Co-Signing on a car

[TheSiege]

So if I co-Sign for my SO, who gets the credit?
Do i get it until she re-finances or what?
help me

 

[FoBoT]

why don't you just do it joint?

 

[James Bond]

I am co-signed with my dad (he is main, im secondary), and I get equal credit.

 

[TheSiege]

joint? is that an option? we are not married

 

[Bryophyte]

Never, never, never cosign on a bank loan for a car unless your name is also on the title. Even then, be very careful. I know someone who is having to deal with a past boyfriend who stopped paying his loan and now, years later, she and her husband have to pay thousands of dollars to clear it up.

 

[kami333]

Originally posted by: TheSiege
joint? is that an option? we are not married

You are going to have people jumping all over you not to do it if you aren't married.

<shrug> co-signed my gf's $10k education loan, I figured she has more at stake to make sure she can repay the loan than I do.

 

[Triforceofcourage]

Originally posted by: kami333

Originally posted by: TheSiege
joint? is that an option? we are not married

You are going to have people jumping all over you not to do it if you aren't married.

<shrug> co-signed my gf's $10k education loan, I figured she has more at stake to make sure she can repay the loan than I do.

Everyone here is going to tell you not to do it because they are right. Thats a horrible idea, you would be stupid to even consider it.

Then again I was stupid enough to lend my last ex $300 and guess what, she never paid me back. Lesson learned. Don't let your lesson be a more expensive one.

 

[Whoozyerdaddy]

Never co-sign ANY loan, married or not. That puts you on the hook for the debt without control of the actual item being financed.

Make sure the loan and the title are held jointly.

And good rule of thumb... never get involved with joint financing unless you are married.

 

[altonb1]

Originally posted by: Whoozyerdaddy
Never co-sign ANY loan, married or not. That puts you on the hook for the debt without control of the actual item being financed.

Make sure the loan and the title are held jointly.

And good rule of thumb... never get involved with joint financing unless you are married.

Agreed.

OP: Haven't you ever seen People's Court, Judge Judy, Judge Joe Brown, etc? <shakes head>

 

[Eos]

According to my experience, I would have been given the credit when I would have had a cosigner. I came to this conclusion because they told me I alone would have to qualify for the loan first. Only then would I be allowed to have a cosigner...

WHY DO I NEED A COSIGNER IF I ALREADY QUALIFY?!?!?!?!?!?

bah

 

[FilmCamera]

Do not ever cosign on a vehicle unless you can afford to make the payments on it. Because if they default, they will go after you even to the point of garnishing wages, depending on the loan company.

 

[TheSiege]

hmm ok, well besides advice on not to load, does anyone know the semantics on the credit?

 

[TheSiege]

BTW i have more 3x times the amount of the loan in the bank, she just needs credit and has none, and she is buying the car from me in the first place

 

[FilmCamera]

She's buying it from you? That's kinda strange.

She will get credit on the loan. You will as well as a cosigner.

 

[ChiPCGuy]

I work for Ford Credit. If you co-sign for someone, you co-guarantee the note. That means that you and the Buyer are both equally responsible for the payment, and the credit history on the account is reported equally on both your credit report and the Buyer's.

Give this some real thought. If the Buyer decides he/she cannot pay or if he/she should receive negative credit reporting on the account because a payment goes 30 days past due, then you are on the hook as if YOU bought the car. The lien holder (whoever that will be) will have the right to go after both parties for payments in arrears.

Co-signing also affects your ability to borrow. Since a creditor will know that you *could* become responsible for the payment on the car in the future, this fact will be taken into account when you apply for credit.

I have seen train wrecks as a result. An example is a girlfriend wants a car but does not have the credit to obtain it. You do. You co-sign. You then have a verbal agreement that she will pay the payments. You break-up. She decides that she cannot or will not pay any longer. The account goes past due 30 days, then 60, then 90. Then a repo occurs. This is reflected on both of your credit reports. I see this every day.

 

[Whoozyerdaddy]

Originally posted by: TheSiege
BTW i have more 3x times the amount of the loan in the bank, she just needs credit and has none, and she is buying the car from me in the first place

It doesn't matter that you have the money in the bank. Your credit is still at risk. What if she just stops paying on the loan? Or regularly makes her payments late? All those 30 day late payments apply to your credit as well. Anyone reviewing your credit for a home loan or any other form of credit will count this against you regardless of whether or not it was your fault.

None of the advice you get here will matter to you though. Your GF will give you that "look" if you even think of telling her no and you'll end up signing for it anyway. Good luck.

 

[MixMasterTang]

Even if someone has little to no Credit they should be able to get a loan if they have a 50% down payment. You are better off having her get the loan under her own name. If you co-signed it would report on your credit report, but that would also effect your Debt to Income ratio in a negative way, even though you aren't technically paying for it if you ever apply for a mortgage they total up the monthly payments of everything listed on your credit report to calculate your Debt to Income Ratio.