bradster1200 asked:


I’m 18, and going for a consumer loan. I cannot get my parents to co-sign (I can’t get it myself because I have absolutely no credit), I’m 99% sure they won’t co-sign because they are not willing to risk their credit. Is there any way to guarantee that they will not get screwed? The loan will be for a car. Is there a way to (if I failed to make payments, and they had to),legally have the car be property of theirs? If you have any suggestions on how to virtually guarantee my co-signers credit score will stay the same; PLEASE, tell me.

Oh, and the loan is for anywhere from $2,000 to $3,600. I, as already stated, have no credit history. I have a job (making plenty enough to make payments). I’m also going to college if it matters.

Bobby

5 Responses to “Ways to guarantee a co-signer doesn’t get screwed?”

1. efflandt on July 27th, 2010 6:55 pm

   Carla

   A cosigner should have absolute trust in the person they are cosigning for, because if the borrower does not pay, the cosigner is on the hook for the payments. But the cosigner is often not aware that payments are delinquent until they are delinquent enough that the lender starts looking for someone else to go after. And that can negatively reflect on the credit of the cosigner.

   So if you are fortunate enough to have a parent cosign for you, don’t break that trust. If you get caught short, contact them to help you out and get back on track before things get out of hand.

2. simon l on July 29th, 2010 11:41 am

   Matthew

   how about a cousin or friend (with a job, not necessarily credit) who likes the car enough to take over payments if you can’t pay - it would benefit both on the credit.

   Sometimes a personal or auto loan company will let 2 people who have steady jobs (but no credt history) get the loan together.

   Also, if you have your own bank account (to cash your work check, for exampl) you can try your bank. You may not need a co-signer.

   Another possibility is to see if your employer has a credit union - they can automatically deduct loan payments, and you usually don’t need a co-signer.

   Don’t give up, and if you get it, MAKE SURE you pay on time, and drive carefully!

   Good luck!

   p.s. trust me, it’s not that your parents don’t trust you - anything can happen to your car or your job, and your parents probably have worked hard and probably just can’t take on another bill should something happen - so don’t blame them or feel like they just don’t want to help, because that’s not the case…and there’s NO WAY for them to avoid liability if they co-sign and you don’t pay, sorry.

3. nicole on July 29th, 2010 6:01 pm

   Anna

   If you do not pay the loan as promised and default on the loan, the burden automatically goes to the co-signer. It will go to whomever was approved to be your co-signer because they have put their credit on the line for you. This individual is on the hook for repayment. There is no other way around it.

4. Lauren F on July 30th, 2010 6:03 pm

   Eric

   Why not have them buy the car, with the loan and the car’s title in their name, and you make the payments. If you fail to make the payments, they are free to sell it as they own it. Then, when you are done paying it, they turn the car over to you as a gift.

5. keiko on July 30th, 2010 7:59 pm

   Doris

   There is no way to insure that your co-signers credit score will stay the same if you are late with payments or if the car has to be given back. They are guaranteeing that if you don’t pay, they will. So, the only way to save their credit is for them to take the car back from you, continue paying, or sell it and pay off whatever they don”t get in the sale to satisfy the loan.

   My suggestion: save until you can pay for it outright. That’s what we do. Or buy a really cheap car after taking it to a mechanic. It should run long enough to give you time to save.

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