Posted on: 11th Oct, 2011 10:26 pm
Hello there… I need some help asap. One of my friends cosigned for my motorcycle. I paid the debts on time for the next 5-6 months but after that I couldn’t pay for it anymore as I started facing financial problems. Now my friend’s credit score has gone way down and can't even buy a house on his own now. I don’t want him to suffer because of my faults. Is there any way I can help raise his score? Any suggestions would be appreciated.
hi galahard,
you will have to refinance the loan that you have taken out for the motorcycle in order to transfer it solely in your name. this will help you remove your friend from the loan docs and then he can slowly improve his credit scores so that he can buy his own house. in case you don't get a refinance, make sure to modify the loan. once you modify the loan, you will get better terms and conditions to pay off the loan. once you start paying off the loan, your friend's credit scores will also start improving.
you will have to refinance the loan that you have taken out for the motorcycle in order to transfer it solely in your name. this will help you remove your friend from the loan docs and then he can slowly improve his credit scores so that he can buy his own house. in case you don't get a refinance, make sure to modify the loan. once you modify the loan, you will get better terms and conditions to pay off the loan. once you start paying off the loan, your friend's credit scores will also start improving.
I'm sorry to say the damage is already done to his credit scores. As a cosigner, he's just as responsible for making timely payments on the debt as you are.
The best thing you can do at this point is refinance and get his name off the loan, but it doesn't sound like that will be an option for you due to your financial situation. How far behind are you on payments? Is your friend willing to help you get caught up?
The best thing you can do at this point is refinance and get his name off the loan, but it doesn't sound like that will be an option for you due to your financial situation. How far behind are you on payments? Is your friend willing to help you get caught up?
Hello galahard?
The lenders are not going to take off the name of the cosigner so easily because if the primary party fails to make the payment it is the responsibility of the cosigner to pay. The co-signer has promised to pay off the loan if the primary borrower defaults.
It is rare, and would be exceptional, for a creditor to allow a co-signer to be released from liability from an outstanding debt. Usually, the only way this can be accomplished would be for the primary borrower party to refinance the loan in their name only. Call the creditor to see what options they recommend and will accept. At the very least, let this be a lesson you learn from. You may have paid for it with your credit rating for the next 7-10 years. When you co-sign for someone else, you are taking a risk that a creditor (who lends money as a business) is unwilling to take. There is always a reason they won't take that risk. Why should you?
:idea:
The lenders are not going to take off the name of the cosigner so easily because if the primary party fails to make the payment it is the responsibility of the cosigner to pay. The co-signer has promised to pay off the loan if the primary borrower defaults.
It is rare, and would be exceptional, for a creditor to allow a co-signer to be released from liability from an outstanding debt. Usually, the only way this can be accomplished would be for the primary borrower party to refinance the loan in their name only. Call the creditor to see what options they recommend and will accept. At the very least, let this be a lesson you learn from. You may have paid for it with your credit rating for the next 7-10 years. When you co-sign for someone else, you are taking a risk that a creditor (who lends money as a business) is unwilling to take. There is always a reason they won't take that risk. Why should you?
:idea:
