Getting Parents to Co-Sign your Loans

["Legapp" Stands for "Legal Application"]

My credit is not great, while my parents have a perfect record. Is it a good idea to get them to co-sign a loan?

Has anyone ever done this?  Whose credit score do they use to determine interest?

I want to broach this subject early to them, so they'll have time to think it over... that's why I'm asking about it right now.

[pgcc]

I'm nervous over the same thing. Credit sucks and I maght need a co=signer. My Grandmother is 87 maybe she would do it??

[zenpeaceofmind]

My credit is not great, while my parents have a perfect record. Is it a good idea to get them to co-sign a loan?

Has anyone ever done this?  Whose credit score do they use to determine interest?

I want to broach this subject early to them, so they'll have time to think it over... that's why I'm asking about it right now.

Check out the threads from last year on this. The interest rate is partially determined by the fact that you have a cosigner, but they mostly take the co-signers credit into consideration. I already asked, and it took a big weight off my shoulders to get the "yes" answer.

 

[LostMyMonkeys]

One thing to consider is that while yes, if you have a co signer with good credit, they will use the beter of the two, they wil also require documentation from the co signer, usually pay stubs, bank statements, and the like. This may vary depending on which company doing the lending, but if I used a co signer with sallie mae or wells fargo private law loans, they would have required my husbands pay stubs and all that. Not that it is a big deal when it is my husband, but if I had to get that stuff from my parents, it might be more of a hassle.

[zenpeaceofmind]

One thing to consider is that while yes, if you have a co signer with good credit, they will use the beter of the two, they wil also require documentation from the co signer, usually pay stubs, bank statements, and the like. This may vary depending on which company doing the lending, but if I used a co signer with sallie mae or wells fargo private law loans, they would have required my husbands pay stubs and all that. Not that it is a big deal when it is my husband, but if I had to get that stuff from my parents, it might be more of a hassle.

There are also some threads from last year that list which companies do not require income docs from the co-signer.