If someone cosigns on an auto loan for someone with no credit is there any draw back for them?

Say the vehicle is $75,000.

If the person upheld their part of the deal (making full payments on time) would there be any drawbacks for the cosigner? For Example: I was wondering if the cosigner had a business opportunity and went to get financing would it look bad for him that he is cosigner for someone with no credit?

If someone cosigns on an auto loan for someone with no credit is there any draw back for them?

The credit history of the person who needs the co-signer doesn't matter in any decisions about the person who co-signs.

Assuming that all payments will be made on time, the credit history of the co-signer will only be enhanced.

However, the loan will show up on the co-signer's credit report, and any required payments will be counted as part of the debt to income ratio by a potential lender. Especially if the payments are high, as they would be on a $75k car loan, this would be a large risk to the co-signer if there is any possibility that the co-signer will need to borrow money during the term of the loan.

Because the co-signer is legally responsible for the loan, lenders will not accept the explanation %26quot;But, I'm just a co-signer - my buddy makes all the payments.%26quot;

If someone cosigns on an auto loan for someone with no credit is there any draw back for them?

On your net worth, they'd subtract the amount owed on the loan from your credit score.

If someone cosigns on an auto loan for someone with no credit is there any draw back for them?

As long as your friend's payment are on time there shouldn't be any problem as far as I know.

If someone cosigns on an auto loan for someone with no credit is there any draw back for them?

Holy c.rap....... I can't get past a vehicle that cost $75,000 or that ANY BANK would even allow someone with absolute any credit to even ATTEMPT to get a loan on a HOUSE, let alone a car for that price.

If someone cosigns on an auto loan for someone with no credit is there any draw back for them?

if the person who needed a co-signer pays on time and is not in default, the co-signer is fine.

The only reason for a co-signer is if the signer is delinquent, the co-signer is responsible for payments.

P.S.

$75K for a car?!!!! thats no car...thats a Ferrari!

If someone cosigns on an auto loan for someone with no credit is there any draw back for them?

It WILL show on your credit score if it's reported, which most loans are, and you're trusting someone else to keep it going. What if they are in a accident and can't work or they turn up missing???A friend of mine lost her butt doing this. The relative she cosigned for committed a crime, using the car she cosigned the loan for. He went to jail, they came after her, tried to ruin her credit and the whole time, the car was impounded for evidence by the police dept. They kept it for over two years. They tore the car apart and she still had to pay the loan. Ruined a nice Camaro and almost ruined her credit.

If someone cosigns on an auto loan for someone with no credit is there any draw back for them?

Yes, there are drawbacks. It could affect the co-signer's credit score because he now has $75k more in debt than before. Also, if the person with no credit decides not to make payments (for whatever reason) the co-signer is responsible or it will affect his credit. The co-signer should probably ask the person without credit to be a very short term loan, which would mean higher payments.

If there is a business opportunity, the financiers would take into account the $75k loan and count that as part of the co-signer's debt.

It's a definite risk. Sometimes this kind of thing works out but usually it doesn't. Good luck.