Co-signing on lease agreement

[Anonymous]

I have recently helped a loved one by co-signing on a lease agreement for a vehicle they wanted to get. Their credit wasn't so great, so me co-signing with "Tier 2" credit helped them get a better deal with less money down.

How does it affect my credit compared to if I were leasing a car on my own? I obviously understand the implications of it affecting my credit but does it affect it less since I'm co-signer as opposed to the main borrower?

[StartingOver10]

No.

[Anonymous]

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@Anonymous wrote:

I have recently helped a loved one by co-signing on a lease agreement for a vehicle they wanted to get. Their credit wasn't so great, so me co-signing with "Tier 2" credit helped them get a better deal with less money down.

How does it affect my credit compared to if I were leasing a car on my own? I obviously understand the implications of it affecting my credit but does it affect it less since I'm co-signer as opposed to the main borrower?

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It affects your credit like you were the primary borrower.  So for example, if there is a late payment, it will affect your credit as if you defaulted on your own.

[StartingOver10]

Thank you Yes-Its-Me, I was a little brief on my answer

[Appleman]

Even one 30 day late can really hurt even solid credit. I know with Chase (Chase is the Subaru captive finance) my payment is due on the 12th. I set up my automatic payments for the 7th. That way the payment always arrives before it is due and gives me a cushion of time if something got screwed up in the process.

You may want to consider a similar deal to ensure the lease is being paid on time.

[Anonymous]

Have the person your co signing for open a new checking account and give u access to it so u can make sure money is being transfer to pay car note