Loans

Yes, someone 18 or over can cosign on a loan. But you are legally liable for the entire amount if the borrower fails to repay---and it can ruin your own credit!! Think long and hard before doing this for anyone. I can't imagine doing this for anyone but a close relative...and even then there is no guarantee you won't end up paying the entire amount.

Past the need for being of legal age to contract, BY FEDERAL LAW AGE CANNOT BE A CONSIDERATION for granting credit. (That is one reason why people can get a mortgage at an advanced age, even though they will likely not live to see the loan through).

The credit scores are not combined or added to get to the needed level for a loan, in fact, just the need for a cosigner may raise the level required by the lender to approve a loan.

But the real consideration is:

You are certainly responsible for the actions of primary to the extent of the loan....and after that, it would be situational on what other liability could extend to you - but certainly situations no one would want to be in!

A cosigner is only needed because the primary doesn't have adequate credit rating/history for the needed loan.

Hence, the cosigner needs to have credit good enough to qualify for the loan, and secure enough that they can risk much of what they have historically established for likely no real benefit - on someone others won't risk anything for even with a possible very good business gain.

Understand, being a cosigner is essentially the exact same as getting a loan - the cosigner is just as liable as if he got the loan on his own..in fact he needs to be more responsible. He now has to take on the obligations of the primary too, if needed, likely without the control, posession or benefit of what was purchased.

Which is to say, if someone buys something for themselves, on their own credit, and then loses their job (or whatever) and has problems paying, they can sell the item and pay off (all/much of) the obligation. For many reasons, a cosigner may not be able to.

And let me be clear, it is frequently shown that people who are irresponsible about their own credit (regardless of why it got that way) are even more irresponsible about others credit and obligations -- and this extends to obligations like those that come with owning/maintaining things. Things that may have your name connected to them.

Sure you can cosign a loan if your ready to ruin your life at an early age. Remember relationships with people whether family or not tend to change.

There are certain criteria that you must meet. You must be 18 or older, you must have an acceptable credit background (no late payments, no high borrowing) and you must meet the acceptable amount of income which can vary depending on the bank and the type of loan. You won't find many young adults that have these, so it's generally not a good idea. Furthermore, someone older may have a better established credit history, which would lower the APR on the loan, lowering the payments as well.

Under federal law, creditors are required to give you a notice that explains your obligations. The cosigner's notice states: You are being asked to guarantee this debt. Think carefully before you do. If the borrower does not pay the debt, you will have to. Be sure you can afford to pay if you have to, and that you want to accept this responsibility. You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount. The creditor can collect this debt from you without first trying to collect from the borrower.* The creditor can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may become a part of your credit record. This notice is not the contract that makes you liable for the debt. * Depending on your state, this may not apply. If state law forbids a creditor from collecting from a cosigner without first trying to collect from the primary debtor, this sentence may be crossed out or omitted altogether. Studies of certain types of lenders show that for cosigned loans that go into default, as many as three out of four cosigners are asked to repay the loan. When you're asked for cosigning, you're being asked to take a risk that a professional lender won't take. If the borrower met the criteria, the lender wouldn't require a cosigner. In most states, if you cosign and your friend or relative misses a payment, the lender can immediately collect from you without first pursuing the borrower. In addition, the amount you owe may be increased

No. If the primary borrower's credit rating has improved and you go back to the original lender, you MAY be able to refinance without many of the usual closing costs.

That is exactly why the lender insisted on a cosigner. They didn't believe the borrower could/would make the payments. Cosigning means "I will pay if he/she doesn't." You are certainly responsible for the actions of primary to the extent of the loan....but consider after that it will be situational on what other liability could extend to you - certainly those are situations no one would want to be in! A cosigner is only needed because the primary doesn't have adequate credit rating/history for the needed loan. Hence, the cosigner needs to have credit good enough to qualify for the loan, and secure enough that they can risk much of what they have historically established for likely no real benefit - on someone others won't risk anything for, even with a possible very good business gain. Understand, being a cosigner is essentially the exact same as getting a loan - the cosigner is just as liable as if he got the loan on his own..in fact he needs to be more responsible. He now has to take on the obligations of the primary too, if needed, likely without the control, posession or benefit of what was purchased. Which is to say, if someone buys something for themselves, on their own credit, and then loses their job (or whatever) and has problems paying, they can sell the item and pay off (all/much of) the obligation. For many reasons, a cosigner may not be able to. And let me be clear, it is frequently shown that people who are irresponsible about their own credit (regardless of why it got that way) are even more irresponsible about others credit and obligations -- and this extends to obligations like those that come with owning/maintaining things. Things that may have your name connected to them.

The cosigner was probably "notified" that any funds held by the lender would be attached at the time the loan was signed. In order to garnish wages or place a lien on other property, the lender would have to go to court and obtain a judgment, in which case the cosigner would have received a summons from the court.

The loan must be paid off or refinanced in the name of the primary borrower alone.

A cosigner is equally obligated for the debt until the loan is paid or refinanced in the name of the primary borrower. The co-signer can't easily be removed from the debt. The reason you have a cosigner in the first place is because the primary borrower may not have had a sufficient credit rating or prior loan payment history. If the loan balance can't be paid off, the only option is for the loan to be refinanced without the co-signer.

The primary borrower must be willing and qualified to refinance. You must discuss it with the lender. If the primary borrower's credit rating has improved since they took out the loan, the lender may give them a new loan to pay off the old one. Absent the primary borrower being able to get a loan on his/her own a co-signer can be removed only if the lender is willing to let you off the hook. That's not common, and why should they?

Typically a parent will co-sign for a child with no credit history, a business owner will co-sign as an individual for his business, or, a partner or parent who is not on the deed will co-sign a mortgage. If you co-sign a loan for another party and they default on the loan, you are responsible for paying the loan. You guaranteed it.

You can sue for anything if you can find a lawyer to take the case, but collecting would be something else. You cosigned, promising the bank that you would make any payments that the borrower did not. THERE IS NO AGREEMENT THAT SAYS THE BORROWER WILL REPAY THE COSIGNER. IOW, you are SOOL.

After months of unsuccessfully trying to get the person I cosigned the loan for to pay his bill - I sued him. He got scared because he knew I would get the judgment because he agreed to pay this bill and that's why I cosigned in the first place. He knew a judgment on his credit report would cause him lots of problems. So after he received the court summons and we appeared before an arbitrator he agreed to pay an extra $125 per month to settle the loan faster in exchange for me not requesting a judgment. I also received a signed document by him and the court that if he missed even one payment again - it would go into an automatic judgment on his record for the balance due on the loan plus $500. I'm glad I didn't wait for the loan to go into default and ruin my credit before I took action.

Since the person you co-signed for has agreed that you take possession of the car, then all you need for them to be removed from the title is to change the way the vehicle is titled. This is done through your Motor Vehicle Administration office.

If there are 2 names on the title and you want to make it only one (regardless of which one wants it), both parties must agree and both must sign the new papers at the title office. So if you cosigned on a car loan and you are looking to have the primary person's nam removed from the title because you are now making the payments, you are out of luck if the person refuses. That's the risk you take in cosignin. It is not somethin to be taken lightly as it is often irreversible.

The "way out" is to pay the money. That's what you promised the bank you would do. Bankers are very good at determining who is likely to default on a loan. That's why your friend needed a cosigner.

Don't ever ever cosign a loan, even if it is your parents if you know they are not good with money. Not even for close friends. My husband has made the mistake of cosigning a close friend's loan 5 years ago. Now they are not close any more. This friend has been missing payments and paying less than the minimum payment. The loan amount has gone up a lot since it is a private loan with higher interest rate. The consigner loan has negative effects on my husband's credibility. We have tried all means but couldn't get his friend pay it off ASAP. Some people are just so bad with money. I am guess in 5 years, it will finally catch up with us. Then we will have to pay a huge lump sum of 35K for an loan of 15K originally. So don't trust anybody except yourself.

Check the type of loan you cosigned. It is very difficult to get out of some private student loans. Not even if you declared bankrupcy. Or more unfortunately, if your cosignee went bankrupt, you would end up paying for it. The possible way out will be have the person take out another loan to pay off the one you cosigned. But only if the person's credit score has improved so much that now he is qualified for a loan.

Co-signing a loan may not specifically require collateral, but if the person for whom you co-sign defaults , anything you own becomes fair game. Don't co-sign for anything for which you cannot comfortably cover the loss in case of default.

Can they? Yes. You can take someone to court for anything. Collecting is something else. Unless you had an agreement in writing stating that you would be reimbursed, I doubt you would win.

Find out what car dealers don't want you to know at dealertricks

Yes. I co-signed for an auto loan and the other borrower filed bankruptcy without notifying me. I was in the process of buying a home and before I went to settlement they pulled my credit again and her bankruptcy came up - preventing me from getting the house. So yes it will affect your credit because it will show up on your credit report that that person has filed for bankruptcy.

I wish your name could be taken off in a year. As long as that person owes money on the contract you are stuck to that contract like white on rice.

I'm in the same sinking ship as you.

Not if the cosigner has been making the payments on time. But often the cosigner doesn't know the loan is in default until it is past due 30 days or more, so if you have received two or three (depends on state laws) Right To Cure Default letters, the bank can foreclose.

No you are not responsible but if your step daughter does not pay the loan they can still repossess the vehicle.

If the title is in his name.

What if the tittle is in both of there names? We are wanting to trade off our two cars but we have a co signer who we are no longer speaking to. We are wanting to trade both cars in on one and we are wanting to lower our payments. What do you think? Could we go back to Toyota where we bought them? Trade both in and then get one lower payment if the deal works on with the dealer? We have 2 2005 cars and would to trade on 1 2004 or 2005 car. What do you think?

If you cosigned a car loan and the primary defaults, you are now legally responsible for repayment of the loan. If payments are not made on the loan the vehicle may be subject to repossession by the lending institution. As the cosigner on the loan you have guaranteed that if the primary does not make payments YOU WILL. If you do not want this situation to adversly affect your credit, make sure the payments are made. A legal Judgment is issued by the court, and is an attempt to collect a debt that is owed the plaintiff/lending institution. This could include repossession, or deducting the payments from your payroll checks.

How long will it take from the date of the notice of Judgement is sent to your house.Is it 10-day grace period and 30 days to paperwork and court date? If so, since she is filing bankruptcy shouldn't I file also since I'm told the loan is for 10,000 yet the car is only worth $300.00 in a lien sale and is not worth the repair. Is there any way to tell if the car was insured? Help!DWood

If you got the loan from an established lender or bank, it should show up within 60 days at the latest. If you financed with EZ-Jacks-Walk-In-Drive-Out, it will probably never be reported.

Go to the county treasurer's office (or whatever authority issues titles in your state) and apply for a new title. I was surprised to learn that in Kansas any person named on the title could have other names removed, but no one can be added to it without their signature.

When you co-sign that is YOUR LOAN! I am sure your banking institution made you aware of this. When one chooses to co-sign it's because the person they co-signed for cannot get a loan for one reason or the other. In over 90% of the cases the person you co-signed for does not pay off the loan. I suggest you go into your banking institution where you co-signed for that loan and make an appointment and see what they can do for you. However you handle this you will be paying out something.

No, your credit rating is separate from your spouse. If he or she cosigns it will only effect his or her credit rating.

Yes, it will improve her score, no matter who makes the payments on time, but you should be worried about what happens if SHE does not make the payments. The lender will expect YOU to make them.

Credit Unions are only allowed to do business with their members, so I would assume that a cosigner would also have to be a member. If it helps, give him the $5 to purchase one share.

Sorry, no there isn't. This is one very good reason a person should be completely informed when considering becoming a co-signer. If the primary borrower defaults and the co-signer cannot honor the debt they both will have big problems, including serious damage to credit scores/reports.