cduval
Member
Cash: $ 1.15
Posts: 19
Joined: 05 Nov 2006
|
| < Co-Sign Help > |
 |
|
If I get my father to co-sign a loan for me, does his co-sign on my loan affect his own ability to take out a loan? In other words, let us say he sells this house we live in now (bought with a loan) and now has the ability to take out another home loan for a new house - would co-signing my loan stop him from being able to take his own loan out? Would the bank see that he has a co-sign with me and decline him for it? Explain in detail, fully, and clearly please. Thanks in advance.
|
Tue Nov 14, 2006 5:45 pm |
|
|
efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
|
http://www.myfico.com/ has info (PDF pamphlets) about what counts towards a credit score. 30% is amounts owed, but that includes a number of factors including what percentage of his available credit he is using. New credit counts 10% outside of that and 10% is types of credit in use, not that important unless there is a shortage of other info. A few credit inquiries and one installment loan are not going to have as much impact as applying for a bunch of credit cards at once or max'ing out existing cards.
One of the most important factors is making payments on time, which counts 35% of the score. So make every effort to make sure the loan he co-signed for you is paid on time. Or if you get in too deep, ask for his help before blemishing his record.
If his record is good with his current mortgage and other credit, I can't see him getting turned down for a new home loan unless he co-signed for you to buy a home and you drop it all on him by defaulting.
|
|
Wed Nov 15, 2006 12:43 am |
|
|
cduval
Member
Cash: $ 1.15
Posts: 19
Joined: 05 Nov 2006
|
Can a co-sign increase a credit\beacon score once the co-signed loan has been paid off early?
???
|
|
Wed Nov 15, 2006 1:03 am |
|
|
UrCredit5
Member
Cash: $ 3.05
Posts: 14
Joined: 29 Aug 2005
|
A co-signer is someone who is responsible for a loan if the primary person taking out the loan can't make the payments. So yes, it is on the co-signers credit report that they are a co-signer for someone else. And no, it doesn't necessarily mean that they are going to be denied for another loan. Denial is pretty much based on a debt to income ratio. So if the co-signer doesn't have overwhelming debt, they have a good chance of being approved for a mortgage or whatever else they want to apply for.
|
|
Thu Jan 11, 2007 5:48 am |
|
|
|
