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If I am a co-signer on my daughters car - will that happer me buying a new car
does this co-signing on her car loan affect my credit rating

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Will it affect your credit rating?

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In a word?  Absolutely!

Rule #1:  Never, ever cosign a loan for anybody.  Unfortunately, us moms and dads have a certain obligation to our children.  This is one time when each of us has to bite the bullet to get our kids on their credit path.  Let's face it.  I could have never purchased my first car without my dad.  And, there is going to be that time when I have to repay that favor to my son when the time comes.

Actually, there is no such thing as a co-signer anymore.  Now it's "Co-Owner".  And just as the term states, you own that car as much as your daughter.  When she makes the payments, you get credit on your credit report.  If she falls behind, your credit suffers, too.

Will it keep you from buying a new car yourself?  It depends.  If you are currently financing your car and you trade the car in, the answer is "No".  You should have no problem here.

If you currently have no car loan out and are looking to finance a new car, then the answer is "Possibly".  It will depend strictly on your personal situation, but odds are, you have a 90% chance of getting approved with NO problems.  So, unless your daughter has car payments of $800 or $900 per month, I wouldn't worry too much about this situation.

If you have a current car loan and plan on keeping that car, then the answer is "Quite Possible"  Most incomes will prohibit banks from allowing borrowers to carry 3 car loans.  (Remember, your daughters loan counts as one car loan).  You would have to have an income high enough to substantiate a 3rd payment, and a very good credit history to prove you can handle a third car.   It's not impossible, just unlikely.

If you think you're riding on the edge, then it's a good idea to have money to put down.  I advise enough to at least cover your tax, title and fees as those particular items do not add to the value of whatever you are buying.

Lastly, keep in mind that you do not have to be on your daughters loan for the entire 6 years.  As she makes her payments and obtains additional, new credit, you can ask the bank to remove you from her loan.  Typically, it's a good idea around the 3rd year to make this request.

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This was very helpful! My mom consigned for me yesterday but since she has the best credit they put her name first and me as the cosigner! So she had her name on the top of everything! Is that right? 

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Cosigner Car for Daughter

My daughter i consign for a loan on care she decided to go bankrupt wife new nothing about thism What happens now AZ

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