Question about co-signing.

[NikoD]

I just thought I'd add my 2 cents even though everyone else has it covered. Don't do it, don't do it, don't do it! I'm sorry but I feel she can drive around in an old crappy car she pays cash for until either she or your son is able to get a loan on a better car. I have excellent credit but I'm perfectly happy driving around in my old reliable 15+ year old Toyota. I don't know the specifics of her situation but I wonder why she needs this new car right now. If you do decide to co-sign anyway, I would suggest you make arrangements for you to be able to verify that the payment is made each month and be willing and able to make the payments yourself if she flakes out and doesn't pay. Even if you know your son's fiance really well I'd still be very cautious.

[bobkmn]

Thanks to all of you who responded to my question. Although I am sure that you had my best interest at heart, I am not the least bit concerned about my son and his future bride defaulting on the loan. He is 40 and has had a good job includiing promotions for about 15 years and his fiance is around the same age and has a good job as a mechanical engineer with a global company. She is being promoted and transfered to another position. And, in December 2012 my wife and I co-signed for a $1200/mo annual lease for him. He fulfilled the terms of the lease and they allowed him to renew w/o a co-signer. 

I was really only concerned about the impact of my co-signing on an application for a credit card--namely the Discover it or the Citi Simplicity cards. I have received 'pre-approval letters from both. Perhaps I can just apply before I co-sign. A bit off topic, but does anybody have a choice between these 2 cards?  If it matters, my FICO score is 708.

Thank you again.

[NikoD]

Ok, I understand better now why you are willing to trust her. I was thinking more along the lines of a couple of 20 something kids with unstable employment. BTW both of those cards are listed in the myFico credit card center as being for people with excellent 720+ credit. I can't give you advise on which one to go for (maybe someone with a Fico of less than 720 who got one of those cards could chime in) but I think you should apply before your scores take a hit with a brand new loan.

[bobkmn]

Thanks for your note and your better understanding of their situation. I already have had folks on here tell me that they got CLs way above what I am looking

for with FICO scores around 670-690. They are over in the Credit Card section of the forum if you want to read them and then let me know what you think,

I am very impressed with the amount of help and good information I am getting here.  :-)

[NikoD]

I'm pretty new around here and would't want to stear you in the wrong direction. I have read about people with short credit histories getting a Discover but I can't really say if that is the way to go in your case. If you haven't already, maybe you should ask over in the credi card area about which card you should go for. I'm sure they will want more info on your situation though (e.g. length of credit history, bankruptcy, etc) to give you the best advice. Good luck.

[bobkmn]

Thanks. Not really sure you understand my situation. I do not have a short credit history.

i am 67 years old and have had cards most of my life. Had a few bumps a few years ago and am rebuilding. My FICO is 708 and I am just trying to find the best card to apply for to transfer balances from 2 unsecured cards. Thanks for your thoughts.

[NikoD]

Yes, I figured you must be in your 60's to have a kid around 40. I just did't know what your situation is because some people just use debit cards so they have no history with revolving credit. You also mentioned working on improving your credit so I wasn't sure if that meant some late payments or if there was not much in your file.

One of my old, closed CC should still be reporting (it was only closed about 5 or so years ago) but it is not on my credit reports. It would help my average age of accounts if it was still there because it was opened around 1999 or 2000 but I can't get it reported because Cap1 can't even find a record of the account in their system. Even if you've had credit in the past it doesn't mean it will show up now and after accounts have been closed for 10 years they vanish anyway. Details like the age of your oldest account and the average age of all your accounts may help in deciding which CC would be most likely to approve you.

[Anonymous]

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@bobkmn wrote:

Thanks. Not really sure you understand my situation. I do not have a short credit history.

i am 67 years old and have had cards most of my life. Had a few bumps a few years ago and am rebuilding. My FICO is 708 and I am just trying to find the best card to apply for to transfer balances from 2 unsecured cards. Thanks for your thoughts.

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I would suggest starting a thread in the CC board about what you are looking for.  They will be more than glad to help and all are very knowledgable.

[bobkmn]

Yes, I had not planned to have this discussion here.

Thanks!

[mrgoattoo]

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@Gunnar419 wrote:

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@bobkmn wrote:

I am working hard to improve my credit score and it is currently 700+. My question is this, my son has asked me to co-sign for a new vehicle for his fiance. She just went through a divorce and her ex screwed things up and messed up her credit. The problem has allegedly been fixed, but her credit is still low. I know that they can make the payments so I am not concerned about that--I am just wondering if my co-signing will negatively affect my FICO score by adding additonal liabilities to my finances?

Thanks for any help I can get.

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No matter what it does or doesn't do to your score in the short term, the tales of people who've been burned by co-signing are many and heartbreaking. You know your son's fiancee CAN make the payments. But WILL she? What if they break up and she decides to get back at him by burning you? What if she loses her job? What if she gets sick? What if, what if? If she quits paying for ANY reason, you get stuck with all the lates, with the repo, with the responsibility for paying any shortfall after the vehicle is auctioned off. Nightmare City.

I also don't trust the phrase "The problem has allegedly been fixed, but her credit is still low." If the problem has really been fixed, then why is her credit low? Why is your son asking YOU to co-sign, rather than doing it himself?

Sorry, I hate to sound like a grouch, but I've seen too many people whose good credit has been destroyed by co-signing. Unless you have some really, really strong reason to do this, and unless you have solid knowledge that the fiancee's finances and character are both golden, I wouldn't touch this situation.

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What he said.

Ive worked very hard to get my credit score where its at. Years as a matter of fact. Im not risking it hoping someone else will pay their bills on time.
If it were me Id' tell the son to have his fiance look for a car where she can get financing. It'll cost more but if she needs a car she'll do what she has to do to get one.