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Fixing past mistake due to co-signing a loan

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Anonymous
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Fixing past mistake due to co-signing a loan

 I have a question for anyone who has experience or some knowledge. 6 years ago I co-signed an auto loan with a relative (4/2008). It was a 3yr lease for a new car and I was young with very good credit and I helped her. Unfortunately, payments were not being made on-time and I remember receiving a phone call from the creditor regarding the issue when it was time for the last payment to paid (4/2011). As you could imagine, I was irate because there was a large unpaid amount that I had to fork up to pay and close the account. Years later, I truly realized the negative effects of co-signing a loan with someone. To this day the only negative marks are the 10 late payments (2 past 60days, and 8 past 30days). Fortunately, my credit score is mid 700s, but could be a lot higher. 

 

I recently contacted the lender to request that I would be "forgiven" for some of these late payments" (due to the fact I was just the co-signer and not the account-holder). I am currently waiting for a response. Does anyone know what other things I could do to lessen the damage to my credit score? I was thinking of writing letters to each credit bureau explaining my situation in hopes of them forgiving some of these inquiries or removing my name of the original account, if possible. Any advice would be truly appreciated! Thx in advance.  

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kingkai1990
Contributor

Re: Fixing past mistake due to co-signing a loan

I think the GWs are your best bet. You could open other lines of credit, but you'll still have those lates damaging your score. 

 

Co-signing sucks because you have all the liablity and can get screwed (like you did) in the long run. Something needs to change where if the co-signer renigs, then you shold be able to get an extra boost on your credit score. I know people will say ''you signed a contract'' but there was also a mutual contract between you and the cosigner: trust. 

 

In your letters you should definitely emphasize the fact that you mad those payments and have proof. 

Message 2 of 4
Anonymous
Not applicable

Re: Fixing past mistake due to co-signing a loan

As far as fair credit scoring and co-signing goes, I don't think it makes much sense for the cosigner to have the poor payment history of the primary responsible person on their credit report. It doesn't say anything about their own habits. A much better system would be for the lender to notify the cosigner that the other person has not made timely payments and that now they want money from the cosigner--and then payment due dates and whatnot begin for the cosigner. That way, cosigners are only judged based on their own behavior in repaying they loan (which they did after all agree to do) and not others'.
Message 3 of 4
bdhu2001
Valued Contributor

Re: Fixing past mistake due to co-signing a loan


@Anonymous wrote:
As far as fair credit scoring and co-signing goes, I don't think it makes much sense for the cosigner to have the poor payment history of the primary responsible person on their credit report. It doesn't say anything about their own habits. A much better system would be for the lender to notify the cosigner that the other person has not made timely payments and that now they want money from the cosigner--and then payment due dates and whatnot begin for the cosigner. That way, cosigners are only judged based on their own behavior in repaying they loan (which they did after all agree to do) and notothers'.

I agree.  I've been burned by co-signing and it's taught me never co-sign. Unfortunately, the most you can do is GW and hope they delete it.  Other than that, it takes 7 years for the payment to come off. I understand that the CFPB is trying to change some of these issues.

 

Good luck on your GW letters.  I would say keep sending them until they delete them.  Fortunately you still have a good score and your score will continue to improve (if you keep making timely payments) over the months and years. 

Original Mortgage maturity Sept 2044; Refi maturity Dec 2030
Starting Score: EX 751 EQ 720 TU 737 on 4/9/14
Current Score: EX 849 EQ 835 TU 843
Goal Score: 850


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