Co-signing for someone does that affect your credit report?

[Anonymous]

I was going to co-sign for my brother on a car... will that affect me when I go to by my next car?   Will it show i have another car loan?

[Anonymous]

It sure will and if he doens't pay it will mess up your credit also.

[MidnightVoice]

It goes on your credit report as you are liable for the loan.  So do the results - good or bad!

[Anonymous]

Also, if you co-sign, you may not be able to get a car loan for yourself.  The lender may think that you have too much debt, because they consider your brother's car loan to be your loan as well.

[DallasLoanGuy]

As far as scores are concerned. It will report just as if it were your loan alone.

[MattH]

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@Anonymous wrote:

I was going to co-sign for my brother on a car... will that affect me when I go to by my next car? Will it show i have another car loan?

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Can you afford to simply buy a car yourself, keeping a key and title, then rent it to your brother under terms that make it clear if he fails to pay you the agreed amount then you will take the car back and sell it? If you keep title then you still face the risk of losing money but you don't face the risk of having your credit trashed on a car you do not own and therefore cannot sell.

Just about every personal-finance expert in the media -- print media, radio, online, whatever -- regularly hears from people who are in major major major trouble from co-signing loans.

At the absolute minimum you need to make sure you have a way to verify every payment made to the lender so that if your brother falls behind (as he very likely will) you can intervene before your credit gets trashed.

There must be some reason why nobody is willing to make that loan to your brother, or he wouldn't need your help getting the loan.