Co-signing

[Coqui258]

Hey everyone... quick question. My friend needed a car, so he found a 2000 VW Passat, but he didn't have enough credit to apply. He asked me to co-sign just until his loan clears so he can take me off, so I agreed and went in today to sign. I'm aware that if he doesn't pay they come after me, but I'm not worried that he won't pay, or he'll have a few missing fingers (sike nah). But anyway, what does this mean to me? Does this affect me in any way? i.e. credit, etc?

 

[Coqui258]

Bump

 

[Gbourdon]

I don't know how it affects your debt to income ratio but if he doesn't pay then they will come after you. I have a friend who cosigned for somone on a new Jeep Cherokee and the kid never made one payment on it. Even after they repoed the car they still were on his ass about it. He eventually got it resolved but I think it may have hurt his credit.

 

[noclue119]

I worked for equifax... don't co sign that s***... if he does not pay you are held responable.. Tell him that you checked your credit and due to your installment(car loan) it would be useless if you co-signed it.

and if he has bad credit why u helping him co-sign that stuff anyways. that just means that he does not pay on time and if he does nto pay on time it shows up in ur credit report.

 

[Coqui258]

but he's getting a loan from the bank to pay for the car... after getting that, would I be able to just get off and be free from all responsibility?

 

[bretdajet]

I co-signed for my lil sis and that debt is considered to be mine as well as hers. Each time I have my credit run her car is figured in to my score. I would recomend not to do it. I will never do it again.

 

[JOS3]

it will affect your credit score negatively or positively (depending on if he pays or not)

i dont know what the laws are in your state, but here in wisconsin, co-signers are considered co-owners. meaning that if you lived here, and he didnt make a payment, you could take the car and sell it without his permission. this is not the case in illinois however. in illinois, both parties have to be present during any transactions.

 

[MazdaspeedNJ]

1) he pays for the car on time and complete...............your credit gets better

2)he doesn't pay for the car on time/possible reposession........your credit gets worse and guess what......they come to you for the money.......

go ask my grandmother about that one.......
she co-signed for me back in the day.......i lost my job and got my 1995 Accord reposessed.....i still owed $11,000 on it....they sold it at an auction for $6,000....i got stuck with a $7000 claim against me from Honda for the balance of the loan and storing/recovery fees.....i told them to **** off for 2 years.......they bothered my grandmother/co-signer for a while...then it went to collections for a year.....finally i started to pay on it.... i pay 100 a month now for it.....i still got about $5,000 to go for a car i don't even have....blah.

don't co-sign.........