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Don't co-sign for anyone as hard as this sounds

antredd67
Contributor

Don't co-sign for anyone as hard as this sounds

    Everyone one from my mom, sister, best friend, mother in law, wife, and myself have co-signed for friends and family members.  All of us have gotten screwed when the people that we helped were late paying back the loans or didn't tell us that they couldn't pay back the loan letting it go into collections.  As hard as this sounds and probably to many as cruel as this sounds, don't stress yourself out, and lose your great credit rating that you have worked so hard to have by co-signing for someone.


Message Edited by antredd67 on 04-15-2007 07:52 AM
Message 1 of 9
8 REPLIES 8
TheNewWorldMan
Valued Contributor

Re: Don't co-sign for anyone as hard as this sounds

I would have to agree.

Help the person come up with the down payment, yes. Help them with the payments if they fall on hard times and have otherwise been responsible, yes. Co-sign, no.

For Christians here, the Bible warns against providing surety...to (perhaps slightly over)simplify, that's co-signing.
- - - -
in a credit-scoring postnuclear Stone Age...
Message 2 of 9
Brammy
Moderator Emeritus

Re: Don't co-sign for anyone as hard as this sounds



antredd67 wrote:
    Everyone one from my mom, sister, best friend, mother in law, wife, and myself have co-signed for friends and family members.  All of us have gotten screwed when the people that we helped were late paying back the loans or didn't tell us that they couldn't pay back the loan letting it go into collections.  As hard as this sounds and probably to many as cruel as this sounds, don't stress yourself out, and lose your great credit rating that you have worked so hard to have by co-signing for someone.


Message Edited by antredd67 on 04-15-2007 07:52 AM

 
Yep caused a huge rift between me and my daughter that I refused to co sign on a oan for her.  I simply told her I do not co sign for anything I can't afford to give away.  Didn't sit very well.

Message 3 of 9
antredd67
Contributor

Re: Don't co-sign for anyone as hard as this sounds

Brammy,
 
   Excellent decision you made.  I am teaching my 16 y/o son now that nothing comes free. So work for it.
Message 4 of 9
Brammy
Moderator Emeritus

Re: Don't co-sign for anyone as hard as this sounds



antredd67 wrote:
Brammy,
 
   Excellent decision you made.  I am teaching my 16 y/o son now that nothing comes free. So work for it.


 
Hey, my mom won't even give AU status...Smiley Very Happy

Message 5 of 9
Noah_Bodie
Senior Contributor

Re: Don't co-sign for anyone as hard as this sounds

I've seen far too many financial deals between family members go south--in both mine and my wife's family. Buying homes, buying cars, and even lending money. As such, we are adamant. We don't lend to family, we don't co-sign for family, and if the opportunity presented itself, no matter how good of a deal it was, we wouldn't go into business with family.

 

We've been hit up by family for money a couple of times. Each time, wife and I talked about it and both concluded, "Ya know, if we lend this money, we are pretty much giving it away as we won't ever see it again?"

 

If we're both OK in giving a gift, then we do it but still call it a loan. That way, with one loan "still outstanding", that borrower won't ever hit us up again for another loan. In that regard, it's worth it to gift away a few hundred bucks so as to avoid being asked again in the future.

 

The B.S. story is always, "I need money to pay the rent or feed the kids", but it always turns out to have been for a boat, a truck payment, some lame-brained "business venture", or other rathole.

Message 6 of 9
goingtobefree
New Visitor

Re: Don't co-sign for anyone as hard as this sounds

Amen to that!  Even if they do pay the loan on time, it still can hurt your credit.  My score dropped almost 30 points 4 years ago when I co-signed for my daughter's car loan.  A co-signed loan is considered risky.  My daughter was never late with her payments but when the car was paid off, my credit score went back up.  I had no idea that just having that loan on my report would affect my score, but it did.  Never again.
Message 7 of 9
jaybee
Valued Contributor

Re: Don't co-sign for anyone as hard as this sounds

Antredd67,
It does sounds a little harsh, but it is true. My closest cousin (used to be) is not speaking to me now because I would not co-sign for a car. I know her history and if she didn't and still doesn't take care of her credit why would I think she would take care of mine.
People that don't care about credit don't seem to know why others actually care.
I would have to agree %100 on this thread.
My friend even co-signed for his brother's car and is showing 16 30 day lates and 3 60 day lates on a 36 month loan-- that means he was late 50% of the time.
If at first you don't succeed... hang up and try again!!
Message 8 of 9
bae
New Member
New Member

Re: Don't co-sign for anyone as hard as this sounds

AMEN-Proverbs 22!
Message 9 of 9
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