Re: Question on co-signing a CC

Posted by Drew (24.59.27.46) on October 03, 2003 at 22:03:34:

In Reply to: Question on co-signing a CC posted by Fireye on October 03, 2003 at 17:59:33:

Never cosign for someone unless you want to get screwed. If someone needs a cosigner, they usually have a bad credit record or no credit record. In the majority of cases, they often default and the cosigner in about 70% of the time ends up picking up the bill.

A credit card is an open ended account so if you sign for that person, that persons account history will follow you around. If they are late on a payment, you are late. If they default, you default because the credit card companies will report the payment history on both the primary applicant and the cosigners credit reports. If the primary person is irresponsible, cosigning will damage your credit in more ways than you can possibly know.

The best way to build up credit is to first get a low limit secured credit card from your local bank that you do business with and keep the money in there. Keep the balance low and never charge more than what you can pay back in a month.

NEVER, NEVER COSIGN FOR SOMEONE. IT WILL LEAD YOU STRAIGHT TO CREDIT HELL. FROM PERSONAL EXPERIENCE.

Drew

Follow Ups:

Post a Followup