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Should I CO-Sign to someone with bad credit?

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Anonymous
Not applicable

Should I CO-Sign to someone with bad credit?

So I have "Insufficient" credit history.

This may seem like a silly question but i just want to make sure before i do anything.

 

If someone who does not have the best credit score, co-signs for me on an auto loan, will this score reflect on me?

Will this be my starting point regardless of my credit habits?

 

If they make a late payment (although they are co signing me) will that also reflect on me?

Message 1 of 13
12 REPLIES 12
Creditaddict
Legendary Contributor

Re: Should I CO-Sign to someone with bad credit?


@mikemsceo wrote:

So I have "Insufficient" credit history.

This may seem like a silly question but i just want to make sure before i do anything.

 

If someone who does not have the best credit score, co-signs for me on an auto loan, will this score reflect on me?

Will this be my starting point regardless of my credit habits?

 

If they make a late payment (although they are co signing me) will that also reflect on me?


are you talking about if they pay the car late?

if they have bad credit how are they going to co-sign for you or are they asking you to sign for them?

Message 2 of 13
Anonymous
Not applicable

Re: Should I CO-Sign to someone with bad credit?


@Creditaddict wrote:

@mikemsceo wrote:

So I have "Insufficient" credit history.

This may seem like a silly question but i just want to make sure before i do anything.

 

If someone who does not have the best credit score, co-signs for me on an auto loan, will this score reflect on me?

Will this be my starting point regardless of my credit habits?

 

If they make a late payment (although they are co signing me) will that also reflect on me?


are you talking about if they pay the car late?

if they have bad credit how are they going to co-sign for you or are they asking you to sign for them?


No, I mean they will co sign for me.

The reason why even though they have OK credit is because i do not have sufficient credit history.

Message 3 of 13
Creditaddict
Legendary Contributor

Re: Should I CO-Sign to someone with bad credit?

No, if approved anything they do in tier credit won't effect you as long as it's not that car loan!!
Message 4 of 13
Anonymous
Not applicable

Re: Should I CO-Sign to someone with bad credit?


@Creditaddict wrote:
No, if approved anything they do in tier credit won't effect you as long as it's not that car loan!!

Good! Thanks for the response

Was something i was always unclear of.

 

Message 5 of 13
pizzadude
Credit Mentor

Re: Should I CO-Sign to someone with bad credit?


@mikemsceo wrote:

@Creditaddict wrote:
No, if approved anything they do in tier credit won't effect you as long as it's not that car loan!!

Good! Thanks for the response

Was something i was always unclear of.

 


This is true, but remember that your payment history will be reflected on their credit report, so if you miss payments it will damage both your credit and theirs.

 

Also if you were to default they would be liable for the balance / amount due just like you will be.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 6 of 13
Anonymous
Not applicable

Re: Should I CO-Sign to someone with bad credit?


@pizzadude wrote:

@mikemsceo wrote:

@Creditaddict wrote:
No, if approved anything they do in tier credit won't effect you as long as it's not that car loan!!

Good! Thanks for the response

Was something i was always unclear of.

 


This is true, but remember that your payment history will be reflected on their credit report, so if you miss payments it will damage both your credit and theirs.

 

Also if you were to default they would be liable for the balance / amount due just like you will be.


Ok!

Thanks for the heads-up

Although, i have no intentions of entering a auto loan that i am not capable of paying back regardless if the wreck is mine or not.

Plus, its both of our FICOS on the line...

Message 7 of 13
SunriseEarth
Moderator Emeritus

Re: Should I CO-Sign to someone with bad credit?


@Creditaddict wrote:

@mikemsceo wrote:

So I have "Insufficient" credit history.

This may seem like a silly question but i just want to make sure before i do anything.

 

If someone who does not have the best credit score, co-signs for me on an auto loan, will this score reflect on me?

Will this be my starting point regardless of my credit habits?

 

If they make a late payment (although they are co signing me) will that also reflect on me?


are you talking about if they pay the car late?

if they have bad credit how are they going to co-sign for you or are they asking you to sign for them?


My ex didn't meet the income requirement for his auto loan on his own, so I cosigned to get him there.   My credit was pretty bad then, since this was right before my BK.  So a cosigner doesn't necessarily need good credit.

 

Going back to the OP's question, the only mention of the cosigner on your CRs is on this particular TL.   None of their other TLs or history would be included in your CRs.  However, this TL will be reported on the cosignor's CRs.  



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Message 8 of 13
Anonymous
Not applicable

Re: Should I CO-Sign to someone with bad credit?

When i got my car they wanted a co-sig. i told them no. because there would be no deal if i needed a co sig. ended up getting the car without a cosig. but i guess i had a bit more credit history idk 

Message 9 of 13
StartingOver10
Moderator Emerita

Re: Should I CO-Sign to someone with bad credit?


@mikemsceo wrote:

So I have "Insufficient" credit history.

This may seem like a silly question but i just want to make sure before i do anything.

 

If someone who does not have the best credit score, co-signs for me on an auto loan, will this score reflect on me?

Will this be my starting point regardless of my credit habits?

 

If they make a late payment (although they are co signing me) will that also reflect on me?


^^OP, if you are making the payments then you don't have to worry about the co-signer making a payment. However, if you are letting the co-signer make the payment, then you do have to worry.

 

With auto loans the lender is going to always ask for a co-signer if you have insufficient credit history. That is the nature of their business - get as many people on the loan as possible if the borrower shows any weakness in score or income or history.

 

How long is your credit history? Sometimes you can over come a short history with a larger down payment.

Message 10 of 13
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