The co-signer's credit record is wrecked as badly as the primary borrower's. The co-signer has guaranteed the loan would be paid and they are held equally responsible for paying the loan if the primary borrower fails to pay. It will be noted as a default on their credit record. "Co-signers" who agree to guarantee repayment of a loan for a poor credit risk often do so without understanding their own risk and whether they have the resources to repay that loan.
Nope.
That is why the cosigner is there. To back up the contract if you bail.
The cosigner's credit will only be affected if the person that they cosign for defaults on the loan. The bankruptcy will not affect the cosigners credit.
Generally speaking no. Cosigners are needed for a purpose, and most often it is because the primary debtors has bad credit.
The credit of the primary borrower(s) and the cosigner(s) are equally affected (positively or negatively) and both are subject to the credit history check and evaluation.
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.
It has the same effect on the credit.
As long as the loan for the unit is paid each month, the collateral will never be repo'd.
Yes. That is the point of the lender asking for a cosigner. The cosigner will have a repossession showing on their credit as well as the primary lender.
Most lenders prefer a cosigner to have a credit score of at least 620. However, cosigners with a credit score of 720 or above is always preferred.
The LENDER put the repo on there so they will be the one to take it off. NEGOTIATE.
Cosigners take 100% responsibility of that debt. It is no different than if they went and took a loan out and gave you the money. If you choose not to pay then the Cosigner is stuck paying the debt. Most credit card companies will accept a cosigner as long as they know they will get their money one way or another. Cosigning for a small amount on a credit card such as $500 - $1,000 is a good way to help your children establish their credit rating and hopefully become more independent. Marcy