As for co-signing a loan with a newer "bf" stupid....gf and i didnt talk about each others money expenses or deciding to do much together until almost 2 years. Save that shit for when you're married hehe...

Eh, there's exceptions, it depends on the circumstances. For instance, shortly after my wife and I got married I impregnated her, and due to complications with the pregnancy we were left with a substantial amount of medical bills that insurance did not cover. This came after her being off work bed ridden for six months when we were minus her income, plus our health insurance premiums doubled during that time period. So naturally we started out in a deep hole, and we couldn't satisfy our debtors as quickly as they wished so our credit took a nasty hit right off the bat. Luckily for us we already had a home and decent vehicles so we were able get by without credit for many years, but if we had needed a loan for a car or something else we would've probably needed a cosigner, and it wouldn't have had anything to do with our lack of trustworthiness.

But yes, as a general rule it's a risky proposition, and no one should ever do it if paying off the loan themselves is going to cause financial hardship.

agreed...my post referred to little jacob saying no to any cosigned loans. i know for a fact i'd have never got a loan and started a good credit rating if someone(my father) wouldn't have cosigned for my first loan.
sec

It's a tough call, really. I've personally guaranteed several loans in the past - for a couple of employees and two friends. One person was flipping houses and the other guy had medical issues. I don't have a philosophical problem with it even though I once had to take up some slack for a buddy who fell behind. Sometimes people need a little assistance and, when I'm not insulting people for grins, I don't mind helping if the circumstances are right.

Having said that, I would have to know the person pretty damn well. It would be extremely uncomfortable, for example, to discuss co-signing a note for a girl I just started dating. I mean, if you decline, I'm pretty sure the relationship would be over. I can hear it now; "You don't trust me?". Oh, my God. Then, on the other hand, it could well turn out to be the most expensive sex you ever had. Those aren't particularly good options unless it's Gillian or Salma or somebody.

FAX

i still wouldn't do it. if my daughter can't afford a new car she shouldn't be buying a new car. she should be buying a junker like i drove when i was 17 until she can afford something new. Or, I would be better off just giving her money to put toward a new car.


if you cosign a loan for someone else for a car for example, the lender will not tell you when the person pays every payment late, but your credit score will get lower every month from the late payments. even if you notice that, there is nothing you can do to make them sell the car, because you don't own it. you just agreed to pay for it.

the bank will not tell you before they repo a car but you will get a repossession on your credit, so forget about getting any loans yourself for 7 years or so. the bank will however come and make you pay the difference between the loan balance and the price they got for the car at auction. so after all these black marks on your credit, you will still have to pay the loan off anyway.

that's cool...i understand.
what i'm saying is sometime in life, you're going to have to take out that first loan. and if you've never taken out a loan before, you're probably going to have to have a cosigner. if it's my kid, i'll go ahead and take the chance.
sec

My parents did that for my first car as well...they knew i wouldnt **** up

well even quite a few years ago when I was working summer jobs you could make several thousand dollars in just one summer. that would buy a car today, not just back then. what is wrong with them working and saving money instead of teaching them to live on credit at the very max they can afford and more, right out of the financial womb?

Everyone has different philosophies. When I was a young pup all I could afford were $500.00 clunker cars. I'd drive them till they stopped running. When I had finally had enough, and wanted a better car, my Dad co-signed for the loan. I had never had any debt so I didn't have a credit rating and I couldn't get a loan on my own name. To this day, I still have a lot of gratitude and respect for my Dad because he trusted me enough to help me out. When my daughter gets to the point that she needs my help, I will gladly do it. I think I'll get as much out of it as she will.

No, it was a bad decision. I knew it even as I did it. I let myself fall too hard too fast. And I'm also more trusting than I need to be. People can tell you shit until they're blue in the face. Until you go out and make the stupid mistake for yourself, you just don't learn. I spent my whole life learning from my older brother's mistakes. Guess I just needed to make a few of my own.

We all make mistakes. I once loaned my oldest brother $500.00. It took years to get that back. My wife never lets me forget it.

Two rules my dad always hammered into my head.

1. Never co-sign.
2. Never borrow against your retirement.

Well, I guess he tried to hammer into my head.

He was the hardest person to tell this to. I knew what he would say before he said it. What surprised me was what he said after "you knew better". He said that most people learn lesson in love the hard way. Mine was just a little pricier. My dad's the best.

My credit was good enough to get him $12K worth of loans and a vehicle. I also have a few I took out in just my name. Now, I'm back to where I was 10 years ago on my credit. Trust me, I will never forget. At least not for five years.

I not fully up to speed on the story. Is he not making the payments at all?

nothing's wrong with that...but somewhere in life, chances are you're going to have to get a loan. you can write down everything you've paid for in cash on that loan app, but if you've never taken out and paid off a loan, the lender is probably going to want a cosigner.

i'm no expert on this, outside of the fact that i couldn't get my first loan without a cosigner.
sec