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firstone
Guest
0.10 Dollars($)
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 Posted: Fri Dec 23, 2005 4:59 pm Post subject: role of a co-signer |
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This is the first time I went out to borrow money for my home. I don't have any bad credit risk. Then why the lender is asking for a co-signer?
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 jameshogg
Joined: 20 Dec 2005
Posts: 1835
Location: nevada
272.70 Dollars($)
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| Posted: Fri Dec 23, 2005 5:21 pm Post subject: |
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Hi,
Lenders are more cautious about the first time borrowers as they can not predict about them. You need not be confused by that.
This does not indicate that you have a poor credit risk. They can't take decision on you as they can't gather much information about you without a credit history.
It has been found that only 10% of the borrowers are asked for a co signer mainly because they have little or no credit history.
James |
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garry
Guest
0.10 Dollars($)
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| Posted: Fri Dec 23, 2005 5:28 pm Post subject: |
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| Is there any thing to worry being a co-signer? |
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samuel547
Guest
0.10 Dollars($)
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| Posted: Fri Dec 23, 2005 5:35 pm Post subject: |
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There are risks in becoming a co-signer. The lender can easily reach you in case the borrower is unable to repay.
Then you are going to get trouble with your finance and property. Again it may ruin your credit report. |
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jameshogg
Joined: 20 Dec 2005
Posts: 1835
Location: nevada
272.70 Dollars($)
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| Posted: Fri Dec 23, 2005 5:48 pm Post subject: |
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Hi,
Definitely you need to be cautious in being co signer. Co-signing a loan means that you are taking responsibility as a co signer to repay the loan in case the borrower defaults.
So you should not co-sign a loan for a person whom you don't know much personally. Just don't get relaxed since the borrower is having a good job and belong to a well to do family.
You never know when he may lose his job or whether he has the honest intention to repay and feels responsible for the loan.
If the borrower is not responsible then you can get sued by the lender and it will have a negative impact on your reports.
James |
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pavlova
Guest
0.10 Dollars($)
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| Posted: Fri Dec 23, 2005 6:04 pm Post subject: |
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Hi Garry,
As a co-signer you are legally responsible and in case of any default on the borrower's part the effect on your credit report will be the same as your own loan will have. These things do happen and so you have to judge carefully the situation and the person before signing.
To avoid the embarrassment you can ask the lender to inform you whenever there is any payment problem on the borrower's part and try to limit your responsibility to the value of the loan only and not to any late fees.
Pavlova |
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gmom
Guest
0.10 Dollars($)
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| Posted: Mon Jan 09, 2006 3:04 pm Post subject: co signer |
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| Does the fact that I am a co signer negatively impact my credit score? |
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jameshogg
Joined: 20 Dec 2005
Posts: 1835
Location: nevada
272.70 Dollars($)
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| Posted: Mon Jan 09, 2006 3:12 pm Post subject: |
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Hi Gmom,
You are assuming full responsibility for the debt by so-signing a loan. So, another loan is added in your name. But this won't affect much so far the payments are regular.
If there is any default in payments, then it is definitely have a negative impact on your score.
Feel free to ask for more doubts.
James |
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