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     | Sunday, December 12, 1999 - 09:07 pm  My wife is leasing a new car. The bank required a 700+ on the Beacon to quality for a great rate. She scored over 750, but the lender was bothered that she did not have any previous car loan. Her last auto loan was a 60 month the started in 1988. I thought it would still we on the files, but no. Anyway, they asked for me to co-sign. I have one year under a lease, and my Beacon is 680. My question is...Does co-signing have any negatives? Thanks Jim
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| | Monday, December 13, 1999 - 03:56 am Negative: If she defaults or the lease is terminated, you are liable for balance if she refuses to pay. If she has late or missed payments, they not only go on her credit bureau records, but yours as well. If you are listed on the title as well, you can be sued as co-owner in the event of accident or legal situation. Positive: If she makes all the payments on time, it's on your credit bureau reports as a GOOD trade line. Does she have other credit history? Has she been at her job and residence for atleast a year? I'll assume she's at least 29 years old, being that she obtained an auto loan in 1988 and one needs to be 18 to sign the legal documents, so age should not be an issue. I can't believe they want a co-signer when she's got a 750 and (assuming)other established credit. Who is the lease though?
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| | Monday, December 13, 1999 - 04:37 am She has been @ her current job for 11 months, but in the same field for 20 years. She is 37. She bought a house in Santa Monica (loan amount without down payment was 328,500.00) sold and paid off the loan (280K) in 07/99. The loan is through Firstar (.com). My guess is very conservative. Just look at there rates. Equity lines for 1/2 point below prime, etc. I have known my wife for over 17 yrs. I believe there is little chance for a default. The car is a boxster S. I am also looking forward to the car. She CAN get the loan on her own, just not at the great rate (money factor 0.00289 - 6.94%) Comments? Jim
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| | Monday, December 13, 1999 - 05:09 am Because of the long history between you two, I would say go with the co-signing. You'll love the Boxster ... :) The only other negative that I didn't mention was that, if you were going to try to obtain financing or a loan ON YOUR OWN, that co-signed debt would be included in your debt to income ratio, even though it was her loan and you were only a co-signer.
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| | Friday, December 17, 1999 - 07:39 pm RCB: Thanks for all the info. I even ended up getting proof that my wife had the car loan, and with a perfect payment history, and the lender still wanted me to co-sign. FYI her beacon was 756 and mine was 686. Go figure. I signed the lease papers today for the boxster S. Yahoo and Happy Holidays to all. JH
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| | Friday, December 17, 1999 - 08:01 pm Great. Glad I could help. Be sure to check out the newest consumer credit forums on the web: http://24.30.61.134/pcic :)
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