Author Topic: Being a cosigner to a lease is it good or bad for my credit (Read 7725 times)

maylei · « **on:** March 07, 2017, 10:36:05 AM »

My family needs me to cosign a car lease but the person who is the original signer/ the one leasing the car has very bad credit like 620 will that affect my credit score??
And also is leasing a car usually good or bad credit in a reg situation?

chinagel · « **Reply #1 on:** March 07, 2017, 10:37:55 AM »

should be good for your credit as long as its getting paid

mmgfarb · « **Reply #2 on:** March 07, 2017, 10:41:34 AM »

Do you already have an installment loan on your CR like a mortgage, car payment, lease etc.?

maylei · « **Reply #3 on:** March 07, 2017, 10:51:43 AM »

Quote from: mmgfarb on March 07, 2017, 10:41:34 AM

Do you already have an installment loan on your CR like a mortgage, car payment, lease etc.?

no not yet

mmgfarb · « **Reply #4 on:** March 07, 2017, 11:07:41 AM »

Quote from: maylei on March 07, 2017, 10:51:43 AM

no not yet

Then it should definitely boost your credit.

ckmk47 · « **Reply #5 on:** March 07, 2017, 11:41:02 AM »

Quote from: chinagel on March 07, 2017, 10:37:55 AM

should be good for your credit as long as its getting paid

If the leaser has a bad credit score because he's bad at paying bills, have some system in place where you can be sure that he'll pay this one.
such as: Be able to sign into his payment account, he should make payments 15 days in advance, you won't buy him his esrog this year if he defaults...

maylei · « **Reply #6 on:** March 07, 2017, 11:46:31 AM »

Thank you so much everyone it really made a difference thank you

maylei · « **Reply #7 on:** March 22, 2017, 07:36:14 AM »

Am I able to pay off a car lease with a credit card?

bubbles · « **Reply #8 on:** March 22, 2017, 07:48:25 AM »

Who is the loan from?

maylei · « **Reply #9 on:** March 22, 2017, 08:13:23 AM »

Honda/ auto plaza mall

chulent613 · « **Reply #10 on:** March 22, 2017, 08:59:43 AM »

Quote from: maylei on March 22, 2017, 07:36:14 AM

Am I able to pay off a car lease with a credit card?

No

unclesam · « **Reply #11 on:** March 22, 2017, 02:48:18 PM »

Chrysler you can still pay with cc till the end of the month

newdealseeker · « **Reply #12 on:** March 23, 2017, 02:42:03 PM »

What about being a cosigner on a mortgage? How does that affect the credit?

ckmk47 · « **Reply #13 on:** March 24, 2017, 12:46:00 AM »

Quote from: newdealseeker on March 23, 2017, 02:42:03 PM

What about being a cosigner on a mortgage? How does that affect the credit?

It's good for your credit score to have a variety of types of credit- cc, bank loans. So having a mortgage or car loan is actually good. It's most important that the loan be repaid on time!

Square · « **Reply #14 on:** March 24, 2017, 01:38:21 PM »

Quote from: newdealseeker on March 23, 2017, 02:42:03 PM

What about being a cosigner on a mortgage? How does that affect the credit?

Your Debit to income ratio will take a big hit if you plan to take a mortgage before 12 months.

yelped · « **Reply #15 on:** March 24, 2017, 03:36:18 PM »

Quote from: Square on March 24, 2017, 01:38:21 PM

Your Debit to income ratio will take a big hit if you plan to take a mortgage before 12 months.

To put it more clearly, they don't count the mortgage as debt if you show them that the other person paid the mortgage from his own account for the past 12 months.

Dovdovmoneytree · « **Reply #16 on:** November 20, 2019, 03:34:49 PM »

Close relative is asking for my wife to cosign on a lease. I'm not concerned about payment. I'm concerned this will hurt her credit. Her score is 745+ now. All she has on her name are several CC accounts (2-3 her own and several of mine she's authorized user). Mortgage paid off and renting now. I have a lease on MY name. I'm just concerned that our debt to income ratio shouldn't be too high. We pay all CC's in full monthly. Thanks!

Joel · « **Reply #17 on:** November 20, 2019, 07:50:48 PM »

Quote from: Dovdovmoneytree on November 20, 2019, 03:34:49 PM

Close relative is asking for my wife to cosign on a lease. I'm not concerned about payment. I'm concerned this will hurt her credit. Her score is 745+ now. All she has on her name are several CC accounts (2-3 her own and several of mine she's authorized user). Mortgage paid off and renting now. I have a lease on MY name. I'm just concerned that our debt to income ratio shouldn't be too high. We pay all CC's in full monthly. Thanks!

It will temporarily lower the credit score due to having a loan with outstanding balance.
The only risk is if he misses payment then your wife's score will be damaged.

Dovdovmoneytree · « **Reply #18 on:** November 20, 2019, 11:14:14 PM »

Quote from: Joel2 on November 20, 2019, 07:50:48 PM

It will temporarily lower the credit score due to having a loan with outstanding balance.
The only risk is if he misses payment then your wife's score will be damaged.

There will be a balance for 36 months, why would it only lower her score temporarily? Is there also a concern of credit being to high as it relates to income? I will likely need to lease/finance my own vehicle in next year. Combined we have some 60-75k >>available<< credit on CC's (pay in full monthly). Show income of approx 115k.

Joel · « **Reply #19 on:** November 21, 2019, 12:09:10 AM »

Quote from: Dovdovmoneytree on November 20, 2019, 11:14:14 PM

There will be a balance for 36 months, why would it only lower her score temporarily? Is there also a concern of credit being to high as it relates to income? I will likely need to lease/finance my own vehicle in next year. Combined we have some 60-75k >>available<< credit on CC's (pay in full monthly). Show income of approx 115k.

Temporarily I mean as long the lease is in effect.
You have to see how much available credit your wife has. And how much the lease/loan will be and if it's more then 10-30% it will definitely affect the score again only temporarily until the lease is paid up.
If your going to take out a lease yourself as well, take that into consideration that you might be paying more for the lease since the score might be lower then usual because of the lease that's already on the credit report affecting the utilization.