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What would you do if a friend or relative asked you to cosign a loan? Before you answer, make sure you understand what cosigning involves. Under federal law, creditors are required to give you a notice that explains your obligations. The cosigner

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โˆ™ 2006-03-13 20:28:23
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Q: How does cosigning work?
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Related questions

How does cosigning for a car loan affect your credit?

No.


What if your cosigning is a case of identity theft?

The identity theft has to be resolved before the co-signing can be resolved. File charges,ect get that out of the way, then work on the co-signing mess.


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.


Why does cosigning lower your credit score?

Because you have taken on the risk of a deadbeat.


Is there another word or term for cosigning?

co- maker,buyer,borrower guarantor???


Does your credit score drop after cosigning on a loan due to the amount of the loan?

Yes.


Does your bad credit rating affect your children if they want a loan?

only if your cosigning


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.


Will cosigning a loan effect your ability to get a loan?

Yes, it will affect your debt to income ratio.


Is a non custodial parent responsible for cosigning when the custodial parent can't get an apartment on her own?

no


What are the risks of cosigning a lease?

The risk of cosigning on a lease is that the cosigner is responsible for the rent for the leased property even if the other signers do not pay the rent. The landlord can go after one or all of the cosigners on a lease to get rent paid if the lease is not paid for the full term.


Is cosigning on a mortgage going to affect my refinance?

Yes, because it affects your debt to asset ratio.


Does cosigning mortgage papers and not loan papers constitute ownership?

The title to the property is what defines ownership. The person cosigning a loan has no rights to the property unless their name is also on the General Warranty Deed/title.


What does it mean to cosign on a savings account?

It's like cosigning a loan. It puts you at partial responsibility for the account.


Can you improve your credit score by cosigning for someone who has perfect credit?

Yes you can, if approved it will show positive on both reports.


If cosigning for your mother can impact you negatively when buying your own home how can you help her?

Pay off all her debts yourself if you can.


If you co-sign on an auto loan are you required to be on the title in Pennsylvania?

No, a cosigner generally has no legal rights to the property that they are cosigning for.


Is there a way that you can get off from cosigning a car and have someone else COSIGN?

No. The only way to change co-signers is to refinance the vehicle.


Would cosigning for your son's apartment rental agreement be viewed the same as cosigning for an actual loan when applying for future credit assuming all payments are made on time?

Co-signing means that you accept 100% financial liability for the contract in question. The manner in which the contract is adhered too has equal impact on your credit.


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.


How does cosigning on a mortgage work?

You assume responsibility for a loan for a house. It is not a recommended thing to do, because non payment can affect your credit rating. Also, the amount of the loan affects your debt to income ratio, so you may have a problem borrowing on your own behalf.


How much will cosigning a student loan lower your credit score?

Hi-Cosigning a loan will not lower your credit score unless payments are late, or if the borrower defaults and you cannot make the payments yourself. A cosigner is equally liable for the loan, so if you cannot make the payments, you should not sign.The way that cosigning will affect your credit report is in your debt-to-income ratio. The loan you cosign will show up as part of your debt, so a lender may not want to loan you more money if it looks like your debts are too high.Something that people often overlook though, is that cosigning a loan can actually improve your credit rating if the borrower makes his payments on time. You will get credit for making payments and paying off this debt as if it were your own.


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.


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.


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.