Thread: Does co-signing effect credit score

It would definitely affect your scores, for the good or bad depends on if the payments are made on time or not

thank you Magic69 for the reply

So you mean to say that if payments are made on time that would definitely increase my credit score. Because i will be making that payments, the only thing that i was not sure was whether it would increase my score the same way as it would increase for the primary signer.

Yes, it will help your score or hurt it depending on payments being made on time. As a co-signer if the primary does not pay, your phone will be ringing for sure.

Deversity of loans do help your credit score increase. Example: Meaning credit cards, store cards, car loans, home loans and utility bills even. This set up will grow a credit score faster then having only 2-3 credit cards.

I hope this helps,

Scott

Yes Kumar, Sdfinch is right - it goes both ways. If paid on time, it will help your scores, but if not it will hurt them. Co-signing is agreeing to be just as responsible for the debt as the other signor. Keep that in mind for sure.

The prefix "co-" means 'with'. Any two or more people, married or not, who sign on a consumer loan contract are affected in exactly the same way, including point scores.

"Point scores" are affected, but due to other obligations and payment records, may be affected with different points.

That is to say, one party may have a 15 year credit history with no lates, and owe a total of $5000 against $20,000 in total lines of credit. The 2nd person may have a 5 year credit with some delinquency and owe $12000 against a total of $15000 in lines of credit.

Thus a new car loan may cause an initial drop in points of 23 while the same (amount, terms, etc.) carloan will cause a drop of 45 points to person # 2.

Hope this helps.

Note: All installment loan and mortgages cause a 'drop' in points, until the balance drops. Points do not rise in the begining, they fall with installment obligations.

Joe70