My credit is pretty good, a little over 760 overall last I checked. I plan on co-signing a $1,300 loan for my daughter-in-law for an engagement ring. Her and her fiance are very good with their finances, so I am not worried about them missing a payment. I am doing this to help build her credit, and because it isn’t a very large loan I am not overly concerned.
However I am curious, will being a co-signer also help elevate my credit as well if she makes timely payments? Or will only her credit be positively effected? Thanks for the answers.
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As long as the store reports to the credit bureaus both the primary signer and the co-signers credit will be effected the exact same way either good or bad depending on how the account is paid.
Source(s): Finance Manager for over 11-years.
From: MyFico/ education
Scores above 740 to 760 are considered the among the best.
Any higher than this are completely unecessary, since a person will already get the best rates.
A new loan will actually do two things:
It will ding your credit for the first 6 months (new credit)
It will also increase your debt-to-income ratio if you need a loan in the future.
A number not used by the fico, but used by lenders.
Note: If any of them lose their job, and they make one late payment, it will hurt your credit equally. When you co-sign you must be willing to pay the ring out of your own pocket,
Also note: If they need a loan for a ring, that means that they will need loans for many other things – brace yourself to be the “sugar daddy”
If they pay on time, it can help. If they have late pays or default, your credit rating will be trashed.
No, since you are vouching for someone who doesn’t have credit it might go down until everything she has is paid off. And her credit is only affected if she doesn’t pay the monthly fees