Co-sign a Note

[ksk]

My son co-signed a note for my granddaughter's car.She lost her job and the car.Now my son is responsible but unable to make the payments.I know this affects his cedit rating.How many years will this show up?Thanks..

[INTOTHEBLUE]

I have been told it's 7 years. This seems to be true because I had something bad on my credit report since 2004 and now it's gone.

[Tortuga]

Old Banker friend of mine told me many years ago....

"NEVER, NEVER, EVER, EVER co-sign a note for ANYBODY...friends, family..or GOD..."

Course he told me this after I got stuck on one.. Don't have a clue on how many years it affects your rating.. In my case it didn't affect it at all...I just had to pay off the note.

[fangard]

If she lost the car, there must have been some sort of disposition regarding the repo. Auction, wholesale, retail. Find out what the balance is so he knows what he is up against. Statute says 7 years, however they can only legally collect on it for 4. Go figure.

[ksk]

My son tells me that a collection agency will settle for much less than what is owed.If he were to ''pay off'' the less amount,does it still show up on the credit rating? Thanks..

[thabeezer]

It will show as a collection paid unless he can get them to send him a letter that they will delete the account for payment. They will fight tooth and nail on not sending the letter. Don't send a single dime until the letter is in hand.

I have spent many years cleaning up my credit form some mistakes in college.

[Hesser]

Paying a collection agency DOES NOT always settle the bill. They have been know to take the payment and then sell the real bill to another collection agency. Yes, the "reduced or payoff" will be settled with that collection agency, but not with the original creditor.

[dan_wrider]

From what I know of it, it will hurt credit for 7 years after the debt is settled. If it is not settled then it can haunt indefinitly. I believe every time the debt gets sold the 7 year timetable starts over.

[Shaky]

Originally Posted by dan_wrider

From what I know of it, it will hurt credit for 7 years after the debt is settled. If it is not settled then it can haunt indefinitly. I believe every time the debt gets sold the 7 year timetable starts over.

Not true. The only way an old debt can be re-set for the 7 years is if you start up payments with a collection agency or the original debt originator.

To the op, youir son is facing some pretty harrassing phone calls in his future, if he can set up some kind of reasonable payments with the original creditor he would be much better off. However as the debt goes through the collection cycle (sold off to one company, then another, and another etc.....) they (the collection companies) get nastier and meaner.

[w_r_ranch]

Originally Posted by Tortuga

"NEVER, NEVER, EVER, EVER co-sign a note for ANYBODY...friends, family..or GOD..."

Daddy said the same thing...

He also said the only thing you should ever take a loan on was a house. Everything else was paid in cash or you didn't need it.