Free Ebook.


Enter your email address:

Delivered by FeedBurner

« When to Take a Pension | Main | One Year Ago This Week -- August 24 »

August 24, 2007

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

I think that this can vary a bit. While someone with almost no credit history may be a poor credit risk to the bank, someone who knows the person well may be better able to assess the risk. The most obvious example could be a parent or a sibling signing for some just entering the working world.

I had to get a cosigner for my $8,000 car , but was able to get a $110,000 mortgage on my own. Go figure.

I co-signed for my fiancee on her car because her credit was less than stellar back in the day. I think there are a few exceptions, but not many that I can think of.

The risk lenders assign to a house is less than they assign to a car - after all it's hard to drive away with your house!

I too have a no cosigning policy - and boy was my wife mad when she couldn't get that new car :)

There are only a few instances where co-signing makes sense; offspring with no prior credit record, or helping a well-known person (fiancee, sibling, or other close relation) when they're recovering from bad credit or beginning their credit history. Other than those examples, though, I think you're absolutely right to not co-sign.

A friend was in dire need of cash, well, an ex. She bought a car, and wanted me to cosign, I said no. Then somehow she bought the car and needed money for the insurance, she constantly called asking for money saying how desperate she was, I gave her $1100. I wanted to just say NO, but since she needed the car to go to work and make $$$, I say i'll just help someone out. May not get the money back...but...sometimes it's hard if someone really needed the money for something "good".

How do student loans fit into this scenario? Most students do not have the credit or the money to afford college, so should parents cosign student loans?

The bible sums it up. It is called "surity" in the KJV. DON'T.

If you are asked to co-sign for someone then that person is trying to swindle you or they are trying to buy something they cannot afford.

The comments to this entry are closed.

Start a Blog


Disclaimer


  • Any information shared on Free Money Finance does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. All posts are © 2005-2012, Free Money Finance.

Stats