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Posted in Auto Loans
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Badloan

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Joint car loan with child
When co signing for a car loan for a child the lender should be sending two separate loan statements, late notices, two everything! The lender calls me after payment is thirty days late. Then I made payments since my son lost his job. Now after 40 years never over 30 days late it is on my credit reports. I disputed it and they refuse to remove it. The lender has no problem reporting both of us. They only send one statement! I also am not getting refinance offers on this loan since it is my son's loan!

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A cosignor is required when the original borrower's credit is marginal and they can't get qualified for the loan on their own.  The risk of being a cosignor is that, should the original borrower fail in any way to keep the terms of the loan, the cosignor assumes responsibility for the loan.  It is as if you took out the loan yourself. There is no need for dual billing by the creditor because the original borrower (your son) is getting the chance to prove his credit responsibility and when he failed, it fell on you.  

Sorry, but that is why cosigni[ng is such a risk. 

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That's why we stress NEVER to cosign on a loan.

The lender only contacts the co-signer if a payment is past due, or a derogatory event occurs.

Shoulda, woulda, coulda. 

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