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vincat · Jan 5, 2009, 06:46 AM

My brother in law cosigned a truck for my husband and he made some late payments which is havinf a negative effect on his credit and he says he has perfect credit except for this but he can't get a $2000 laon at the moment. My question is don't lenders look at the overall credit picture and see that the only negative thing on there is my husbands fault. Is there anything he can do about it. Honestly is our $4000 loan that big a mark on his credit?

JudyKayTee · Jan 5, 2009, 06:59 AM

Originally Posted by vincat

My brother in law cosigned a truck for my husband and he made some late payments which is havinf a negative effect on his credit and he says he has perfect credit except for this but he can't get a $2000 laon at the moment. My question is don't lenders look at the overall credit picture and see that the only negative thing on there is my husbands fault. Is there anything he can do about it.? Honestly is our $4000 loan that big a mark on his credit?

Well, your brother in law can always file an explanation with the credit burea but I found out years ago that a person I co-signed for didn't make the payments on time, I had no knowledge, it showed up on my credit report and stayed there, despite my protests, for about 7 years. This was simply a matter of late payments.

When you co-signed you are "assumed" to know the status of the loan - and I know that doesn't work in real life.

ScottGem · Jan 5, 2009, 07:07 AM

Ask your bro-in-law to show you the rejection letter. It should state what factors on his credit report resulted in the rejection.

But I'm with you, someone with perfect credit should not have trouble getting a $2K loan because of some late payments on one account.

excon · Jan 5, 2009, 07:19 AM

Originally Posted by vincat

Honestly is our $4000 loan that big a mark on his credit?

Hello vin:

Yup!

excon

JudyKayTee · Jan 5, 2009, 08:45 AM

Originally Posted by excon

Hello vin:

Yup!

excon

And in my case a history of late payments was entered (and I didn't even know they weren't made) and when I applied for a credit card I had to pay higher interest.

I was most definitely not happy. Explanation or no explanation, I had the penalty. Meanwhile my ex-sister-in-law (is anyone following this), who had such terrible credit that she needed a co-signer to begin with, didn't take the hit - or if she did, she didn't much care.

vincat · Jan 6, 2009, 06:35 AM

Thanks to everyone for the advice I will get in touch with him. I have told him to talk to a credit counselor to see what they say it couldn't hurt right?

excon · Jan 6, 2009, 06:42 AM

Hello vin:

I'm not sure you understand even yet...

Your brother in law doesn't need credit counseling. Before YOU came along, his credit was perfect... The ONLY thing that will FIX what your husband BROKE is 7 long years of waiting...

It's your HUSBAND who needs credit counseling, and maybe some integrity counseling too. What your brother in law needs is simply your husband to DO what he SAID he was going to DO.

excon

JudyKayTee · Jan 6, 2009, 07:03 AM

Originally Posted by excon

Hello vin:

I'm not sure you understand even yet....

Your brother in law doesn't need credit counseling. Before YOU came along, his credit was perfect... The ONLY thing that will FIX what your husband BROKE is 7 long years of waiting....

It's your HUSBAND who needs credit counseling, and maybe some integrity counseling too. What your brother in law needs is simply your husband to DO what he SAID he was going to DO.

excon

Exactly. And what is really sad is this is pretty much what my sister in law told me after she didn't make the payments on time, caused my credit rating to drop, I had to carry that record for seven years - that I should speak to an Attorney and take action against the bank.

I mean no offense to OP. Times are tough - but maybe people who need "you" to cosign or they can't get a loan are in the trouble they are in because of their mindset. The initial, "Honestly, is this $4,000 loan" such a big deal question probably says it all.

Apparently it's not a big deal to the person with bad credit but is a big deal to the person with good credit.

Sad - and, again, this one involves family.

And a note to Vincat - it's really not terribly smart to insult the very people who are trying to help you. Not smart at all.

stevetcg · Jan 6, 2009, 07:30 AM

Originally Posted by JudyKayTee

Exactly. And what is really sad is this is pretty much what my sister in law told me after she didn't make the payments on time, caused my credit rating to drop, I had to carry that record for seven years - that I should speak to an Attorney and take action against the bank.

I mean no offense to OP. Times are tough - but maybe people who need "you" to cosign or they can't get a loan are in the trouble they are in because of their mindset. The initial, "Honestly, is this $4,000 loan" such a big deal question probably says it all.

Apparently it's not a big deal to the person with bad credit but is a big deal to the person with good credit.

Sad - and, again, this one involves family.

Yes - that $4000 loan might cost a point or more on a mortgage rate. Over the life of a mortgage a point can approach $50,000 dollars or more in interest.

"Never cosign anything. If the borrower cannot qualify for it themselves, then the borrower probably cannot afford it either. There is a reason they don't qualify themselves"

Fr_Chuck · Jan 6, 2009, 05:59 PM

A lot will depend on how much other good credit is showing up currently. If they have a dozen other loans and credit cards all with perfect,

But the problem now is that credit is tight and they are looking a lot closer before the lend.

And the problem here is that the brother is liable for the loan, if the one does not pay, he will have to.

So they should have been talking and if he was going to be late, have the brother who co signed pay it for them instad of making it late.

Bu yes it can have a negative effect.

No one is down on anything either
You asked and people are explaining how easy it is and that it will show up bad