Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Credit Report
Profile Image

Question By

0 Contributions
0 People Helped
Co-Signing on a loan
A relitive in purchasing a home and needs a Co-signer. How will co-signing on a home loan effect my credit score?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
9980 Contributions
4257 People Helped
Most Helpful Response

Recommend You Don't!!!

Helpful to 2 out of 3 people

Buying a home usually requires a mortgage of up to 30 years.  Do you want to be obligated to pay for your relative's home for the next 30 years?  If they should default, you'll be paying off the loan and you won't even be living in that house!!

And, if you should want to buy your own house in the future, this mortgage load will kill that chance real fast!!

FYI-The majority of professional financial planners advise against co-signing anyone's loan and I have to agree.  If your relative can't afford the down payment and monthly payments for a home loan and can't qualify for a mortgage without a co-signer, then they shoulkd either save up the money to buy a house outright or continue renting (which isn't a bad idea, really).

Top Contributor
119 Contributions
1139 People Helped

Agreed with the previous commenter. he answer is ABSOLUTELY NOT. You need to understand that by being a co-signor it is as though you are the home owner. Not only will you have hundreds of thousands of debt on your credit from the loan, any negative thing that can happen in the next 30 years will hit your credit as though it were your home. Every 30 day late payment will be on your credit, if the house goes into foreclosure that will be on your credit and you will be financially responsible for paying for that, meaning they will be hunting you down for payment.  Co-signing a 3-year car payment is one thing, but a 30-year home loan, absolutely not. You need to tell that relative to take whatever downpayment they have saved up and put that toward paying off their other debt and improving their credit.  If they need a co-signer, they have no business buying a house. Tell them to repair their credit, refer them to this site to help them, and once their credit is repaired, then apply for their home. They can easily raise their score significantly in 6 months and try again (I raised mine 100+ points in 6 months).

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.