Author Topic: Any financial gurus here?  (Read 3419 times)

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Offline Flame

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Any financial gurus here?
« on: January 03, 2008, 04:53:44 PM »
if you co-sign a loan, how does that show on your credit report?

My poor niece is the victim of  being my sister's child...she needs someone to co-sign a student loan so she can go to school next sememster, but her parents are such shmucks, they are denied.

My worry, is if I co-sign for her, does it show up on my credit as a debt to income thingy?  Would it bite me in the butt in 4 years should I need to help out my daughter with school?

Any ideas or info? 

If it was anyone else but this kid, I wouldn't even consider it, but man, I love this kid to death, and she gets shafted all the time by her family.

Offline RightCoast

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Re: Any financial gurus here?
« Reply #1 on: January 03, 2008, 06:21:21 PM »
Most co-signed loans don't help the person that needed the help, I believe Toyota Financial is different, as I understand it they help (or hurt) both parties credit.  I do not know how it would impact your debt/ income ratio but I would think that it wouldn't bring you down as long as it wasn't a huge loan and the payments were on time.  However, to qualify that statement I will say I am no guru... :-)
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Offline Hawkgirl

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Re: Any financial gurus here?
« Reply #2 on: January 03, 2008, 06:34:58 PM »
You don't have to be a financial guru to answer the question as I am not and can answer it.  When you co-sign a loan, it's like you are taking out the loan yourself as you are just as responsible for the loan as the primary person.  It will show up on your credit also.

I know this from experience and have been screwed over as a result of it. 

My advice to anyone thinking about co-signing a loan is not to do it....even with family.

Offline Chris_

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Re: Any financial gurus here?
« Reply #3 on: January 03, 2008, 06:42:26 PM »
You don't have to be a financial guru to answer the question as I am not and can answer it.  When you co-sign a loan, it's like you are taking out the loan yourself as you are just as responsible for the loan as the primary person.  It will show up on your credit also.

I know this from experience and have been screwed over as a result of it. 

My advice to anyone thinking about co-signing a loan is not to do it....even with family.

That is the best advice you will ever get, anywhere. I might even say "especially with family."   Many a family has been torn asunder from money issues, ESPECIALLY loans.

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Offline Flame

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Re: Any financial gurus here?
« Reply #4 on: January 03, 2008, 06:56:38 PM »
I know the whole "dont loan money to family" thing..and believe me, if it was anyone but this kid, I wouldn't even consider it.

I think mostly I'm just so pissed at my sister that she would put her kid in this situation.

I just don't want my niece screwed over because my sister is a dumbass. 

I'm trying to find a way to help her out.


Offline Hawkgirl

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Re: Any financial gurus here?
« Reply #5 on: January 03, 2008, 07:22:38 PM »
I watch Suze Orman whenever I get a chance...She gives the best advice.
A caller asked Suze for advice on how to get out of 40K debt from a student loan she co-signed with her daughter and a 15K loan she co-signed with her son.

Her daughter who is now working, is constantly late on her payments and some months says she can not even pay.  She is not talking to her mother anymore because her mother is holding her accountable for this. Her son is unemployed and refuses to work...so she is responsible for his loan as well.

Suze's advice was to use her credit card to pay off the higher interest loans until she was old enough to tap into her annuities...Her advice continued with NEVER co-sign a loan for anyone.  She stated gift the money if you have the funds..and that should be the extent of it.


Offline Chris_

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Re: Any financial gurus here?
« Reply #6 on: January 03, 2008, 07:29:35 PM »
I know the whole "dont loan money to family" thing..and believe me, if it was anyone but this kid, I wouldn't even consider it.

I think mostly I'm just so pissed at my sister that she would put her kid in this situation.

I just don't want my niece screwed over because my sister is a dumbass. 

I'm trying to find a way to help her out.



Then GIVE her the money, or make a private loan with a mental note to yourself you will NEVER get paid back.  If you can do that, then by all means do so.

When my Mom was alive, a few times I "loaned" her some money. She insisted on it being a loan, but I never collected (nor did I even ask).

That is the only way to properly handle money in a family.  But even then, be careful.  You could start an issue about "favoritism" or initiate a hand-out line at your front door.


 
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Offline Hawkgirl

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Re: Any financial gurus here?
« Reply #7 on: January 03, 2008, 07:31:49 PM »

[/quote]

Then GIVE her the money, or make a private loan with a mental note to yourself you will NEVER get paid back.  If you can do that, then by all means do so.

When my Mom was alive, a few times I "loaned" her some money. She insisted on it being a loan, but I never collected (nor did I even ask).

That is the only way to properly handle money in a family.  But even then, be careful.  You could start an issue about "favoritism" or initiate a hand-out line at your front door.


 
[/quote]

Do you watch Suze too?  :)

Offline DixieBelle

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Re: Any financial gurus here?
« Reply #8 on: January 03, 2008, 08:52:45 PM »
what about financial aid? Has she worked with the financial aid office at the school? I've gone to college twice - the first time was out of my own pocket and my parents. the second time I had to take out student loans. This was years ago so I don't know how it all works now. I would think that it would pretty easy for her to get a student loan on her own - barring any unusual circumstances. If she can manage on her own, you're better off not signing anything for her. Money and family...... :banghead:
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Offline Taxman

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Re: Any financial gurus here?
« Reply #9 on: January 04, 2008, 09:12:14 AM »
The advice given to never co-sign is the best advice one can give.  My background is finance and accounting, in addition I do pro-bono work teaching people basic finance.  There are a LOT of people out there that do not understand concepts such as interest and how a checking account works.