Adding My Name to Family Car Loan to Build Credit

[Anonymous]

Hi all,

I'm in the process of repairing my credit. I've taken steps to write Goodwill letters and fix everything.

My mom has a few thousand dollars left on her auto loan. Both of our credit scores aren't great. But, I was thinking of helping her with pay half of her remaining loan. So, each month I would give her half of the month of the car payment to offset some of her costs. In return, I was thinking why not add my name to her auto loan and try to build credit while I help her make payments. This is her last year of a 5 year loan. 

Can adding my name to her loan hurt me in anyway? Is it a good idea to add my name to build credit? 

What can I expect the auto loan company to say? And what will happen once the auto loan is paid off in full?

Thanks

[Anonymous]

I don't think it would be that easy to just add your name to the existing car loan; not the same as becoming an AU on a credit card.

With the car being in its' last year of 5, I would think the amount paid off by now should be helping your mom.  When the car is completely paid off though, her score will take a dip if she doesn't have any other type of active installment loans reporting

[Anonymous]

Many thanks for the reply.

I was thinking then it probably would not be worth the hassle of trying to get the name on the auto loan. Unfortunately, this is a cycle in the fam to be irresponsible with finances and I am so sad because I have a brother who has truly been bane to our families financial existence. For private and personal reasons I don't wish to write in length about those circumstances.

I'm just trying to get back on my feet and become financially independent. 

You mentioned AU. Is there a lengthy page where I can learn about this process and also the contigencies that go along with becoming an AU on a family card?

Appreciate your time and help.

[RobertEG]

A loan is a contract agreement between the consumer and the creditor.

One party cannot simply modify terms of a contract.

To add another party will almost always require the creditor's consent to renegotiate the loan contract by adding another party.

That is, in essence, refinancing the loan.

You would need consent of the creditor.

[Anonymous]

That was the goal. To contact the creditor.

[Anonymous]

This forum is pretty old but i just signed up and i wanted to answer it. the simple answer is yes adding your name to a car loan will help your credit, the same as making you an authorised user on a credit card. the thing is the car loan is much better because its an instalment loan and that carries more weight than a credit card. its better to have a mixtures of loans on your credit history, not just credit cards. that being said the only way to do that is to refi'd the loan, which may bring additional fees and may change the terms of the original loan. Coinsidently Adding yourself to a car loan can hurt your credit. lets say that person is consistantly late with payments, that will also fallow you to your credit which in turn will lower your score. i hope all this helps you or anyone else who was wondering!