The Dangers of Co-Signing

The chances are that someone will ask you to co-sign for a loan at some point. With a co-signer, a person with no credit or bad credit can qualify for a loan that they wouldn't ordinarily be able to get. However, co-signing for a loan is not something that should be done lightly. If the loan goes into default, you will be held responsible for the debt and it can impact your credit rating. Only co-sign on a loan that you are prepared to pay off yourself if it is necessary.

Ad
Flag
September 28, 20060 found this helpful

I cannot imagine co-signing for anyone. Especially for those with no/bad credit. If they have bad credit, it is most likely for lack of payment. I do not want to be paying for that person's benefits. If they have NO credit, let them start small, like with a CD or movie club..or a utility in their name. Even if it is water, usually not a large bill. Ours runs about 25 a month for four people. But I refuse to co-sign for anyone. Even if you get a promisory note saying that if they default they'll take up the slack and/or pay you back. NOPE. Let them find another dope to put on the ropes.

ReplyWas this helpful?Helpful? Yes
September 28, 20060 found this helpful

I didn't co-sign for anyone but I did get a cellphone in my name for a relative. They were suppose to put it into their name but never did. They got mad at me so wouldn't pay it so to keep up my good credit...I had to basically beg, borrow or count up my change to pay this bill off. Will never do it again have learnt my lesson. But its really a painful lesson to learn especially from someone you thought you could trust.

Ad
ReplyWas this helpful?Helpful? Yes
Flag
September 29, 20060 found this helpful

My son has an 18 year old girlfriend who doesn't have good credit (her one credit card is maxed out) and needed a car. She tried to get him to co-sign but we talked him out of it for now. He really loves her, but she spends every nickle she earns (which is very little) and really doesn't have a clue how to control her spending habits. And she always wants to go out and have fun on my son's paychecks. I'm really afraid for his future, but what can I do?

ReplyWas this helpful?Helpful? Yes
Flag
October 2, 20060 found this helpful

My stepson recently moved back into our home after breaking up with his live-in girlfriend. The also had a kid. He had to break the lease at their apt. cuz they split up and bailed. He was using his gf's car the whole time they were together. Now he's asked my wife to co-sign on a car note. He works fulltime, but is probably going to have to pay child support. I'm very worried about this whole thing and my wife just coddles to this guy. I think this is a big mistake

Ad
ReplyWas this helpful?Helpful? Yes
Flag
March 21, 20070 found this helpful

I have been with my fiance for 2 years. We are planning on getting married soon and we recently bought a car for myself together. He was the primary applicant, and I was the cosigner. I got a great car with a great rate. Well, things have gone sourer between us and he told me if we break up that I have the leave my car! I'm the one making all of the payments including insurance.....what can I do? Does he have the right to take me car from me even though I'm the one paying?

Editor's Note: There are a few unknowns here. Is the loan in his name? Is the car registration in his name? If so, even though you are making the payments, it is his car. If the car is in both of your names, both the registration and the loan, then you may have some recourse.

ReplyWas this helpful?Helpful? Yes
Flag
December 13, 20070 found this helpful

My boyfriend and I purchased a car. Well he couldn't get the car on his own so I co-signed for him to get the car, but it is paid for with cash. My question is. Are there any ways to remove your name from co-signing because if he was to have an accident or anything of that nature I am also held responsible. His name is on the registration and Insurance Im just on the car title w/ him.

ReplyWas this helpful?Helpful? Yes
Flag
October 4, 20080 found this helpful

I don't care how long you think you have known someone, DO NOT CO-SIGN FOR ANYONE. It's only your credit at total risk and you are the one they go after to get their money. Person you co-signed for gets off scott-free. We co-signed for our friend and they walked off leaving a $1100 phone bill which they no intentions of even trying to pay us back. Their only excuse is, gosh, we've had such bad lucky lately. Yeah, tell me about the bad luck. Now my grand kids have to lack for toys this Christmas because of them.

ReplyWas this helpful?Helpful? Yes

Add your voice! Click below to comment. ThriftyFun is powered by your wisdom!

Related
Categories
Budget & Finance AdviceSeptember 22, 2006
Guides
Cat playing With Elastic Cat Toy
Dangers of Elastic Cat Toys
Boys Sparring in Taekwondo Class
Teaching Children About Personal Safety
Household Cleaners
Dangers of Mixing Household Cleaners
More
🎄
Christmas Ideas!
Facebook
Pinterest
YouTube
Contests!
Newsletters
Ask a Question
Share a Post
You are viewing the desktop version of this page: View Mobile Site
© 1997-2016 by Cumuli, Inc. All Rights Reserved. Published by . Page generated on November 25, 2016 at 9:17:05 AM on 10.0.0.76 in 990 msecs. Use of this web site constitutes acceptance of ThriftyFun's Disclaimer and Privacy Policy. If you have any problems or suggestions feel free to Contact Us.
Loading Something Awesome!