Who gets credit for paying car payments.

[Anonymous]

I have some questions  I hope someone can help answer. Since being on disability for 2-3 yrs. I needed to purchase a car.

Not having any reliable credit history to go on except the work I did before disability, my mom was my co-signer.

Her credit history is A+. We both went to see about getting me a car. I was told I could not have the car in my name

or be on the policy since my credit was not up to par. I explained to the dealership that i wanted to put down

$2000.00 towards the purchase price.  That was no problem. So since getting the car, I am  making all the payments

and have been for the past year, and my name is no where on the contract. My mom signed  everything. So, my question is, who gets the credit for

this car? Me or my mom. We were also told by the finance co. that me and my mom would have to complete a credit

app. in order for them to add my name to the contract.  But was told that no one is getting any credit for this car. Please help.

How can someone on disability get credit for anything if they cannot work? What happens to all of the payments I've made for the

year? Thank you.

[Anonymous]

It all depend who's name is on the loan. Since you did not sign anything and your mom was the only one that did, I thing it will be safe to say it is reporting on her credit. 

[GregB]

Based upon the info provided it is your mother's car, or at least it is your mother's LOAN. If you bought it and she was a co-signer, it would appear on your credit report. However, you stated that your name is not on the contract.

Most credit applications require income so no job would likely stop the approval for any credit even with good history.

[Anonymous]

Thanks for your reply. But I'm still curious., if i'm the one making the payments with my checks every month,  the one who put down

the deposit, wouldn't it only be  fair to give me credit for something?  I know I'm reaching abit far here, but I had to give it a try.

Thanks for your help.

[Anonymous]

Thanks for your reply. Question? How can anyone get credit for something that they are not paying for? All of the checks sent

it are in my name and have been for over a year now. Thanks again.

[Anonymous]

Hi clouds,

Welcome!  Glad you're here and posting.

You'll get credit for payments on accounts that are in your name.

If you're hoping to build credit, you have some options besides installment loans. 

Now, I'm unclear if you have an income - or possibly a household income?  Knowing that will help folks know what to recommend to you.

[Anonymous]

Hi, thanks for replying. I myself am disabled. Have been since 2007. I donot have any working income due

to my disability. Only "income" I do have is what I get from my husband and children who work. So that's why I

asked if there was a way for me to establish credit for myself if I'm not working at all. Thanks again!

[GregB]

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@Anonymous wrote:

Thanks for your reply. Question? How can anyone get credit for something that they are not paying for? All of the checks sent

it are in my name and have been for over a year now. Thanks again.

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If the loan is in your mother's name then she is the one responsible for payments. As far as the bank is concerned, you aren't involved. If you didn't make the payment, she would have to - or they would come after her and her credit would be damaged. Your credit wouldn't get damaged if you didn't pay. It also doesn't improve if you pay the payment every month.

If you had the loan in your name and she cosigned, it would be different. Your credit would be improved by making the payments on time. If you were late or didn't pay then your credit would be damaged. If you continued to be delinquent on the payments, they would then go after the co-signer and her credit would also be damaged.

You can probably build some credit on small accounts that don't require income but report to the Credit Reporting Agencies. As you build a credit history, you would qualify for larger items in your name or with a co-signer. Larger items, particularly Installment Loans such as a car, usually require that you have the income to support the payments no matter how good a "score" you have. If you have the income but poor credit history, you can qualify with a co-signer. Mortgage loans currently require that you have the income with no exceptions.

[Anonymous]

Hi clouds,

If you are living with your husband and/or children, you can build credit by applying for a credit card that uses household income during the application.

Juniper, Amex, GEMB store cards (i.e. Walmart, Macy's, Dillards - a ton of others) use household income.

You could also apply for a secured card.  Lots of folks here use them - I never have, so I'm unsure of where they stand on the income issue.

Hope that's somewhat helpful!  I'm sure other folks will chime in with helpful ideas.

Revolving accounts are very helpful in building credit, so this may be a good avenue to pursue.