Posted on: 25th Aug, 2009 11:14 am
I need to be a co-signer for one of my frineds for his/her student loan. He/She will be making the payments.
Do they check my credit report, when I co-sign?
Will this show up on my credit report?
Does this affect my DTI, if I want to apply for a Home loan?
Do they check my credit report, when I co-sign?
Will this show up on my credit report?
Does this affect my DTI, if I want to apply for a Home loan?
Hi student,
If you co-sign for a loan, the lender will look at your credit report. You should note that though your friend would be the primary borrower of the loan, you would be responsible to pay off the loan in case he/she defaults the loan payments. As far as I know, co-signing for a loan will be mentioned in your credit report.
If you co-sign for a loan, the lender will look at your credit report. You should note that though your friend would be the primary borrower of the loan, you would be responsible to pay off the loan in case he/she defaults the loan payments. As far as I know, co-signing for a loan will be mentioned in your credit report.
yes to all of your questions. i truly hope you know this person well and that your cosignature won't get you in trouble.
as for the "need" to cosign...let's be real...nobody "needs" to cosign for someone else. it's a major commitment and a grand gesture, but you aren't really doing it out of need. be careful.
as for the "need" to cosign...let's be real...nobody "needs" to cosign for someone else. it's a major commitment and a grand gesture, but you aren't really doing it out of need. be careful.
That was really good response
Lets think about it for a second, they need some one to co-sign becuse they are not able to meet the requirments.
And the instituation which is givign the loan wants a co-singer to ensure that some one else can pay if the primary person defaults. in that case they need to ensure that you are eligible. So they need to run a credit report to verify that. Also it will show up on your credit report because, you are equally liable as the other person
It will for sure affect yoru DTI. And how will you justfiy it to the bank which is going to give you home loan that the other person will not default
Lets think about it for a second, they need some one to co-sign becuse they are not able to meet the requirments.
And the instituation which is givign the loan wants a co-singer to ensure that some one else can pay if the primary person defaults. in that case they need to ensure that you are eligible. So they need to run a credit report to verify that. Also it will show up on your credit report because, you are equally liable as the other person
It will for sure affect yoru DTI. And how will you justfiy it to the bank which is going to give you home loan that the other person will not default
it's largely a matter of being aware of what you're getting into, and with whom. as for student loans, it is not unusual for a cosigner to be needed inasmuch as many students lack credit profiles to begin with. in fact, i cosigned for my sister-in-law for her final student loan. one most favorable thing, at least with sallie mae, is that they continue to send me updates periodically, so i can easily keep tabs on the progress of the repayment. i also have access online to check the loan, though i've never done that. fortunately, my sister-in-law is a very responsible, intelligent young woman and it's never happened that i've had to concern myself with her loan. i don't anticipate, frankly, ever being called upon to make payments, though i recognize fully my obligation should it be necessary.
to our poster: if you feel similarly toward your friend, then you can obviously feel free to be a cosigner. if you have any doubts whatsoever about how this will affect you, however, it would be wise to back up a step or two and give it a lot of thought.
cosigning is not something to be taken lightly.
to our poster: if you feel similarly toward your friend, then you can obviously feel free to be a cosigner. if you have any doubts whatsoever about how this will affect you, however, it would be wise to back up a step or two and give it a lot of thought.
cosigning is not something to be taken lightly.
George you last statement needs to be really in Bold.
People take it lightly and when they get in to trouble they just blame others
People take it lightly and when they get in to trouble they just blame others
i certainly can't disagree with either of those statements, sunny.
Student,
Somewhat interesting you are tossing around mortgage terms---DTI. Where did you pick that up?
The cosigned student loan payments will probably be included in your DTI for at least the first 12 months of on time payments. After that, you may be able to demonstarte that someone else is paying on time and the monthly payment would not be included in your DTI. If they pay late, it will be included in your DTI.
If they pay late, it will affect your credit score. If you do this, ask them to tell you if they are paying late because otherwise, by the time you find out, there will already be late payments and you will already be adversely affected.
In other words, it is nice to be helpful, but, be careful.
The good part is that it may all work out. The bad part is your credit could be hurt and you may have to make payments besides. More bad things than good things can happen.
Somewhat interesting you are tossing around mortgage terms---DTI. Where did you pick that up?
The cosigned student loan payments will probably be included in your DTI for at least the first 12 months of on time payments. After that, you may be able to demonstarte that someone else is paying on time and the monthly payment would not be included in your DTI. If they pay late, it will be included in your DTI.
If they pay late, it will affect your credit score. If you do this, ask them to tell you if they are paying late because otherwise, by the time you find out, there will already be late payments and you will already be adversely affected.
In other words, it is nice to be helpful, but, be careful.
The good part is that it may all work out. The bad part is your credit could be hurt and you may have to make payments besides. More bad things than good things can happen.
co-sighner means second debtors of any loan.if first could not be able to pay their debts ,you would be responsible or co debtor for the loan also you have not taken.in case of co sighner ,bank finds the capability of cosighners by current bank statement and after satisfiing their you would be co -sighner. after being co-signer ,if your friend done well repayment ,you will not be any trouble by recordly to do next loan proposals.so you must have to sure about your friends liability for repayment capacity and then cosighn or not.
Thats correct
In simple words you are laible to pay if your feind does nto pay
In simple words you are laible to pay if your feind does nto pay
let's be a bit more specific to co-signers: you are equally responsible. it doesn't matter if the person for whom you are signing pays or not - you are still 100% responsible for that debt. do not be deceived into thinking otherwise.
Thats for your addition george
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It happned again