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Posted in Auto Loans
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Question By
Uche1989

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Im stuck in making a decision whether I should cosign for someone or not
My boyfriend does not have good credit. So he would need me to cosign for an auto loan. I'm personally not comfortable with that. We just went to the dealership and both my credit and his credit was checked. A bank finally accepted us. I'm really iffy about it and do not want to go through with it but the dealer is telling me that since the bank accepted me and if I opt out it would mess up my credit? Is this true?

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Helpful to 13 out of 13 people

When in doubt, DON'T!!  You know that, should your boyfriend default on the car loan, you get stuck with the bill and the "ding" on your credit score. Inquiries have far less impact than most people think, so that is not a big problem at all.  Don't get pressured into taking out a loan when your 'gut feeling' says it is a bad idea, because it just might end up being exactly that---a bad idea.

Reply by
Michael8464

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Helpful to 2 out of 3 people

inquires stay on your report for 2 years, it does lower your score...

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Don't do it!!

Helpful to 10 out of 10 people

First, it will not mess up your credit by rejecting the loan, the salesman is telling you lies trying to make a sale, so that goes to show right there that they are not trustworthy enough to puchase a vehicle from. Secondly, there is a reason that your boyfriend has bad credit, he probably does not like to pay his bills!!! Tell him that you are not comfortable cosigning, because if you do it will affect your "debt to income ratio" and that may result in you being denied for a loan that you may need sometime in the future. If your boyfried pushes or cannot respect your decision, then he is probably not the guy for you. Cosigning this loan is something that you should NOT do.

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Helpful to 10 out of 12 people

I honestly would never do it.  A little story about me.  About a year ago I had abysmal credit.  I had no real history and what I did have was negative.  The local hospital screwed up my bill and, rather than sending it to me, sent it directly to collections THEN sent it to me.  I had actually thought it was totally covered under worker's comp because it was a work related injury and it should have been totally taken care of at that point.  I found out after it was in collections that the hospital only attempted to get it covered after 9 months of waiting which meant it was a rejected claim.  Needless to say my credit score was under 600 at that point.

I did what I could to get a few things removed which I was able to successfully do by requesting confirmation of the debt from a few collectors.  I still didn't have an awesome score but a few of the major problems were gone.  Because of that I was able to get a really bad Best Buy credit card that helped me slowly nudge my score up high enough to grab two more mediocre cards.  It may not be the best way but it was a relatively fast way to raise my credit score enough to actually be in the high "poor" range according to Credit Karma.

At this point I just sort of winged it and contacted Ford to attempt to get pre-approved for a car.  I didn't expect much of anything and lost even more hope after a moderate run around and probably 20 different phone calls and trips to the dealership.  Eventually they called and, much to my surprise, said there was a 2015 Focus waiting for me if I wanted it.  No cosigner, no down, no interest, 72 month, $19,500 loan.  $263.90 a month for the life of the loan and I am only pulling in ~$1600 a month right now.

Basically, my advice is for him to find a credit card he can actually get on his own, use it properly, monitor his score with Credit Karma, take the advice here, and eventually try again on his own.  It really didn't take all that long to repair my credit enough to get a loan at all.  I received 0% APR because I am a student and Ford removes the APR if you prove it.  It was 1.9% APR prior to proving my status.

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Dont

Helpful to 7 out of 8 people

I co signed and 54 payments late i lost 200 points now i habe no car and no credit but my ex has a car and i am held 100'% responsible. DONT DO IT

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Co-sign loan for bf ??

Helpful to 4 out of 4 people

Highly advise against this, especially since you already have reservations and don't feel comfortable.   Your BF has a problem: bad credit.   That doesn't mean you have a problem; he does.   It's not your problem.  That said and understood, if you are about to be married, and he needs a cheap car to get to work (under $4000) and you can afford to take the risk ( you two break up, and he quits paying for the car, and you are still liable and understand that you have to pay for a car that isn't even yours or your credit will take a dive--and you will still be on the hook for the amount owed) by all means, if it still makes sense and you understand your liability, go for it !!

Reply by
Mxamus

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Helpful to 1 out of 2 people

Don't !

go with your gut!

Some notes last longer than most relationships last. Even marriages. Dealers lie to there advantage , they'll Ladd at you when your stuck making those payments and wanting to bail out. I know this by experience ,daughter in law signed for her mother. She was slow pay, almost repossessed and over finance on the car( owed more than it's worth). Her poor pay, ruined her credit. Don't ever consign unless your willing to make payments when he's late(they'll call you at home and work until paid. If repossessed they'll judgement you and give you the poor pay and repossessed on your credit. Love and Credit don't mix. If he can't get a family member to help. He's and awfull risk!

Your on the note until paid, there's no "refinance", "drop you off the note "or " won't effect your credit"

Sincerly,

Dealer finance Mgr.

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Helpful to 4 out of 4 people

I agree with everyone else... If you are having doubts, and it makes you uncomfortable... Don't do it. The Dealer is full of crap, and you won't get dinged for not accepting the loan. Your Boyfriend might not be happy, but this is YOUR Credit. not his. Unless you have the resources to fully pay for this Auto when your BF defaults. Don't do it!  Instead, maybe your BF can go to the many dealerships that help people with Bad Credit get loans for cars. Getting the loan himself will then help him to start to repair his bad credit.  Don't mess up your own good credit for a Boyfriend. Heck, I'd even be wary about doing it for a Husband. If he can't get a loan from the dealership and lenders - Why would you want to give him one? 

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NEVER

Helpful to 2 out of 2 people

 I hope you haven't made this mistake yet.  NEVER EVER EVER co-sign for ANYONE!  Especially not a boyfriend.  And you backing out of a hard inquiry will not mess up your credit.  Financing a person who can't manage their own affairs will.  Be smart.  No woman should EVER finance a man.  They should run from men like that  when they ask.  

5 Contributions
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Don't

Helpful to 2 out of 2 people

Yes and do not do it. it will affect your credit as a debt, lower your credit score, and 1 late payment, or he takes off with the car you're in trouble. find out why his credit score is so low? what debts he owes and why they aren't paid...  thats your answer

Credit Karma Team
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Helpful to 2 out of 2 people

Hi there,

Thanks for posting. Cosigning a loan is a big responsibility and if you're not comfortable with it, don't let anyone pressure you. You can learn more about cosigning here: https://www.creditkarma.com/article/cosigning-a-loan

You may have a hard inquiry on your credit report for 2 years from applying for the loan, but it will not "mess up" your credit if you do not obtain the loan. 

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1 Person Helped

Run, don't walk.

Helpful to 1 out of 1 people

Never cosign.  And certainly not for a boyfriend.

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