Should I cosign a loan for my Girlfriend?
Should I cosign for a Student loan, Car loan or Installment loan for a Girlfriend or Boyfriend?
Jean had a question about a car loan that he was the co-signer on with his girlfriend, they later broke up and now she’s behind on the payments. Jean wanted to know what his current options are.
This is one big reason why you should never co-signed for anyone. How the original signer makes the payments on that loan is going to be fully reflected on the co-signers credit report. If somebody asks you to cosign a loan with them, I would really not recommend it.
Jean’s situation (where he co-signed for his ex-girlfriend) if the primary borrower is now starting to pay late. Those late payments are affecting both the signer and co-signer’s credit score in a major way. Unfortunately, because he co-signed, Jean’s also fully responsible for the payments, so if he is concerned about credit score. What can he do?
- Pay for the car, not something you really want to do when you’re no longer in a relationship with that person. Jean should contact his ex-girlfriend say look “you’re not making the payments give me the car and I will start making the payments to save both of our credit scores”
- Have her sell the car and then Jean would need to make sure his ex paid the difference if she can’t or will not, then Jean will have to make sure the remaining balance is paid in full.
Those are the two ways to get out of this type of situation. Neither is particularly good, but that’s it. Once you sign as a cosigner it is just like the loan is for you, not for someone else. Cosigning means that you’re going to assume the responsibility of paying the loan if the original signer can’t actually make the payments.
I hope that helps, don’t cosign for anybody period. If someone needs to borrow money for a car, then they should not be getting that car. They should be paying cash, nobody needs to borrow money to get a car, just buy a clunker.
If you’re looking for other ways to improve your credit score please go to GetLoanReady.com you can get free videos and worksheets to increase your credit score from a more holistic perspective. Never Pay Collections
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