it almost cost me my marriage. My wife talked me into co-signing a loan for a person in her family and he paid the note for about 5 months and then he quit paying.
Just because you co-signed for it doesn't let you confiscate the vehicle if they don't pay.
Your basically screwed if they don't pay.
My experience cost me my credit rating and a little over $4,200.
2007-12-07 16:24:05 · answer #6 · answered by Joker 1 6 · 0⤊ 0⤋
It WILL effect your credit if the cousin is late on a payment.
The cousin has bad credit for a reason. Your husbands credit is your credit and visa versa. Don't let him do that to your credit.
2007-12-06 07:32:48 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Spifiman and Acermill are both correct. It's good advice and advise your husband NOT to co-sign. If the cousin should default, it will destroy your husband's credit (not your credit) and it could destroy your marriage. Never co-sign for anyone unless they are your spouse.
2007-12-06 09:06:54 · answer #8 · answered by Anonymous · 1⤊ 0⤋
Never
Sell anything to
Go into business with
Lend money to
Cosign loans for
Relatives
2007-12-06 07:27:19 · answer #9 · answered by Fuzzybutt 7 · 5⤊ 0⤋
dont let him!
relationship with him and you will suffer
not to mention the possibility of your credit suffering too
2007-12-06 07:26:40 · answer #10 · answered by caretaker 5 · 2⤊ 0⤋