jay asked:
I am trying to buy a car and build credit at the same time. I have almost a years worth of credit history specifically credit cards and charge cards. I have good scores, but limited history. I have been turned down applying for the loan by myself. I would like to cosign with a parent. Two questions. First, I was told that even if my parents scores are not the best, or even good, they have history. I do not have much history, but have good scores. And so, I was told that this would essentially be a match and I’d have a good chance of getting the loan. The second question is, if I were to get a loan with a co-signer in my parents, that it would primarily be in their name, building or hurting their credit? If they co-sign with me, and I make the payments, it will or will not affect my credit? I have a specific car in mind and the pricing online is attractive opposed to working with dealerships that have less then desirable cars that will work with no/bad credit for high interest rates.TIA
Heidi
I am trying to buy a car and build credit at the same time. I have almost a years worth of credit history specifically credit cards and charge cards. I have good scores, but limited history. I have been turned down applying for the loan by myself. I would like to cosign with a parent. Two questions. First, I was told that even if my parents scores are not the best, or even good, they have history. I do not have much history, but have good scores. And so, I was told that this would essentially be a match and I’d have a good chance of getting the loan. The second question is, if I were to get a loan with a co-signer in my parents, that it would primarily be in their name, building or hurting their credit? If they co-sign with me, and I make the payments, it will or will not affect my credit? I have a specific car in mind and the pricing online is attractive opposed to working with dealerships that have less then desirable cars that will work with no/bad credit for high interest rates.TIA
Heidi
Kristin
If you have no credit then you will need a cosigner for a purchase as large as a car. Having your parents cosign does not automatically get you a loan if they don’t have atleast fair credit. Your best bet if your young with no credit is to deal with your local credit union. They will give you the best rates.. Good Luck
Comment by Burkettmom3 — July 10, 2010 @ 1:32 pm
David
As long as you pay on time every time, both parties win.
The debt will report on yours and your parents credit reports.
So, as you pay on it month by month, the treasured green squares of positive payments start showing up on your reports!
It will increase your score and theirs!
Comment by latebreakfast — July 13, 2010 @ 6:27 pm
Milton
Yes, Also get a visa card on your own then spend some bills on it and every month pay that on time. That will help alot too.
Comment by Jaime Rose — July 15, 2010 @ 6:13 pm
Jeffery
getting a payment under you and a co-signer it will help you build credit it does not matter what it is, If you are looking for a auto loan and want to get approved, check out under auto loans this guys will get you approve no matter what.
Comment by Family1 — July 16, 2010 @ 12:23 am