Car Loans and Credit Scores Ect.?
I have no credit and get paid under the table. My brother has offered to co-sign on a car with me however he has recently bought a new house (already closed on it). My question is, how much will him co-signing a car loan with me, affect his own credit score.
- Anonymous1 decade agoFavorite Answer
Your brother is a FOOL because this is a great way to split the family assunder. One should never co-sign a loan for anyone much less a relative. You will be ruining his income to debt ration if he should need credit.
Take some of that "under the table money" and save it since the rest of us are paying the taxes for you, then you should be able to save enough to buy it yourself without sacrificing your family. Now that you don't like that just look around concerning cosignor around here.
- Sharon TLv 71 decade ago
It isn't just credit score that matters here. If he co-signs for you he is totally liable for that amount so it limits his ability to take out a loan or credit card.
Just because you get paid under the table doesn't mean you have to stay clandestine. Just report it on Sch C on Form 1040 and pay your taxes. Then you will be able to document that income for loan purposes.
- Dan BLv 71 decade ago
It will be exactly like him taking out the loan. It will show up on both credit profiles (yours and his) until it is paid. If you default, it will show up on both credit profiles for 7 years even if paid off.
It's not really likely that you'd get the loan anyways. You have no provable income. It doesn't matter that you have a co-signer. You are the primary borrower. You have to prove you can qualify and make the payments.
- 1 decade ago
It depends on how many lenders the dealership will foward your information to. For example, if the dealership sends your application to 5 banks, your brother's credit will lose 5 points (1 per each inquiry.)