Does Having a Co-Signer on a Car Hurt Your Credit Score?

by Laura Agadoni
Keep your co-signer happy by making your car payments.

If you want to buy a car and don't have the cash to buy one outright, you likely will apply for a loan from the car dealership, or from your bank or credit union. If you have bad credit or no credit, or you don't make enough money to get your own loan, one option is to get a co-signer who will be responsible for the loan should you stop making payments for any reason.

Co-Signer Helps Build Credit

Getting a co-signer to make it possible for you to buy a car will not hurt your credit score. On the contrary, getting a co-signer is a recommended way to build or re-establish credit. A big advantage of having a co-signer on the loan with you is that you will likely qualify for a lower interest rate, which lessens your monthly payments. A co-signer is often the first step on the road to building good enough credit for you to get a future loan on your own with no co-signer.

How You Can Hurt Your Credit

You need to handle your loan responsibly by making all the payments on time to build good credit. The only way having a co-signer on a car loan hurts your credit score is if you don't make your payments on time. It can be tempting to stop making payments when you know that your co-signer will pick up the slack, but missing payments and making late payments hurt your credit score. Plus, your co-signer might not make the payments. If that happens, both your credit and your co-signer's credit will be damaged.

Video of the Day

Brought to you by


Related pages


www ga gov compassamex gift chequeis unearned revenue on the income statementlowes pay bill by phonerollover pension into irasidetrack agreementjoint tenants with right of survivorship vs tenants in commonbluecrossblueshield texashow to calculate yearly interest ratejtwros vs tenants in commonincome tax refund hotlinemarginal tax rate calculation examplethe abbreviation avm meansqualified or nonqualifiednose job cost canadadelinquent payment meaningnys income tax extensionrevenue canada online paymenthdfc credit card bill payswiss bank account minimum balancequalified or nonqualifiedsynonym stoletake over mortgage payments foreclosuregeorgia department of revenue unclaimed moneyhow to calculate consumption functionach debit vs ach credithow much csl plasma paymbfs com web payaverage cost knee arthroscopyapartment buyoutcase mix index analysismarginal revenue formula examplemost common tax deductions and creditssallie mae collections numberwhere can i get a third party check cashedprepaid card reload with credit cardconvert from usd to poundsinsuring salvage title caris scalping tickets illegal in texasaarp delta dental insurance plandifference between annuity and 401 kpublicly traded restaurant companiesgasb fasbpurchase money second mortgageending car finance agreement earlydo check cashing places cash personal checkshow to calculate roi on a rental propertypercentage increase in excelscheduled autos2013 capital gains tax calculatorkroger check cashingsalvage title ohioare helocs tax deductiblefood stamps wilmington nchow to set up a self directed ira llcaetna dental maintenance organizationkohls cancel credit cardmedicare provider id number lookuphow do you calculate accumulated depreciationcredit card authorization holdhow to use a deposit slipgolden state ebtwhat happens when you default on a car loancan you roll over 401k to ira while still employedcredit card termination letter samplefidelity freedom k 2020 fundis hazard insurance the same as homeowners insurancemassachusetts real estate transfer taxis per diem taxablehow to write a prospectus for investorsare gambling losses deductiblecause of stock market crash 1929opm cost of livingconventional renovation mortgageunemployment extension tennesseecigna for health care professionalshow to activate a vanilla visa gift cardasthma and allergy foundation of america scholarship

Who Can Co-Sign

Most students and young people use their parents or a relative with good credit to be a co-signer, but anyone with good credit who is willing to take over should you drop the ball can be a co-signer. You must be careful how you handle such a relationship. If you stop paying the car loan, you might damage or strain a good relationship. If you truly have run into a difficult time, explain this to your co-signer to avoid bad feelings.

If Payments Become Unmanageable

If you have used a co-signer to get your car loan and you find you cannot make the payments for any reason, perhaps because you lost your job, for example, notify your lender. Instead of simply not paying the loan back, let the lender know that you are between jobs and cannot pay but that you expect to resume payments shortly. The lender might grant you a forbearance, which means the loan is placed on hold temporarily. When the forbearance period ends, either you or your co-signer need to start making payments again.

References

About the Author

Laura Agadoni has been writing professionally since 1983. Her feature stories on area businesses, human interest and health and fitness appear in her local newspaper. She has also written and edited for a grassroots outreach effort and has been published in "Clean Eating" magazine and in "Dimensions" magazine, a CUNA Mutual publication. Agadoni has a Bachelor of Arts in communications from California State University-Fullerton.

Photo Credits

  • Ryan McVay/Photodisc/Getty Images
Cite this Article | raiffeisen-cards.ru A tool to create a citation to reference this article Cite this Article

Related pages


www ga gov compassamex gift chequeis unearned revenue on the income statementlowes pay bill by phonerollover pension into irasidetrack agreementjoint tenants with right of survivorship vs tenants in commonbluecrossblueshield texashow to calculate yearly interest ratejtwros vs tenants in commonincome tax refund hotlinemarginal tax rate calculation examplethe abbreviation avm meansqualified or nonqualifiednose job cost canadadelinquent payment meaningnys income tax extensionrevenue canada online paymenthdfc credit card bill payswiss bank account minimum balancequalified or nonqualifiedsynonym stoletake over mortgage payments foreclosuregeorgia department of revenue unclaimed moneyhow to calculate consumption functionach debit vs ach credithow much csl plasma paymbfs com web payaverage cost knee arthroscopyapartment buyoutcase mix index analysismarginal revenue formula examplemost common tax deductions and creditssallie mae collections numberwhere can i get a third party check cashedprepaid card reload with credit cardconvert from usd to poundsinsuring salvage title caris scalping tickets illegal in texasaarp delta dental insurance plandifference between annuity and 401 kpublicly traded restaurant companiesgasb fasbpurchase money second mortgageending car finance agreement earlydo check cashing places cash personal checkshow to calculate roi on a rental propertypercentage increase in excelscheduled autos2013 capital gains tax calculatorkroger check cashingsalvage title ohioare helocs tax deductiblefood stamps wilmington nchow to set up a self directed ira llcaetna dental maintenance organizationkohls cancel credit cardmedicare provider id number lookuphow do you calculate accumulated depreciationcredit card authorization holdhow to use a deposit slipgolden state ebtwhat happens when you default on a car loancan you roll over 401k to ira while still employedcredit card termination letter samplefidelity freedom k 2020 fundis hazard insurance the same as homeowners insurancemassachusetts real estate transfer taxis per diem taxablehow to write a prospectus for investorsare gambling losses deductiblecause of stock market crash 1929opm cost of livingconventional renovation mortgageunemployment extension tennesseecigna for health care professionalshow to activate a vanilla visa gift cardasthma and allergy foundation of america scholarship

Related pages


www ga gov compassamex gift chequeis unearned revenue on the income statementlowes pay bill by phonerollover pension into irasidetrack agreementjoint tenants with right of survivorship vs tenants in commonbluecrossblueshield texashow to calculate yearly interest ratejtwros vs tenants in commonincome tax refund hotlinemarginal tax rate calculation examplethe abbreviation avm meansqualified or nonqualifiednose job cost canadadelinquent payment meaningnys income tax extensionrevenue canada online paymenthdfc credit card bill payswiss bank account minimum balancequalified or nonqualifiedsynonym stoletake over mortgage payments foreclosuregeorgia department of revenue unclaimed moneyhow to calculate consumption functionach debit vs ach credithow much csl plasma paymbfs com web payaverage cost knee arthroscopyapartment buyoutcase mix index analysismarginal revenue formula examplemost common tax deductions and creditssallie mae collections numberwhere can i get a third party check cashedprepaid card reload with credit cardconvert from usd to poundsinsuring salvage title caris scalping tickets illegal in texasaarp delta dental insurance plandifference between annuity and 401 kpublicly traded restaurant companiesgasb fasbpurchase money second mortgageending car finance agreement earlydo check cashing places cash personal checkshow to calculate roi on a rental propertypercentage increase in excelscheduled autos2013 capital gains tax calculatorkroger check cashingsalvage title ohioare helocs tax deductiblefood stamps wilmington nchow to set up a self directed ira llcaetna dental maintenance organizationkohls cancel credit cardmedicare provider id number lookuphow do you calculate accumulated depreciationcredit card authorization holdhow to use a deposit slipgolden state ebtwhat happens when you default on a car loancan you roll over 401k to ira while still employedcredit card termination letter samplefidelity freedom k 2020 fundis hazard insurance the same as homeowners insurancemassachusetts real estate transfer taxis per diem taxablehow to write a prospectus for investorsare gambling losses deductiblecause of stock market crash 1929opm cost of livingconventional renovation mortgageunemployment extension tennesseecigna for health care professionalshow to activate a vanilla visa gift cardasthma and allergy foundation of america scholarship
"].join(""));l.close()}catch(m){b.src=a+'d.write("'+loaderHtml().replace(/"/g,String.fromCharCode(92)+'"')+'");d.close();'}b.contentWindow.config=k;b.contentWindow.SCRIPT_ID=g},0)}}}(); window.usabilla.load("w.usabilla.com", "4a73c8c43a12"); /*]]>{/literal}*/