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Does cosigning a loan affect your credit the same as being the primary person on a loan?
Wiki User
∙ 14y ago
Yes if you co-sign for a vehicle you are just as liable as the primary person so if they dont pay you have to pay or both your credits are hurt
Wiki User
∙ 14y ago
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Is a person with higher credit considered the primary borrower even if they are cosigning?
Usually no--the lender goes by the lowest credit rather then the higher. So----if you are applying and your credit is better and you can apply alone--DO IT! Then work on the other person's credit to improve it for the next time.
If you are not the primary person on the mortgage is you credit rating affected?
As long as you are on the mortgage it will show on your credit report and effect you credit no matter if you are the primary, secondary or co-signer
What are the pros and cons for cosigning a home loan?
There are no pros, except for making the person you are cosigning for happy. CONS--SEVERAL, whoever you cosign for does not have to make payment and still get to keep the house, you pay they stay for free. your credit is scarred if they do not pay and it goes into forclosure, you have to make up all payments or come up with the total loan, You really need to think long and hard before co signing! There are so many programs to help people with bad credit, no credit. They can help them, do not co sign. Talk with an attorney before cosigning, no matter who it is for.
What are the pros and cons of cosigning a loan?
The pros are really only for the person who needs a cosigner. The reason they need one is because they do not have good enough credit to get the loan on their own. By Cosigning with them you are helping them to build their credit with a loan they wouldn't be able to get on their own. It also is listed debt for bolth people so If the cosigner trys to get their own loan later they will take that additional debt into account against them. The big con is that if the person you cosign for doesnt pay you are liable for all the money and if you don't pay it it goes against you credit. Be very aware who you cosign for and that they can be trusted because they can hurt youre credit as well as theirs if they don't pay.
Can marriage affect your credit score?
yes, cause if one person decides to go bankrupt because you guys are having money problems it can affect your credit score to, not just their credit score.
Is a person with higher credit considered the primary borrower even if they are cosigning?
Usually no--the lender goes by the lowest credit rather then the higher. So----if you are applying and your credit is better and you can apply alone--DO IT! Then work on the other person's credit to improve it for the next time.
Can you take possession of a car that you co-signed for if the primary is making the payments?
NO. Cosigning means the person is promising to be responsible for the debt if the primary borrower defaults.
Does cosigning for a vehicle lease obligate you to other debts the person has?
No. It will become a part of your credit report and will have some effect on your debt to income ratio.
How does cosigning for an apartment effect me?
If you are signing for someone and they pay late it goes on your credit report as a late pay. Also if the person can not pay the rent you are liable to.
If you are not the primary person on the mortgage is you credit rating affected?
As long as you are on the mortgage it will show on your credit report and effect you credit no matter if you are the primary, secondary or co-signer
What are the pros and cons for cosigning a home loan?
There are no pros, except for making the person you are cosigning for happy. CONS--SEVERAL, whoever you cosign for does not have to make payment and still get to keep the house, you pay they stay for free. your credit is scarred if they do not pay and it goes into forclosure, you have to make up all payments or come up with the total loan, You really need to think long and hard before co signing! There are so many programs to help people with bad credit, no credit. They can help them, do not co sign. Talk with an attorney before cosigning, no matter who it is for.
If you claim chapter 7 bankruptcy can they go after your cosigner for money?
Typically, yes. When a person co-signs a loan they are EQUALLY responsible for the debt. When one party files for bankruptcy they are not going to be responsible for payment unless it falls within a category of non dischargeable debts (in which case they would) but you should let them know of the almost certain liability. Beyond the requirement to pay for the debt, the cosigner may also have to pay late fees or collection costs associated with a default on the loan. The creditor can use the same collection methods against the cosigner as against the primary borrower. If the primary borrower doesn't pay and goes into default, it will ruin the cosigners credit. Cosigning on another person's debt may affect your own ability to receive loans. The debt is also considered yours and raises your own outstanding balance. Cosigning a loan for a son or daughter might affect your estate or gift tax exemptions.
Can the cosigner get her name off the loan or can she take the car if her name is not on the registration?
The only way to be relieved from cosigning obligations is for the primary borrower to refinance the vehicle. And no, if the person's name is not on the car title they have no ownership rights.
Can someone on social security benefit's cosign for a loan?
Yes, someone on the social security can be able to cosign for a loan. The person cosigning the loan however has to have good credit regardless of his availability on the social security benefit.
What are the pros and cons of cosigning a loan?
The pros are really only for the person who needs a cosigner. The reason they need one is because they do not have good enough credit to get the loan on their own. By Cosigning with them you are helping them to build their credit with a loan they wouldn't be able to get on their own. It also is listed debt for bolth people so If the cosigner trys to get their own loan later they will take that additional debt into account against them. The big con is that if the person you cosign for doesnt pay you are liable for all the money and if you don't pay it it goes against you credit. Be very aware who you cosign for and that they can be trusted because they can hurt youre credit as well as theirs if they don't pay.
Can marriage affect your credit score?
yes, cause if one person decides to go bankrupt because you guys are having money problems it can affect your credit score to, not just their credit score.
If you authorize someone else to use your credit card and that person does not have good credit does that affect your credit score?
No they don't care, so long as the expenses on your credit card are paid.
