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    pyon's Avatar
    pyon Posts: 5, Reputation: 1
    New Member

    Feb 21, 2008, 10:57 AM
    Me and co-signer
    I have a question.
    I recently got an auto-loan with my friend co-signed for me, since my credit wasn't good enough to get a regular loan.

    Supposedly, I was in the prime and my friend is co-signer... which I don't really understand what they meant by me being prime...

    Anyway, I have no problem paying my monthly payment..

    Here is my question..

    My friend who co-signed for me is thinking to buy a condo, and I'm starting to wondering if my friend being my co-signer, (even I pay my loan on-time) would it cause my friend harder to get a loan because it will be consider my friend has additional debt in her credit?

    I'm thinking it will cause any on her side, I'm thinking to re-finance it and just my name in a loan..

    I wonder whoever is knowledge-ble about this credit thing.. what do you think?

    I haven't ran my credit score now, but my FICO score for "now" is 640+.
    xphelper's Avatar
    xphelper Posts: 220, Reputation: 29
    Full Member

    Feb 21, 2008, 11:57 AM
    Yes, being a co-signer for someone else could have an impact on the co-signer's ability to secure future financing. Now, if you were to default on that loan and disappear, they would not spend any time looking for you... they would simply go after the co-signer for restitution. I'm sure that would never happen because you are his friend; however, it is always best to finance a loan yourself because it improves your credit score (assuming one pays on time) and doesn't impact anyone else's ability (eg, the co-signer) to secure financing in the future.
    pyon's Avatar
    pyon Posts: 5, Reputation: 1
    New Member

    Feb 21, 2008, 01:00 PM
    Thanks, xphelper for the info.
    Yes, I understood it is always better to finance a loan myself.
    Since I've already had my friend co-signed now... I'm trying my best to prevent any issue for my friend getting house finance (meaning better interest rate)... in the very near future... BESIDES me paying on-time.

    If I were to re-finance the loan just for myself (basically, take off my friend's name off from my loan), would it be the same score/situation/or whatever when my friend apply for house lone, OR would be a lot better off for my friend not being my co-signer anymore?
    pyon's Avatar
    pyon Posts: 5, Reputation: 1
    New Member

    Feb 21, 2008, 01:19 PM
    Another question popped into my mind now...
    Did this having co-signer to finance a car is hurting my credit score now..

    Even I'm being paying the loan on-time, how bad my friend co-signe for me for her credit score.. would it lower my friend's credit score significantly?
    xphelper's Avatar
    xphelper Posts: 220, Reputation: 29
    Full Member

    Feb 21, 2008, 02:44 PM
    Hello pyon,

    Once his name would be removed, and that information has been reprted to the 3 major credit bureaus as such, your friend would be in a position to secure bettern financing (most likely). However, if your friend already had an excellent credit rating, I'm sure that he will still be OK... even with co-signing for you. Hey, you're lucky to have a friend like him!

    And having a friend co-sign for you is not hurting your credit score. In fact, its actually helping it! Here's why. To improve ones credit score, there must be documented evidence of that person's ability to keep bills current and pay an obligation over an extended period (which you are doing successfully right now). However, if your friend never signed for you, how would you be able to exhibit that ability to pay over an extended period? Now, if you continue to make those payments on time, it can do nothing but improve your credit score but by how much is anybody's guess.
    pyon's Avatar
    pyon Posts: 5, Reputation: 1
    New Member

    Feb 21, 2008, 03:06 PM
    Thanks, xphelper!
    Now I have much better idea about this co-sign thing..

    When I bought my car (honda dealership), I had credit score 620+, and the honda finance guy told me that for my score, there is no loan but a loan for bad credit loan.

    Therefore, my friend who was helping me to buy a car volunteered to be my co-signer. (such a nice friend... )

    I have had paid off my used car on-time, but the finance guy told me in my history, I had consolidation program, that was kiiling me.

    I should have known, when I decided to do the consolidation... but now it's all in history, just have to bring up my credit score.

    Thanks again, I will see if I can find any re-finance so that I can relase my friend's name off from my car loan..
    xphelper's Avatar
    xphelper Posts: 220, Reputation: 29
    Full Member

    Feb 21, 2008, 03:16 PM
    Bingo! You got the idea now...

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