Should I do this?

[Anonymous]

My dad wants to purchase a car, but had an event occur where he was charged off for not paying an ambulance bill that should have been covered. He wants to make the car purchase under my name. I know 100% all monthly payments will be fulfilled, but I just graduated college not too long ago, have over 100K in credit lines, and looking to apply to grad school. If I let him use my credit to make the car purchase, are there any chances of me not getting loans or having my future loans be subjected to higher interest rates, or any other negative repercussions? I have almost 0-2% utilization at any given time if that factors into anything.Thanks.

[Anonymous]

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@Anonymous wrote:

My dad wants to purchase a car, but had an event occur where he was charged off for not paying an ambulance bill that should have been covered. He wants to make the car purchase under my name. I know 100% all monthly payments will be fulfilled, but I just graduated college not too long ago, have over 100K in credit lines, and looking to apply to grad school. If I let him use my credit to make the car purchase, are there any chances of me not getting loans or having my future loans be subjected to higher interest rates, or any other negative repercussions? I have almost 0-2% utilization at any given time if that factors into anything.Thanks.

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What exactly do you mean by 'let him use your credit'?  Are you talking about buying the car in your name and let him have the car and repay you?  If so just remember you are the one responsible for the payments and if he stops paying you back and as a result you default on the auto loan, then it for sure will affect your credit.

[IncrsCreditScore1]

You have no guarantee that the car loan would be paid by the due date every month; you may have his word that he will pay every month, but you have no guarantee.  It is hard to believe that his FICO score will not support a car loan in his own name if the ambulance bill is the only one charged off.  Have you actually seen his credit report?  I would be very hesitant to get a car for him under your name - you would be responsible for not only car payments, but insurance bills, car taxes, etc.  I know it is hard to say no to your Dad, but that is the best thing for you to do IMO.

[Gunnar419]

I know it's tough to say no to your father, but really you should.

If the only baddie on his credit is for an ambulance bill that should have been covered by insurance, then he should have a very good shot at getting that removed from his records one way or another (a PFD, a dispute, whatever). He gets rid of it, he's got no problem and can buy his own vehicle.

However, as ICS already suggested, it seems he ought to be able to finance his own car even with something like that on his records, IF in fact that's the only baddie he's got.

I know you can't easily ask to look at Dad's entire credit history, but it does seem as if he might be hiding other problems.

[Anonymous]

Don't do it. Your father should act like a rsponsible parent and assume responsibility for his own finances. Don't jeopardize your future. Maybe he should find a way to pay cash for a car. There are other options....

[Anonymous]

This is what is called a straw purchase in the auto finance world, and it is a huge NO-NO.  You will be breaching the terms of your agreement as soon as you sign on the dotted line.  This should not be encouraged in what is supposed to be a reputable credit forum.

Now, co-signing is a totally different story.  Any reason you can't pursue that option?  Is his credit THAT bad?

[creditguy]

I seriously doubt an ambulance CO would keep your dad from obtaining financing. Is it that he just wants more favorable terms by using your credit? I know family is important but so is your credit. I personally would have to turn dad down. There are enough stories on here of people messing up their credit at the expense of helping a relative. I certainly am not passing any judgement on your dad, but do you plan on making any payments your dad may miss due to unforeseen circumstances? 

No one will care about or treat your credit like you will, therefore it should only be left in your hands. I know it can be tough to turn down relatives, especially parents, but they will get over it and the hurt feelings will pass. You know who doesn't forget? EX, EQ and TU, they have long memories and could care less if you were helping a relative who could not pay. I know it's a tricky situation and honestly relatives should not place their loved ones in these predicaments, but it is what it is, I wish you the best of luck with whatever you decide to do. 

[Anonymous]

My dad qualified for 0% interest at a car dealership and has 100% payments on everything. The only thing that came out of nowhere was his $1800 ambulance chargeoff because he was taken to a different county for treatment, which should have been covered by insurance, but didn't, so it charged off. I'm not sure what his score is currently, but just checked his report yesterdays and everything is 100% good except that one chargeoff. He just wants to be able to get 0% interest on the new vehicle again. Still have to deny his method of purchasing under my name?

[Anonymous]

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@Gunnar419 wrote:

I know it's tough to say no to your father, but really you should.

If the only baddie on his credit is for an ambulance bill that should have been covered by insurance, then he should have a very good shot at getting that removed from his records one way or another (a PFD, a dispute, whatever). He gets rid of it, he's got no problem and can buy his own vehicle.

However, as ICS already suggested, it seems he ought to be able to finance his own car even with something like that on his records, IF in fact that's the only baddie he's got.

I know you can't easily ask to look at Dad's entire credit history, but it does seem as if he might be hiding other problems.

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The chargeoff/collection hasn't been updated as of Jan 2015. Should I help him call up the credit bureaus and dispute it? I heard that if it's already in this stage to just leave everything as is and let it fall off in a few years?

[creditguy]

He could always pay off the $1800 if thats whats holding him up.