Can I use help from a cosigner on auto loan to build/repair my credit?

[Anonymous]

Hello,

I'm new to myfico and on a journey to rebuild/repair my credit through some of the advice discussed here and from other sources after making some mistakes in the past. I'm currently using only revolving credit which doesnt help my score. Does having someone to cosign on an auto loan because of my poor credit help to build/repair my credit history at the same time that it's on their record? I would also appreciate any advice on the decision to find a cosigner for the fixed installment loan.Thank you!

[guiness56]

As long as the car loan is in both of your names, then yes, it should help.  Keep in mind that means making your payments on time every month.

It works both ways though.  If you miss a payment, are late etc, this will impact the person who co-signed for you also.  It will go against both of your credit.  If you default they can sue you and the cosigner.

Personally, I would not co-sign for any one, especially a family member.  I have done so in the past and am paying for it now. 

If you are looking to clean up your credit, the first thing to do is get copies of all your CR here:  https://www.annualcreditreport.com/cra/order.

List the negatives, leaving out personal information, and someone will reply with advice.

In the mean time here are a few starting points for reading:  Credit Scoring 101 - by Tuscani   Guide to Common Abbreviations  and  Other Frequently Requested Threads

Welcome to the Forums!

[Anonymous]

Thank you very much guiness56 for your advice/response. I'm still debating whether finding a cosigner would be best at this point. I was an international student here in America and most of the mistakes I made were really made without any knowledge of the consquences. Now I'm learning gradually about how the U.S. credit system works and really wish I knew some things sooner. I've been all over the forums this week finding information to help and browsed the links you provided. I now have my 3 credit reports and my fico score and I also signed up for score watch and the simulator has been helpful in seeing the effects various actions would have on my score. I'll be posting it up on one of the rebuilding credit board for people's advice as well. Thank you again!