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Posted in Auto Loans
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Question By
austingleason

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Auto Loan Co-Signing
If I could-sign for an auto loan, is my credit going to be affected if the person pays every payment on time and never defaults?

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You are not an owner of the account, just the person legally responsible for the debt.  You will not get credit for any timely payments they make.  You won't get credit for the reduction of the loan.   This is reserved for a co-applicant.  The only credit you will get is if they default, then you will have it reflected on your account if you don't pay as demanded.  Usually,if the person does not pay, you don't get payment options, you get a lump sum bill for the amount owed.  You either pay it or see it on your credit report as a collection.

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*CO-SIGN

**Co-sign, not "could-sign" .. Sorry, stupid auto correct

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When a person needs a co-signer, it means their credit is insufficient to grant them a loan on their own merits and the co-signer will GUARANTEE that the payments will be made on time, every time.  Too often, the co-signer ends up paying the loan and possibly has an adverse effect on their credit score. Can you afford this? 

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