0
By how much does co-signing a loan effect your purchasing power?
Wiki User
∙ 18y ago
It depends on the loan and your current credit. Remember that by co-signing a loan, you're taking liability for the contract. The bank looks at each one of these as a credit risk, and therefore will limit your purchasing power based on the amount of collateral you have in contrast to the amount of the loan, and your risk potential (or credit score). For instance, if you co-sign on a sibling's $30K loan, but only have a yearly income of $40K and have no house, you're likely to NOT be able to qualify for a decent mortgage rate. To them, it's YOUR liability!
Wiki User
∙ 18y ago
Add your answer:
Earn +20 pts
Does cosigning on a loan affect the cosigner's purchasing power?
Yes since it will show up on your credit record as your debt. You are fully responsible for any loan that you co-sign.
Will cosigning a loan effect your ability to get a loan?
Yes, it will affect your debt to income ratio.
How does cosigning for a car loan affect your credit?
No.
How does cosigning for an auto loan affect your ability to get your own auto loan?
Never cosign a loan. While I agree that one should NOT cosign. cosigning can hurt or help. Remember that if they do not pay you have to. Cosigning will affect your credit and count towards your debt to income ratio and show as an open joint auto loan. You might be turned down to get your own auto loan without a cosigner if you cosign.
How do you repair the damage on your credit report from cosigning a bad loan?
TIME!
Does cosigning on a loan affect the cosigner's purchasing power?
Yes since it will show up on your credit record as your debt. You are fully responsible for any loan that you co-sign.
Will cosigning a loan effect your ability to get a loan?
Yes, it will affect your debt to income ratio.
How does cosigning for a car loan affect your credit?
No.
Does your credit score drop after cosigning on a loan due to the amount of the loan?
Yes.
How does cosigning for an auto loan affect your ability to get your own auto loan?
Never cosign a loan. While I agree that one should NOT cosign. cosigning can hurt or help. Remember that if they do not pay you have to. Cosigning will affect your credit and count towards your debt to income ratio and show as an open joint auto loan. You might be turned down to get your own auto loan without a cosigner if you cosign.
How do you repair the damage on your credit report from cosigning a bad loan?
TIME!
Does your bad credit rating affect your children if they want a loan?
only if your cosigning
Does divorce disqualify one from eligibility to cosign a loan?
It depends on what kind of loan. Generally, the answer is no, it does not, but the divorce may have an adverse effect on the separate credit scores, and it would be the lowering of the credit score that might make one ineligible for cosigning.
What do you need to co sign for a car in Florida?
There is not a strict set of requirements for cosigning. You will need to be over 18 and the lender will need to believe you are a good credit risk. This is based on your credit score. You should be concerned with the obligations cosigning a car loan will create for you. See the Related Link for "Experian: Advice on Cosigning a Loan" for info on this.
What do you need to co-sign for a car in Florida?
There is not a strict set of requirements for cosigning. You will need to be over 18 and the lender will need to believe you are a good credit risk. This is based on your credit score. You should be concerned with the obligations cosigning a car loan will create for you. See the Related Link for "Experian: Advice on Cosigning a Loan" for info on this.
Can a new business owner cosign for a loan in his business name and what effect will it have if the borrower defaults on the loan?
Cosigning for a loan is dangerous to do. A true business loan should be under a business name itself, a personal guantee may be required in some situations. To build business credit search for a mentoring service online.
How can someone be released from cosigning a mortgage loan without ruining their credit?
The only way to be removed from the obligation of cosigner is for the loan to be refinanced.
