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Old 10-21-2019, 10:32 AM
 
Location: 5,400 feet
2,811 posts, read 2,744,177 times
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[quote=anoneemus1313;56456245]
Quote:
Originally Posted by athena53 View Post
Except that it's leased. The leasing company owns the car.

Let's call the person who signed everything Person 1 and the person with the bad credit who's actually using the car Person 2. My understanding is that this does zero for Person 2's credit unless Person 2 also signed the lease. The fact that Person 2 is now getting credit offers, though, might imply that the lease has been added to his/her credit records. Did Person 2 actually sign the lease?

My bad it was person 1(good credit) who continued to get the offers. We tried to convince person 2(bad credit) apply for a credit card with a low limit and pay it off over time 3-6 months regardless of interest. Some say pay off the balance every month which is a good strategy but credit card companies want to see the ability to make regular on time payments several months in a row.

Since they consigned for person 1(good credit) their name is on the lease. But all mail, bills etc are addressed/mailed to person 1.
Carrying a balance on a credit card, and paying interest, will not improve your credit score any more than paying the balance owed monthly. You pay extra money for nothing.

It is rarely, if ever, a good idea to cosign someone else's debt. You are agreeing to assume the other's liability while receiving nothing in return.
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Old 10-21-2019, 10:32 AM
 
7,758 posts, read 3,260,937 times
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The rule of thumb should be that when you co-sign for someone else you should be prepared to pay the debt off in full. If not, do not co-sign.
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Old 10-21-2019, 11:10 AM
 
Location: Nashville, TN
303 posts, read 390,786 times
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Quote:
Originally Posted by anoneemus1313 View Post
....
I don't think it will have the effect they're looking for. Also couldn't the person with good credit have their score lowered since the co signer is paying the bill. I guess if they pay on time the person with good credit gets credit for another bill paid.

No matter what the effect they were looking for or hoping to get, etc. the point is that there's a reason why people don't qualify for loans from financial institutions and anyone who decides to help them whether for altruistic reasons or for personal gain is stupid. Yes that's harsh, but if the person can't be trusted to pay the bills when it's in their own name, why would they pay when it's in someone else's name? Plus when they default, the cosigner owes ALL the money and will have to pay it, not to mention that their credit will already be ruined by the time the bank, etc contacts to get them to pay.

It's better to give the money to the person instead, or loan it to them if you must, but never cosign.
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Old 10-21-2019, 02:10 PM
 
40 posts, read 11,559 times
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Quote:
Originally Posted by veg-gal View Post
No matter what the effect they were looking for or hoping to get, etc. the point is that there's a reason why people don't qualify for loans from financial institutions and anyone who decides to help them whether for altruistic reasons or for personal gain is stupid. Yes that's harsh, but if the person can't be trusted to pay the bills when it's in their own name, why would they pay when it's in someone else's name? Plus when they default, the cosigner owes ALL the money and will have to pay it, not to mention that their credit will already be ruined by the time the bank, etc contacts to get them to pay.

It's better to give the money to the person instead, or loan it to them if you must, but never cosign.

I agree with everything you said. The person with bad credit was given a huge 5 figure loan to pay off debts and get themselves a down payment for a house/mortgage. Instead they bought a luxury car, had it repossessed and lived large for several years. That's what I don't like about cash but you are absolutely right give them the cash and be done with it no liability or obligation.
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Old 10-21-2019, 04:30 PM
 
Location: Phoenix, AZ
2,049 posts, read 947,794 times
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Quote:
Originally Posted by anoneemus1313 View Post


I don't think it will have the effect they're looking for. Also couldn't the person with good credit have their score lowered since the co signer is paying the bill. I guess if they pay on time the person with good credit gets credit for another bill paid.
And if the "authorized driver" stops paying, the co-signer gets good and screwed because he's on the hook for the payments and might not be able to locate the car.


It was an incredibly stupid idea and I'm betting somebody did it for a romantic partner while love was in bloom.
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Old 10-21-2019, 04:40 PM
 
2,980 posts, read 1,139,702 times
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Quote:
Originally Posted by adjusterjack View Post
It was an incredibly stupid idea and I'm betting somebody did it for a romantic partner while love was in bloom.
Do you know my history?

Back in 1982 when my Bio Clock starting driving me nuts I was dating a guy who was a financial basket case and was in other ways difficult to live with. I forged ahead anyway. He had a brand-new Camaro on order- loaded, of course. His credit was in the toilet and he had almost zero in savings- all he could put towards the car was what he was getting for his old Camaro. But... I'd just paid off my own car and had a sterling credit rating.

It started that I'd take out the loan, but the car had to be titled in his name in order to get the great insurance he got through a company that covered only employees of certain companies (NJ Manufacturers). He qualified; I didn't. We ended up with a tortuous pile of paper naming him as the owner but with him agreeing to put "his" car up as collateral for "my" loan. I had no expectations that he'd ever make a payment and he didn't disappoint. (I should mention that I'd moved in with him and he was paying the mortgage so I guess it was reasonable.)

We married but it ended in flames 13 years later. At least I got a great son and wonderful grandchildren out of it. And now, widowed form a happy second marriage, if a guy ever expected a similar deal I'd run in the opposite direction.
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Old 10-22-2019, 03:42 AM
 
7,097 posts, read 3,338,240 times
Reputation: 18552
Quote:
Originally Posted by veg-gal View Post
No matter what the effect they were looking for or hoping to get, etc. the point is that there's a reason why people don't qualify for loans from financial institutions and anyone who decides to help them whether for altruistic reasons or for personal gain is stupid. Yes that's harsh, but if the person can't be trusted to pay the bills when it's in their own name, why would they pay when it's in someone else's name? Plus when they default, the cosigner owes ALL the money and will have to pay it, not to mention that their credit will already be ruined by the time the bank, etc contacts to get them to pay.

It's better to give the money to the person instead, or loan it to them if you must, but never cosign.
Harsh indeed!

I prefer to lend a hand when I myself had someone who entrusted that I would make good on a gesture.

My brother co signed when I was first establishing credit. Trust me I couldn't have picked a better person who made it clear from day of signing...Miss one payment sis and you KNOW what I will do. I pretty much paid that loan off early because I did NOT want the wrath of my brother upon my doorstep.
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Old 10-22-2019, 07:12 AM
 
2,980 posts, read 1,139,702 times
Reputation: 7860
Quote:
Originally Posted by Nov3 View Post
Harsh indeed!

I prefer to lend a hand when I myself had someone who entrusted that I would make good on a gesture.

My brother co signed when I was first establishing credit. Trust me I couldn't have picked a better person who made it clear from day of signing...Miss one payment sis and you KNOW what I will do. I pretty much paid that loan off early because I did NOT want the wrath of my brother upon my doorstep.
When DS bought his first house I offered to co-sign if necessary. (It was a starter house in Des Moines and I could have handled the payment if it came to that.) I explained to him that the title would be in his name but if he defaulted the bank would come after me. His immediate response was, "I'd never do that to you". I told him that was why I was offering! Fortunately he was able to get a mortgage on his own at a good rate through a program that loaned to first-time buyers with good jobs but sparse credit records.
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Old 10-22-2019, 09:54 AM
 
Location: Living on the Coast in Oxnard CA
16,242 posts, read 27,508,395 times
Reputation: 21542
My wife co-signed for our son so he could get his first car. Her credit score improved. Our son made the payments. Not sure how my son's credit score was affected.

Note: We would never cosign for anyone other than one of our kids and only if they still live with us, and we are able to make the payments ourselves. We saw that he paid the carpayment each month. He paid more than the note each month. He also paid the car off a year early.
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Old 10-22-2019, 11:58 AM
 
531 posts, read 277,210 times
Reputation: 721
Don't do it.

You can easily increase your score by going through the basics of ie; getting a secured credit-card, credit builder loan.
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