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Posted in Auto Loans
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Question By
plmnjk

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0 People Helped
co-signing for a loan
the loan is for my daughter

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Don't do it.  You will regret it later.  When you co-sign you are just as liable for the loan as your daughter.  It will show up on your credit report, good or bad.  If she is late, then your credit suffers.  If she defaults on the loan, then you are legally liable to pay it and your credit suffers more.  I've heard sooo many tales where parents' credit gets trashed because they co-signed something for their kids.  Don't do it, try to find another way.

Top Contributor
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I totally agree with Addison170 and that has been the advice most financial planners give.  If daughter can't get a loan on her own merits, she should have to save up for the car she wants, or use public transportation.  You should not risk your credit score on this.

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Another "Don't Do It"   Never Ever!  ( Been there, and still there , never again! )

Well there might be only one way I would ever do it again.

It would have to be a 12 month loan,    one would have the cash in the bank ( extra monies not part of any emergency fund ) to pay the loan off at any time.  ( not sure how many people these days have that much laying around )

Other wise you will be stuck making the month to month payments for the life of the loan so your credit does not take a ding.   You might have to even pay for their car insurance.   Can you afford it?   ontop of everything else you are paying for now?   

Yeah it is your daughter or son, but there is no reason to co-sign for any car.  have them save up a few  1000 dollars and get a beater car for cash.

Good Luck

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