Lily ([info]thelilyqueen) wrote in [info]booju_newju,
@ 2009-07-09 17:07:00
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Would you ever co-sign a loan for your child?  Would it depend on what the loan was for, or the amount?  Other factors to do with the kid him/herself?

ETA: For the purposes of this discussion, let's assume the loans aren't for education. They're for a car, a house, starting a business, etc.

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[info]chrispina
2009-07-10 12:09 am UTC (link)
it would depend on lots of factors, but i would consider it. since from what i understand, having a cosigned loan doesn't help build credit, i would be more likely to buy whatever it is in my own name and then have them pay me for it. that way i can take it away if they don't pay for it and their credit won't be ruined.

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[info]stateofwhat
2009-07-10 04:19 am UTC (link)
It does help build credit. *had mom cosign car*

If it can ruin your credit, it can build it up.

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[info]ayanamisama
2009-07-10 12:10 am UTC (link)
Absolutely.

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[info]thelilyqueen
2009-07-10 12:11 am UTC (link)
No. Maybe there's some totally wacky unforeseeable circumstance where I would feel it was called for, but lenders ask for a cosigner for a reason - they don't feel confident the prospective borrower will pay the debt.

At any rate, I wouldn't do it unless I was fine with the idea of taking on the debt myself, since that is how it could wind up.

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[info]creamy_martian
2009-07-10 12:25 am UTC (link)
Lenders ask for a cosigner for most lenders under a certain age. 18 is the minimum.

(Reply to this) (Parent)(Thread)
(no subject) - [info]thelilyqueen, 2009-07-10 12:34 am UTC
(no subject) - [info]malizioso_shine, 2009-07-10 12:35 am UTC
(no subject) - [info]thelilyqueen, 2009-07-10 12:36 am UTC
(no subject) - [info]radrose, 2009-07-10 12:54 am UTC
(no subject) - [info]thelilyqueen, 2009-07-10 12:57 am UTC
(no subject) - [info]lsmsrbls, 2009-07-10 03:44 am UTC
(no subject) - [info]stateofwhat, 2009-07-10 04:21 am UTC
(no subject) - [info]lsmsrbls, 2009-07-10 04:43 am UTC
(no subject) - [info]oh_annalouise, 2009-07-10 12:47 am UTC
(no subject) - [info]thelilyqueen, 2009-07-10 12:55 am UTC
(no subject) - [info]oh_annalouise, 2009-07-10 02:23 am UTC

[info]adamantplatypus
2009-07-10 12:13 am UTC (link)
Never never never. All it takes is for one mistake and/or accident to screw you over.

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[info]jessy1019
2009-07-10 12:15 am UTC (link)
Sure, if I was certain they could pay the debt or had the means to pay it if they didn't.

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[info]shadowdrop
2009-07-10 12:16 am UTC (link)
If I could afford to hold it in in case shit happened, sure.

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[info]milk_and_glass
2009-07-10 12:16 am UTC (link)
Of course I would. My parents did for me - they helped me get my current apartment when my credit was so bad from being unemployed for six months and they helped me get a student loan. It really helped me, so yes, I'd do the same for my kids.

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[info]felizlahdedah
2009-07-10 12:18 am UTC (link)
Yep, I've done it. For school.

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[info]hexkitten
2009-07-10 12:20 am UTC (link)
It depends on whether my favorite child asked. I'm not cosigning for the other one.

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[info]merlyn4401
2009-07-10 12:20 am UTC (link)
Under certain circumstances, yes. Since credit tightened up, it's become much more difficult to get a loan.

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[info]idislikepenguin
2009-07-10 12:24 am UTC (link)
Yes, if I believed they could pay it. My mom signed for me.

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[info]idislikepenguin
2009-07-10 12:42 am UTC (link)
The reason I needed a cosigner was not because my credit was bad, it was because I just didn't have any credit at all. Until I bought my trailer, everything I had ever bought I had paid for in full. I didn't have any credit cards and it was my first loan. There was never any doubt I would be able to make the payments.

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[info]andalusi
2009-07-10 12:25 am UTC (link)
Probably not. I would lend or give the money myself (if practical and I thought it was important enough, anyway). Or take a page from [info]chrispina's book and buy the item myself, then let the adult child pay for it and take it back if he or she didn't.

I don't recall if you have to co-sign for PLUS loans or if it's just the parent who takes them out. If the former, though, that I would co-sign for.

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[info]audacian
2009-07-10 12:28 am UTC (link)
For undergraduate, I think its just a parent loan. Graduate PLUS doesn't require cosigners but the fixed rate sucks.

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[info]failstoexist
2009-07-10 12:28 am UTC (link)
Yes, definitely, if they were mostly financially responsible people who just needed a little help to get started. not if they were in a very unstable situation or were unable to make the payments. Not if they had a spotty financial past and were likely to wreck my credit.

I might consider paying for something they needed and having them pay me back instead...then I own whatever it is and I control it. But mostly, I hope that my kids will be responsible and will be able to deal with financial matters on their own once they're old enough for major purchases.

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[info]lsmsrbls
2009-07-10 03:47 am UTC (link)
I agree.

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[info]scorpi084
2009-07-10 12:33 am UTC (link)
It would depend on the child (are they dependable, can I trust that they will do everything possible to make sure the loan is paid back so I'm not on the hook for it?), it would depend on the amount (if my child couldn't make the payments, is it something I could fit into my budget?), it would depend on what it's for (it would need to be necessary, or to help them build credit), and on the financial situation I was in.

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[info]malizioso_shine
2009-07-10 12:38 am UTC (link)
I would cosign a loan for schooling/college, for sure. If my kid had said anything about just going to drink/party it up and flunk out, I'd reconsider, but if my kids were decent humans with a plan, I'd not even bat an eye.

If it were for something else like a car or a house or something else, it would take some serious consideration. I would urge them to buy something cheaper that they could afford on their own - or get a loan for on their own. If they're too young to get credit for something like a car, they damn well better be driving a junker that they bought with their own CASH.

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[info]sheisred
2009-07-10 12:41 am UTC (link)
Probably. Mostly it would depend on two things: is my child responsible and can my child afford this item? Also, is it a reasonable purchase? (I'd be far more willing to sign for a reliable family or commuter vehicle than I would some ridiculous sports car.)

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[info]rebbyribs
2009-07-10 12:43 am UTC (link)
Absolutely, if I was confident they could pay it back, or if it was something I thought was so important for them to have that I would've been willing to just get it for them as a gift.

It's often hard to get a loan as a young adult when you don't have an established credit history. For my kid, I'd have a better idea of whether they were likely to pay back the loan than the bank would, so it would make sense for me to co-sign for them.

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[info]oh_annalouise
2009-07-10 12:45 am UTC (link)
last time we had this discussion I believe it created enormous drama.

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[info]mellybrelly
2009-07-10 01:01 am UTC (link)
Yes, my parents did it for me.

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[info]cindyanne1
2009-07-10 01:17 am UTC (link)
Maybe. It would depend on how financially responsible I felt the child was. My parents cosigned for my brother a car that he let go back to the bank (FTR, my parents should NOT have cosigned for that loan, because they couldn't afford to pay it themselves. First rule of thumb... if YOU can't afford to pay for it, DON'T COSIGN FOR IT) *Ahem*/end soapbox moment.

Anyway, they were pretty screwed by that little fiasco, because it not only ruined my brother's credit, it seriously impacted theirs also. But it's not as though they didn't know how my brother was with money. If he had a nickel, he'd spend ten cents. Money always burned a hole in his pocket and it still does. The man is 42 years old now and has ZERO savings.

A kid like me, however, *cough* I'd have no problems cosigning for. But you know, my husband and I never needed a cosigner for anything, so I dunno...

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[info]compulsivelyme
2009-07-10 01:36 am UTC (link)
No.

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[info]sputnik2009
2009-07-10 01:52 am UTC (link)
I would never, ever cosign on a credit card or a personal loan.

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[info]velvetpage
2009-07-10 01:59 am UTC (link)
If they've always been trustworthy before and I have no reason to suspect they'll default - that is, if the co-signer is because they have no credit history rather than because they have bad credit - I will co-sign without a second thought for anything that will help them get a job or be independent. I wouldn't co-sign for a mortgage because owning a home is not necessary for independence, so they can reach that milestone on their own credit.

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[info]babity
2009-07-10 02:02 am UTC (link)
If I really 100% believed that they would pay off the loan and/or was 100% fine with having to pay for it myself if they didn't. Then I would sign for it.

There would be a lot of factors though, probably some I can't even think of.

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[info]ex_brumeux520
2009-07-10 02:27 am UTC (link)
My friend's dad had her get student loans (without co-signing) but offered to pay them back if/when she graduated college. No risk to him, unless she uses the money well, in which case he didn't mind paying for it anyway.

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