UPDATE: A paid charge-off has come off two reports!

[Anonymous]

I had ONE derogatory on my reports, a paid charge-off from when I co-signed for my daughter's car.  It is scheduled to come off this month and it has been removed from 2 reports:

Equifax was 728 - score increased 78 points to 806

Experian was 765 - score increased 34 points to 799

TransUnion hasn't updated yet but it also says it is supposed to come off this month.

[llecs]

WOW! Big jump. Congrats on being in the 800 club too!

[Anonymous]

That's great!  Congratulations!

Welcome to the 800 club!!!!

[Anonymous]

Congrats and a question.

Would you co-sign again, or would you view the decision as just business? I ask because my kids aren't too far from the age where I might have to do something like co-signing and I'm not sure what I'd do at this point.

[Anonymous]

Because of my experience, no, I would not co-sign for a car again.  That is strictly my decision, of course.  Also had my daughter come to me that she couldn't make the payments I would have much rather have made a couple of payments than to not find out about it until it was in collection, already affecting my credit, and I had to pay the whole thing off.  Obviously it has taken 7 looooong years to get this off my credit.  I just made over 800 on one score but where would I be had that not been there?  Would I have got a lower interest rate 4 years ago when I bought a house?  Who knows.

Think about it the same as if YOU were buying it.  It will affect YOUR credit and YOU are ultimately responsible for it.  Even though you are ultimately responsible you may not have total control of making sure those payments are made.

I did co-sign for a little $2000 personal loan for my son, mainly to help him start building credit.  It was through my bank, Wells Fargo, and it showed up on my online banking.  I could see all the payment history and it could notify me of each payment.

[Anonymous]

Thanks for the answer. Your point about it bring s business decision is a great one. I have two sons, and would give one credit, and not the other. There age has nothing to do with it. One has simply always been more responsible.

Thanks again!

[marty56]

Nice, very nice.

One the subject of cosigning, I would rather take the loan myself and give the other person money then to cosign a loan.

[Junejer]

Wow! Nice job Pamela.

[RobertEG]

Neat post, Marty!  I like that idea!  That way, you retain control of both the account, and FICO impacts, and the prodigal son/daughter must answer to you directly if negligent in payment commitment! 

The only downside is that you must suffer the FICO hit for a new account that might hurt your AAoA,,,,

but something to ponder.....

[Phoenix-rising]

One of my sons wanted to get a laptop, but couldn't pay for it upfront.  I had an existing VISA card that I wasn't using and I had a zero balance on it.  I purchased the laptop for him using that card.  Every month he sends me the money and I pay toward the card.  Since the laptop is the only thing on the card, it's easy for me to know how much he owes in finance charges, too.  Lucky for him I had an available account to use.