Posted on: 08th Nov, 2012 11:09 pm
I have a problem with my credit score and I'm seeking for help. I cosigned for my friend for his apartment. He was making his payments until about half a year ago he had stopped making them he said he was struggling financially. He promised that would work out with the apartment manager and pays off the remaining balance and not let the owed balance go to collection. Well he lied to me. I recently pulled out my credit report and there it was that balance of 4035 put into collections with my name on it. My score was a 720 it has gone down to a 650. What can I do to remove this from my credit report? Please help anyone.
hi molpro,
you're the co-signer of the loan. in such a situation, you will be liable for the payments if your friend does not make the payments on time. late payments or non-payment of the debt will have a negative impact on your credit scores. you will have to ask your friend to refinance the loan in his name in order to remove you from the loan docs.
thanks
you're the co-signer of the loan. in such a situation, you will be liable for the payments if your friend does not make the payments on time. late payments or non-payment of the debt will have a negative impact on your credit scores. you will have to ask your friend to refinance the loan in his name in order to remove you from the loan docs.
thanks
Welcome Molpro,
I agree with James. As you're the cosigner of the loan, the lender can come after you for the loan amount and can even update the late payments on your credit report. It is absolutely legal.
You may ask your friend to refinance but if the property is underwater, then it won't be possible for him to refinance the loan. In such a situation, selling off the home will be a better option.
I agree with James. As you're the cosigner of the loan, the lender can come after you for the loan amount and can even update the late payments on your credit report. It is absolutely legal.
You may ask your friend to refinance but if the property is underwater, then it won't be possible for him to refinance the loan. In such a situation, selling off the home will be a better option.