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Author Topic: Question re: Credit  (Read 1186 times)

Boscat

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Question re: Credit
« on: July 17, 2007, 01:44:49 PM »
I apologize in advance, if this is in the wrong thread -- it seemed the most appropriate though.

I am planning to start law school in fall 2008 and will be financing it primarily through the usual loan route (unless I happen to receive any scholarship/grant $$$).

My sister just asked me to co-sign on a loan for her for a recreational vehicle.  I would love to help her out and I have no doubt that she can make the necessary payments.  For reasons I won't get into here, her husband is not on the loan (poor credit - bad deal on a truck) and she's not really comfortable asking anyone else.

My question is this...  If I co-sign on this loan (for about $25k), how will it affect me when the time comes for me to apply for LS loans?  My credit is pretty decent right now...

Advice?  Recommendations?

My UGPA was Pi

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Re: Question re: Credit
« Reply #1 on: July 19, 2007, 12:41:37 AM »
I doubt it will have any impact at all.  For Stafford loans, they don't even look at your credit report, and GradPlus just does a cursory review for negative information.  Private loans might be a different story, though.

That being said, it's a really, really bad idea to cosign for any loan you aren't willing and able to pay yourself.  But you knew that already.  Come on--an RV?  It's not like you're cosigning on a basic car to get he back and forth to work.  This is something that she needs to figure out on her own, or do without.  That's the opinion of this anonymous internet poster, anyway.

Boscat

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Re: Question re: Credit
« Reply #2 on: July 19, 2007, 12:07:39 PM »
I do agree with you -- I guess I just wanted a little affirmation.

Thanks.

chydiva82

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Re: Question re: Credit
« Reply #3 on: July 20, 2007, 03:56:55 AM »
I doubt it will have any impact at all.  For Stafford loans, they don't even look at your credit report, and GradPlus just does a cursory review for negative information.  Private loans might be a different story, though.

That being said, it's a really, really bad idea to cosign for any loan you aren't willing and able to pay yourself.  But you knew that already.  Come on--an RV?  It's not like you're cosigning on a basic car to get he back and forth to work.  This is something that she needs to figure out on her own, or do without.  That's the opinion of this anonymous internet poster, anyway.

I 100% agree with the bolded. I have heard too many horror stories about co-signing on loans...be it your family or your BFF, it is not really a smart move to make esp. when you have a stellar credit score (as you say that you do)

Oh yeah, and I can put myself in your position...My sister asked me the same thing last year when she was planning on buying a car  (same situation, she need a co-signer and my credit was cool, not excellent but average), Needless to say, I had to tell her no...I love her to death but a lot can happen in 5 years (i.e the period of time given to pay off the loan) and I will have my *own* loans to worry about paying back as I'm sure you will too.

Sweetpri

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Re: Question re: Credit
« Reply #4 on: July 20, 2007, 08:05:11 AM »
My sister asked me the same thing just last week and I had to tell her no as well.  Remember, you may be confident in her ability to make payments right now, but in the event that she loses her job or something happens and she can't make the payments, if you don't have the money to make them either your credit report will suffer.  Only do it if you have the back-up money to make the payments (which you would also be willing to use) if you need to.
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