How well does co-signing for a credit card application work?

[StageLeft]

If you have bob with a credit score of 700 and john with a credit score of, say, less than 600 (because he's moved to the US recently and has no credit history; not from any negative items or anything) and they apply for a credit card for john will bob's solid history help just a little or really nail the credit card application?

BtW these guys are both from Texas, but seriously I do need an answer on the first paragraph

 

[StageLeft]

Bob & john still need help.

 

[shady123]

can't help ya.

 

[RossMAN]

Bob's credit score of 700 will definitely help IF he also has decent income and low debt.

It's about credit history (score) and DSR (debt to service ratio). So Bob could have a pimpin' 850 credit score but if he has CitiBank tatoo'd on his willy like I do then he's screwed.

So let's hope that Bob has good income and low debt.

 

[dirtboy]

It will help alot, because if John ever decides not to pay his credit card bill, it will negatively effect Bob's credit and Bob will have to pay off the debt that John incurred.

 

[StageLeft]

Originally posted by: RossMAN
Bob's credit score of 700 will definitely help IF he also has decent income and low debt.

It's about credit history (score) and DSR (debt to service ratio). So Bob could have a pimpin' 850 credit score but if he has CitiBank tatoo'd on his willy like I do then he's screwed.

So let's hope that Bob has good income and low debt.

Hmm bob's debt to income ratio is pretty ass but then john, having nothing in his name at all, has almost zero debt and a higher income than bob!

 

[RossMAN]

Maybe have Bob be the primary application and John the co-applicant.

It can't hurt to try, the only reprocussion would be an inquiry on each of their credit report's.

 

[StageLeft]

Originally posted by: dirtboy
It will help alot, because if John ever decides not to pay his credit card bill, it will negatively effect Bob's credit and Bob will have to pay off the debt that John incurred.

So if john screws things up it will be bob getting screwed. But what about john - will the lack of paying spank both of them?

 

[dirtboy]

Originally posted by: Skoorb

Originally posted by: dirtboy
It will help alot, because if John ever decides not to pay his credit card bill, it will negatively effect Bob's credit and Bob will have to pay off the debt that John incurred.

So if john screws things up it will be bob getting screwed. But what about john - will the lack of paying spank both of them?

Yes it will spank both of them, but since John doesn't have any money now he probably won't care about losing his friendship with Bob over this. Granted they both have something to lose, but of John screws up, Bob has the most to lose because he'll be paying off whatever debt John has incurred and it will reflect negatively on his credit. If John is late on a payment, so is Bob. Even if Bob didn't know or wasn't involved in paying the bills, he's still liable and will, as you say, get spanked for every little thing.

 

[Thegonagle]

AFAIK, it's up to the individual lender's criteria, because "John's" score is still low.

 

[Mallow]

basically bob's credit will help his partner out. If John skps town bob will be stuck w/ the bill.