Any loans that dont report on cosigner? Or let the cosigner go after a year?

[Brianinpa18330grh]

I once heard of an auto loan that let the cosigner off the loan after a years worth of ontime payments. Is there any that dont report on the cosigners credit report? I want to cosign for an employee but dont want it to affect me credit. Thanks

[HoldingOntoHope]

The only way that most banks are going to release the co-signer is through a refinance and paying the original loan in full. And unless the bank does not report the loan for either party it is unlikely to not report the co-signed loan. Remember you are accepting FULL responsibility for the loan. And if it goes bad then you will also be hit with the derogatory information.

Rather than co-signing for someone it would be in your best interest to be the primary borrower on the loan and let them be secondary. That way you have full control and knowledge that the payment is made. You can have the car titled in a way that they gain ownership or a legal agreement that it is theirs upon successful completion of the loan. If you are unwilling to trust them to make payments to you with you as the primary borrower then you shouldn't be co-signing either.

If you use co-signing a loan as a search term you will find countless stories of how it went wrong just on these forums. If the lending institution thinks it is a risk not worth taking then what makes you think you are smarter financially than them? I know we want to help people and think the best of them but sometimes helping them is best done by saying "No, I won't let you get into a bad deal."

[Elcid89]

I'm not aware of any scenario where you can co-sign a loan and not have that event report on your CRAs. What effect that will have your credit / score obviously depends on what they looked like before the TL gets added.

Best advice for co-signing a loan is never to co-sign a loan that you aren't prepared to pay for. It is seldom a good idea.

[bahbahd]

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@HoldingOntoHope wrote:

The only way that most banks are going to release the co-signer is through a refinance and paying the original loan in full. And unless the bank does not report the loan for either party it is unlikely to not report the co-signed loan. Remember you are accepting FULL responsibility for the loan. And if it goes bad then you will also be hit with the derogatory information.

Rather than co-signing for someone it would be in your best interest to be the primary borrower on the loan and let them be secondary. That way you have full control and knowledge that the payment is made. You can have the car titled in a way that they gain ownership or a legal agreement that it is theirs upon successful completion of the loan. If you are unwilling to trust them to make payments to you with you as the primary borrower then you shouldn't be co-signing either.

If you use co-signing a loan as a search term you will find countless stories of how it went wrong just on these forums. If the lending institution thinks it is a risk not worth taking then what makes you think you are smarter financially than them? I know we want to help people and think the best of them but sometimes helping them is best done by saying "No, I won't let you get into a bad deal."

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My initial response to the OP was going to be along the lines of "Your business could buy a vehicle for employee use."  I do like the scenario that HoldingOntoHope outlined above. You may want to look into the business buying the asset instead of you personally taking on the auto loan. It is just a though since I envision additional incentives to keep it as a business asset. Then the question is, "How is the car insured" and "How is the employee (secondary?) driver insured?"

[HoldingOntoHope]

I hadn't thought of the business owning the car! I have no experience in that area so I don't know if that would be a good idea or not. I would guess if they talk to their tax advisor and insurance agent for the business then they could help in the decision.