Can cosigning for friends college loan impact personal credit rating or score?

I am trying to buy a house however my friend needs me to sponsor her college loan. If I signup to be her cosigner, would that directly or indirectly impact my creadit rating or score? I would like to help my friends but afraid of not qualifing for home loan or better interest rate

Can cosigning for friends college loan impact personal credit rating or score?
Hello --- don't help your friends. They cannot get a loan cause they do not pay their creditors. If you CO on a loan it will definately affect your ability to get a home loan. Earnings to debt ratio ... If she defaults on the student loan then you have to pay it off--Thats right you-- I get the feeling that you are being set up to get stuck for a student loan by a pretty lady. Don't be so gullable... ABSOLUTELY DO NOT SIGN ANY PAPER TO COSIGN ON A STUDENT LOAN --- CAR LOAN --OR ANY KIND OF LOAN.


YOU WILL PAY WHEN THE PAYMENTS ARE MISSED---IT IS THE LAW. Techanically it is your loan and you gave her the money.


You loan her the money on an installment agreement and when she does not pay --- go to small claim court and recover some of this money.
Reply:YES! It will affect your credit and could even prevent you from buying this home you are trying to get. ANYTHING you do with your credit right now is going to affect your owning this home.
Reply:NEVER, NEVER, NEVER co-sign a loan with someone you are not legally married to. It will come back to haunt you. Don't care how good a friend, things change.





Not only will it instantly affect your credit score by giving you more debt, but if they pay late, you get the ding. If they stop paying, you either pay or get dragged to court.
Reply:By co-signing a loan you are saying that you will pay it if it defaults. Some lending institutions report co-signers and some don't.
Reply:YES....don't do it no matter how much you care for her!! Never, never, never co-sign a loan for anyone!! It will be just like it's your loan, no matter if her name is on it or not. You won't be able to buy your home. You will have much more debt and no one will wnt to finance you. And if she for some reason defaults on her loan YOU WILL PAY!!! They will come after you for every cent. My credit is trash right now because I co-signed a loan for my son (argh) and he lost his job and couldn't pay. Neither could I. So now I rely on my husband's credit. It has been a nightmare.
Reply:If she doesn't repay the loan then yes it will impact you because you will be repaying her loan and taking the bad credit for the loan. Make sure she is someone you really trust.
Reply:There are hundreds if not thousands of websites on the internet enumerating the ways to apply and receive home loan when you are plagued with bad credit issues. These sites help consumers with bad credit scores to increase the viability of their existing credit scores and set up loans regardless of their credit history.Companies that specialize in bad credit home loans; usually offer a wide range of options for consumers with bad credit%26lt;!--These options include Bad Credit Home Loans, Home Equity and Line of Credit (HELOC) Loans and different options for Mortgage Refinancing, making it possible for those with bad credit to realize the dream of owning their own home.You can find more information on Home Loans here,





http://badcredits.awardspace.com/homeloa...





They also offer a debt consolidation offer which helps the home owner organize a comprehensive program for controlling their spending. Many consumers with bad credit are grateful for the opportunity to receive a second chance, sort to speak--%26gt;Bad credit hasn't stopped them from purchasing a home. There are several programs available for people with bad credit that helps to restore their credit status and to live debt free lives.
Reply:Your credit will be impacted because you will have more debt. You won't qualify for as much as a home loan. If you don't make the payments on time on the student loan then your credit rating will be trashed. Taking out a loan with a cosigner makes both signers exactly equal to the lender they will get the money from whoever they can. Sometimes the more credit worthy won't know they have a problem until it is too late.
Reply:Listen to just about every other answer and DON'T do it. No matter how good of a friend she is now. Yes it will be tough but if she is really a good friend she will understand. If you co-sign for the loan you are making a promise to the bank that you will pay it back if she fails to. Regardless of how it effects your score now, which it will, it could come back to haunt you years down the road.





If she fails to make the payments they will come after you, and her negative history becomes your negative history. The


other thing is unlike other debt a Student Loan debt does not go away and can not be discharged in bankruptcies.

myspaces.com