The question here is not if it can hurt your credit (it might) but the question is if it can help it. YES! It can and will help your credit. It will help both the main buyer and the cosigners credit. With each good payment it will be reported on both persons credit report as a good payment, and will even help the persons with bad credit. Now either of the persons fails to make payment then it will affect both, so now see the other persons answer below: No! Being a co-signer is much more likely to damage your credit than help it. A co-signer is needed because the lender determines that the person asking for a loan is not likely to be able to pay it. Why would you want to put your money on the line if the BANK isn't willing to? It's hard to say no to friends or family who want you to cosign, but it's highly unlikely to turn out well. If they can't pay their bills (which is what the bank thinks is likely to happen) the bank will come after YOU. You promised to pay if your friend or relative didn't, and they can sue you, garnish your wages, and seize your assets if you don't do it. How much would you be willing to give up if your friend didn't pay their bills?
A better way to build credit is to get a secured credit card through Orchard Bank or a similar company (or your bank or credit union) and use it wisely. Charge something every month, but pay it off every month IN FULL. At the end of the year, you'll get the deposit back and be able to get a regular, unsecured credit card. You'll have built up a respectable amount of credit and good spending habits and will soon be eligible for auto and home loans and higher credit limits.
For more information, check out a radio show that I listen to all the time: www.daveramsey.com. He advocates no credit card use at all, but that's a little extreme. Still, you can find out more about why cosigning is a bad idea on that site.
A cosigner must have good credit, a reliable income and the willingness to sign for another individual. Cosigners help primary borrowers build a good credit history, along with on-time payments.
Yes. It will also improve the co-signer's credit too.
Yes, having a cosigner on a loan or line of credit/ credit card can help your credit. It can help because, assuming they have good credit, you are more likely to get approved, which gives you a chance to build your credit. The danger is if the cosigner where to default on payments or abuse the account (such as using a credit card you both are signers on to rack up a lot of debt). So if you pick your cosigner carefully it can help you- but remember what you do on the account effects their credit, so make sure you are also responsible with the account.
I would try to get the loan on my own and build MY credit up. Its a personal choice.
Co-signers and CreditA co-signer really doesn't help you build credit, because the loans are actually based on the credit of the co-signer and not you. Type this in Google..........How can I rebuild my credit? for information
Yes, as long as the cosigner's credit is in good standing. This is a good way to build credit for yourself. Try a KIA dealership KIA has been known to assist people to build credit. You will need a good job (a plus if you have been with the same company for 2yrs or more) Another plus is to be able to provide a decent down payment. ($2,000.00 or more. ) Having a car to use as a trade in will help. Good Luck
The LENDER will have to remove any co-signor from the loan. Your only option is to have your daughter refinance the loan in her name only. She might be able to do this, given enough positive credit history on the existing loan and proof that it was her making the payments on time.
No you can build credit by taking out a loan and paying it back ON TIME. Or have someone cosign a loan for you in order to get approved for a card or loan but make sure the cosigner fully understands the agreement because they'll take on most of the risk.
You are at the mercy of potential landlords and your own bad credit history. There is no magic trick available. You may need to wait and save up a substantial security deposit and try to build up a better credit history.
Many students have not yet had the opportunity to build a positive credit history. Fortunately, there are lenders that offer credit cards no credit history required. Student credit cards are specially designed for young students with limited credit. Providers that offer these cards will accept applicants that may be considered a high risk by other lenders. However, applicants with a limited income must provide a cosigner unless the are over 21 years of age. Even with a cosigner, students may be looking at fairly high interest rates. The upside is that these cards give students the perfect opportunity to begin working towards a good credit score.
You need good credit and/or a good income. Start by applying for Store Cards at Sears, certain clothing stores, or even a gas card and using it every month and paying your bills on time. This will build your credit rating and increase your chances of getting a loan.