Author Topic: Co Signing a car lease  (Read 721 times)

Offline Mutty

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Co Signing a car lease
« on: March 06, 2018, 11:15:29 AM »
Does anyone have any information on the following? A family member would like me to cosign on a lease for a car. I'm not discussing whether I'm going to have a problem with their paying the lease. My question is, how does it affect my credit report? I've done this before and always got a message that my credit report has been updated when I cosigned. Any info on that? Thak you.
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Offline AJK

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Re: Co Signing a car lease
« Reply #1 on: March 06, 2018, 11:55:26 AM »
Assuming there is no question of repayment, the account will go on your credit report, and as a general matter will improve the report and score.
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Offline Mutty

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Re: Co Signing a car lease
« Reply #2 on: March 06, 2018, 12:05:34 PM »
Assuming there is no question of repayment, the account will go on your credit report, and as a general matter will improve the report and score.
Did you say improve? Doesn't it go against my debt vs income?
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Offline Myccrabbi

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Re: Co Signing a car lease
« Reply #3 on: March 06, 2018, 12:11:48 PM »
Yes it will go on your report, and any missed/late payments will have the same effect as if it's your credit card bill.

Just make sure that you trust the family member to follow thru and be fully responsible, because it can have a full effect since you are the Cosigner.

I have personally done it twice and probably because my first lease had to be cosigned by a relative so I felt I need to pay back.
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Offline Mutty

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Re: Co Signing a car lease
« Reply #4 on: March 06, 2018, 12:16:20 PM »
Yes it will go on your report, and any missed/late payments will have the same effect as if it's your credit card bill.

Just make sure that you trust the family member to follow thru and be fully responsible, because it can have a full effect since you are the Cosigner.

I have personally done it twice and probably because my first lease had to be cosigned by a relative so I felt I need to pay back.
Thanks
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Offline AJK

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Re: Co Signing a car lease
« Reply #5 on: March 06, 2018, 12:45:07 PM »
Did you say improve? Doesn't it go against my debt vs income?

Yes will improve in long run.
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Offline PillanSmye

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Re: Co Signing a car lease
« Reply #6 on: March 06, 2018, 01:09:57 PM »
Assuming there is no question of repayment, the account will go on your credit report, and as a general matter will improve the report and score.

Will improve your score when the account gets paid below 20%, and then below 9%.

Until then, it's an INQ, new account and increased debt load.  Someone with a thick file who doesn't report balances this effect will be minimal.  Someone with a thin file and/or who consistently reports balances, the effects will be heightened.

Offline Yehuda25

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Re: Co Signing a car lease
« Reply #7 on: March 06, 2018, 01:52:26 PM »
everything said so far here correct, though one thing missed -  it will improve you score as a different type of credit (assuming you don't already have a mortgage). 
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Re: Co Signing a car lease
« Reply #8 on: March 06, 2018, 01:55:22 PM »
everything said so far here correct, though one thing missed -  it will improve you score as a different type of credit (assuming you don't already have a mortgage).
+1
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Offline ChaimMoskowitz

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Re: Co Signing a car lease
« Reply #9 on: March 06, 2018, 01:59:41 PM »
Will improve your score when the account gets paid below 20%, and then below 9%.

Until then, it's an INQ, new account and increased debt load.  Someone with a thick file who doesn't report balances this effect will be minimal.  Someone with a thin file and/or who consistently reports balances, the effects will be heightened.
How important is the mix?
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Online davidrotts63

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Re: Co Signing a car lease
« Reply #10 on: March 06, 2018, 02:04:37 PM »
Will improve your score when the account gets paid below 20%, and then below 9%.

Until then, it's an INQ, new account and increased debt load.  Someone with a thick file who doesn't report balances this effect will be minimal.  Someone with a thin file and/or who consistently reports balances, the effects will be heightened.
Any idea for me? I feel need a installment loan for my credit.
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How important is the mix?
+1
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Offline aygart

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Re: Co Signing a car lease
« Reply #11 on: March 06, 2018, 02:06:53 PM »
Make sure that you do your due diligence about why this family member needs a co signer. If they do not pay on time that will hurt your credit more than anything else discussed.
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Offline Yehuda25

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Re: Co Signing a car lease
« Reply #12 on: March 06, 2018, 02:09:29 PM »
How important is the mix?
adds points...
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Offline Tuna Baygel

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Co Signing a car lease
« Reply #13 on: March 06, 2018, 07:06:54 PM »
Did you say improve? Doesn't it go against my debt vs income?
If you are worried about a mortgage some lenders won't count it as debt if you can prove that the monthly payment is someone else's responsibility and they have been consistent

Offline Mutty

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Re: Co Signing a car lease
« Reply #14 on: March 08, 2018, 03:10:49 PM »
If you are worried about a mortgage some lenders won't count it as debt if you can prove that the monthly payment is someone else's responsibility and they have been consistent
I see. That's exactly the situation except I currently have no need for a mortgage, but it may happen at any time. That's why I was a little nervous. But proving someone else pays is no problem. Thanks.
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