0
Does being a cosigner help build your credit as well as the other persons?
Wiki User
∙ 13y ago
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.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What does a cosigner have to to have?
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.
Does having a cosigner help your credit?
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.
Does paying your car loan on time even with a cosigner help build your credit?
Yes. It will also improve the co-signer's credit too.
If you have fair credit should you apply for a loan on your own or with a cosigner who has bad credit but more income and assets to get a lower rate?
I would try to get the loan on my own and build MY credit up. Its a personal choice.
Can a person with no credit history get a car loan with a cosigner?
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
What does a cosigner have to to have?
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.
Does having a cosigner help your credit?
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.
Does paying your car loan on time even with a cosigner help build your credit?
Yes. It will also improve the co-signer's credit too.
If you have fair credit should you apply for a loan on your own or with a cosigner who has bad credit but more income and assets to get a lower rate?
I would try to get the loan on my own and build MY credit up. Its a personal choice.
How long could a cosigner help you rebuild credit?
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
Can a person with no credit history get a car loan with a cosigner?
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
How can a primary buyer get the cosigner off the loan you wanted to cosign for your daughter but she didn't have enough credit so to build her credit you put her on as a cosigner how can you get her o?
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.
Do you need a credit card to have credit?
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.
How do you rent an apartment with bad credit and no cosigner?
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.
How do you get a loan without a cosigner?
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.
Do you have to have a credit card to have good credit?
No not necessarily. Your credit score is determined by your history of paying back accounts from lenders. While you don't need a credit card they tend to be how most people build credit. To get a good score without a card (assuming you're applying for a loan or some kind of financing) you'll need either a cosigner, someone who has credit and is willing to put it on the line for you and their credit becomes yours basically but they take most of the risk and penalties if you default. Another option is a loan which you pay back every month ON TIME in order to build a good score over time.
Is it better to avoid having a cosigner if you're trying to build your credit?
Sometimes you can't establish good credit unless you have a co-signer. Such as when you first purchase a car or whatever. It is better to be able to do it on your own. Although in the long run, it is how well you live up to your personal financial obligations that really counts.
