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Author Topic: How much difference does a co-signer make?  (Read 1333 times)

linquest

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How much difference does a co-signer make?
« on: August 18, 2005, 05:47:47 PM »
Trying to decide whether or not I should ask my parents to co-sign.  I'd rather not (independent streak), but I'd like to know how much money it might save me.

I have good credit (low to mid 700s), and have earned no less than $50K/year in the last 3 years but just recently quit my job.  I do still have about $10K of undergrad loans though, but I don't know if that makes a difference.
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Re: How much difference does a co-signer make?
« Reply #1 on: August 18, 2005, 08:11:45 PM »
you should really only use a cosigner if your credit is so bad you can't get a loan on your own.  generally, taking out a loan with a cosigner doesn't get you the lowest rate, and since your credit score is decent, the rate you'd get without a cosigner will probably be the same as if you took the loan out on your own.

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Re: How much difference does a co-signer make?
« Reply #2 on: August 18, 2005, 09:38:54 PM »
you should really only use a cosigner if your credit is so bad you can't get a loan on your own.  generally, taking out a loan with a cosigner doesn't get you the lowest rate, and since your credit score is decent, the rate you'd get without a cosigner will probably be the same as if you took the loan out on your own.

Additionally, at least one lender (The Access group) will only allow a cosigner of you fail to qualify on your own, and you (based on your credit score) should be fine. Good luck.

linquest

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Re: How much difference does a co-signer make?
« Reply #3 on: August 22, 2005, 10:08:29 AM »
Where can you find what constitutes "good credit". I see people mentioning the 700's as being good. Is there a scale/chart somewhere?

 He didn't know what bureau the dealer went through, but was told his # was 823. Based on comments here, that appears to be good - any chance any of that would rub off on my credit report?

I don't know if the credit bureaus have different score ranges, so you'll need to look into that.  I know that Experian's range is 330 to 830, so if the score was with them, that's definitely an Excellent score!  I've also heard that 700 and above is considered above average.
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Re: How much difference does a co-signer make?
« Reply #4 on: August 22, 2005, 02:48:14 PM »
i'm not sure if parents getting a credit card in your name but linked to their account will help you very much, if at all.

as far as credit scores go, you can check out fico.com to see what various score ranging mean in terms of credit quality.  keep in mind though, that different kinds of lenders ask credit agencies for different information to calculate the credit score they'll use in determining the interest rate (or even if you'll qualify for a loan to begin with).  for example, a mortgage lender might base its score on slightly different information than a car loan provider.  there shouldn't be a drastic difference in scores, but don't be surprised if the scores arent' the same from the two lenders.