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The primary reason is that a person who needs a co-signer is a poor credit risk. They do not have a history of paying back debts. Also, every potential co-signer should be reminded they they are responsible for paying the loan if the primary borrower defaults. A co-signer should monitor the borrower to make certain the loan payments are being paid on time.
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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.
Can a grandparent cosign?
Absolutely anyone that can qualify for credit can cosign a loan for anyone. But be careful, as the person cosigning takes full responsibility for seeing the loan is payed and will be the one sued for failure to pay (not the person they cosigned for) should the lender decide it is necessary to sue (e.g. the car was destroyed while uninsured and thus cannot be repossessed and no insurance settlement will be made).
Does cosigning a loan go on your credit report if the loan is in good standing?
Your cosigner's credit report should also reflect the loan. In this case, it should show as paid on time as agreed.
How does cosigning for a car loan affect your credit?
No.
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.
Does your credit score drop after cosigning on a loan due to the amount of the loan?
Yes.
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.
Will cosigning a loan effect your ability to get a loan?
Yes, it will affect your debt to income ratio.
Does cosigning a loan affect your credit the same as being the primary person on a loan?
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
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.
How do you repair the damage on your credit report from cosigning a bad loan?
TIME!
