Being a Co-signer

[Hermosa11]

If my credit is not that perfect, but getting back on the mend, and ds asks me to co-sign for something (Appx $2,200 purchase) would that pull my credit score back to the dumps? or what?

 

[Hermosa11]

Bumping for another audience...

 

[EthansMom]

The best thing you can do to improve your credit is to continue making payments on your current debts and DECREASE your debt load. One thing that impacts your credit rating is your debt to income ratio, which increases any time you get more debt. Additionally, your credit could be negatively impacted if you co-sign on the loan and your DS is unable to make the payments or makes the payments late.

My advice, continue to pay down your own debts. Teach your son to save in advance for his large purchases -- he'll value them more if he has to work hard to earn the money for them.

 

[ducklite]

It might knock a few points off, but it could also help if all payments are made on time. If your credit is "iffy" the lender might not accept you as a co-signer to begin with.

Anne

 

[ElizaB39]

If my credit is not that perfect, but getting back on the mend, and ds asks me to co-sign for something (Appx $2,200 purchase) would that pull my credit score back to the dumps? or what?

Post on the budget board as well.

Co-signing means you have all of the liability and none of the benefits of the deal.

 

[ChibiJones]

I doubt I would co-sign for anybody on a loan.

You need to ask yourself if you can afford those payments if he stops making them. If your answer is no - that's your answer to him.

What is he buying for $2200? That would have some impact my decision. Any sort of luxury item, absolutely no way would I co-sign.

 

[phantom728]

The co-sign issue is definitely a personal choice. You just need to think whether payments will be made on time. Credit agencies report any late over 30 days and they stay on your credit for 7 years or more. There are also some credit lates that are worse than others, such as a mortgage late.

Another thing to help with your credit score is to keep lower balances on revolving debts (credit cards). They look at your credit line and how much of that balance is in circulation. If you have a $20,000 limit with less that $5,000 on it, that is better than a $20,000 limit with $15,000 on it.

I work for a mortgage company and see these types of things all the time.

Not an easy decision. I wish you luck.