@Rodzilla79 wrote:
Here’s the deal. My partner and I have been together almost 4 years now. Best relationship ever for the both of us. No plans to marry at this time but something we have talked about doing. So about a month ago we both try to get loans to consolidate separate credit card debt. Mine was approved for 5,000 and she was denied for 20,000. She would like me to co-sign for her so she can get this loan. Here are my questions:
- I had some bad credit due to student loan default but I have been working on the 18 months. My credit was around 675 when the most recent loan was approved. I am concerned that co-signing would drag my credit down. Is that a legitimate concern?
- When we got the house, I wasn’t on the title because of a recent job change. I am not on the title yet but I was wondering if adding me to the home would be in our best interests financially? Would it help either one of us in terms of our credit?
I have no doubt in my mind that she will re-pay the loan but at the same time, I don’t necessarily want to be on the hook if she get really sick and can no longer work. She understands my POV on situation, but I was hoping some info on the forum could be enlightening. Thanks for taking the time to read this!
I don't think you should co-sign and here's a few reasons why but you'll know what to do when you yourself answer these questions.
Who's to say 2 years from now you both won't have grown into other things thus wanting to go separate ways?
No long term commitment per your post only talk of such....whats the hold up or is there something that prevents this?
Why is it if the relationship is so good and perfect your not on the house title but you can co-sign for a loan in both names shouldn't it go both ways?
$20,000 CC debt is a long term fix and frankly shows signs of bad credit decisions in the past that you could be stuck with weather together or not
If you both are sincere in building a lasting relationship then it should not start in a financial mess which is the number one killer of relationships that start off perfect
My advice both of you get together and make a plan to fix her credit and use it as a building and bonding time.
Not to be the downer but I see red flags here IMHO
Edit
Forgot to add putting you on the house tittle would help your credit but not her's that is if no lates have occured if so it would hurt you
Her's can only be helped by paying down the debt
Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
