Are You Really Ready To Ask Someone To Co-sign For You

vishenda · #1 (**permalink**) 10-26-2006, 01:52 PM

It looks like you may have reached a turning point in the road. Whether it's for an auto loan, a personal loan, or department store credit, you may not be able to qualify by your own merits. This is when the cosigner comes into play. The best place to look for a consigner is within the family, or either among friends. You'll want to trust them just as much as they will want to trust you.

If this individual is backing your loan, they will be privy to the same credit checks as you would be if this were your loan all by itself. Their creditworthiness is based on income, homeownership, credit history, and job security. If you default on any payments, the consigner will have to pick up the tag. That's why it's good to make sure that you have all of your ducks lined up in a row before you put the consigner's financial credit rating on the line.

Say what you mean and mean what you say!

To the cosigner, you are saying that you plan to honor the credit contract to the letter they have consigned for. Don't try to take on too much new credit at first. Take the time to really look at your spending habits. If you have had trouble in the recent past keeping up with your finances, this may not be the best time to put someone else in the cross hairs.

Special thanks for this resource: On Co-Signing

greedy4chips · #2 (**permalink**) 10-26-2006, 02:02 PM

Co-signing is a great way to kill a friendship if you can't make the payments for whatever reason. How many marriages end over financial problems, so what makes most people think a friendship can handle a default on the loan by the borrower when the co-signer is stuck with the debt and the credit hit.

boefixepa · #3 (**permalink**) 10-26-2006, 02:14 PM

I say stay far, far away from co-signing. The only situation I can see this working is for a parent to co-sign for a child just starting out and needing to start their own credit. My personal two cents is never co-sign for another adult. It's a risky situation and you'd best be able to cover that loan if you ever do! There is a reason they need a co-signer!

poundwise · #4 (**permalink**) 10-26-2006, 02:15 PM

I will not ask for someone to co-sign for me nor will I co-sign for someone else.

Joan.of.the.Arch · #5 (**permalink**) 10-26-2006, 02:33 PM

I think that in some rare, rare circumstance I might co-sign for a loan for another adult. It would have to be for a loan that was going to make a crucial differnce in their life, and they would have to be somebody in whom I had complete faith that they could go out tomorrow and get a second job and that they would do so rather than let the loan lapse back to me.

Even for my children it would only be in such a rare circumstance that I would co-sign.

I expect that never in my life will such rare circumstances occur, but I am not completely opposed to the possibility.

I do make personal loans and I will help someone out with an outright gift. But I'm not up for helping an unproven, or irresponsible, or otherwise risky person dig themselves and myself into a pit. Forget it.

Ima saver · #6 (**permalink**) 10-26-2006, 04:13 PM

I co signed once, for someone in my family. It was very difficult to get them to make the payments. (it was on a car) When they divorced, I wound up having to make the rest of the payments. (Thank goodness it was only a few payments) I would never co sign for anyone again, except, of course, my husband.

Gruntina · #7 (**permalink**) 10-26-2006, 04:18 PM

I rather make personal loans with written agreements than co-sign. co-sign can affect my credit and bill collectors if something were to happened and were not communicated well to me.

LuxLiving · #8 (**permalink**) 10-26-2006, 05:06 PM

Ready to ask? My folks did co-sign on one car for me to get me started. They both worked, we lived in the sticks, and in order for me to work I had to have a car as there was no one to give me a ride. But I would NEVER ask anyone to do such a thing. HORRORS!!!

I cannot imagine anyone else having that 'emotional' power over me anyway - giving them the right to inquire into my financial life - 'have you made your payment this month yet?' kinda dealy-who. NEVER, NO WAY, NO HOW!!!

uHHHH...I think I feel rather strongly about this.

Snoopy2645 · #9 (**permalink**) 10-26-2006, 05:20 PM

Well I never needed a cosigner for anything in my life I always worked & made my own way I have cosigned one time in my life & that was for dh's truck loan & NO WAY would I do it again I just got tired of hiim whining about his used vechiles!!!!

tabbycat31 · #10 (**permalink**) 10-26-2006, 08:51 PM

my father cosigned a car loan for me....... it was the only way that I wouldnt get taken to the cleaners (I was 19).

I was not that smart about $$$ at that time, but he jumped down my throat about those car payments. I paid off the car early.

PRICEPLUS · #11 (**permalink**) 10-26-2006, 10:20 PM

Co sign is only for geometry problems!

rduell · #12 (**permalink**) 10-27-2006, 03:20 AM

We also are opposed to co-signing for someone else. The only way I could think of it happening would be for one of our children if it was an extreme need. And even then we would probably just do a gift rather than co-sign.

Ima saver · #13 (**permalink**) 10-27-2006, 07:32 AM

I have never had anyone co sign for me either. But sometimes, it is the only way your child can get his/her own first car. I paid cash for my first car, but it was almost 10 years old.

PRICEPLUS · #14 (**permalink**) 10-27-2006, 10:09 AM

Well, I might for a child but Iwould have to review the circumstances thoroughly!

Ima saver · #15 (**permalink**) 10-27-2006, 10:35 AM

I made sure the payments were made to me, then I made the payments so they were never late. I did not want my credit rating to go down.

catlinye_maker · #16 (**permalink**) 10-27-2006, 11:11 AM

We cosigned on my MIL's auto loan. She can use the good credit and we make the payments. We've paid for her car for years now. I think that's the only way I'd cosign on a loan, if I controlled the payments, as Ima says above.

nanamom · #17 (**permalink**) 10-27-2006, 01:57 PM

I co-signed for my daughters first car loan. It was actually down as a personal loan. I made one payment for her and she handled the rest.

dossin1 · #18 (**permalink**) 10-27-2006, 02:34 PM

I don't plan to ever co-sign for someone, not even my kids. I would rather give them some money and be done with it.

LuxLiving · #19 (**permalink**) 10-27-2006, 03:10 PM

We loaned our fourth son money for his truck - such a good deal he got - but he's been trained from the get-go to bring his check home to mom and we work on the budget together, so there really is not much danger of him defaulting as I know where the little bugger sleeps at night!

vishenda · #20 (**permalink**) 10-28-2006, 04:05 PM

Quote:

Originally Posted by Ima saver

I co signed once, for someone in my family. It was very difficult to get them to make the payments. (it was on a car) When they divorced, I wound up having to make the rest of the payments. (Thank goodness it was only a few payments) I would never co sign for anyone again, except, of course, my husband.

I love to agree with you =)