How to add myself as a co-signer to a exsisting car loan?
My Dad bought a car with a repo on his credit. His payments are mostly interest. I belive like 22% interest. I have been on my job for 6 months now and have never been on a auto loan EVER before. I would like have my Dad refinance his loan and use me as a co-signer to see if the payments would be cheaper and to build credit. Is this possible with me having NO CREDIT. not good credit but also not bad credit. I know I want to do this because I can afford to help with the car loan and he would give me the car to drive and I need to build my credit. Just want to know how it works or if anyone knows if it would make the payments cheaper
Comments
this would be a very very bad idea. if your dad had 1 car reposessed, seems reasonable that he will do the same on this car...but if your name was on the loan, the you would have a repo on your recoed as well.
Try a credit union; they are easier to work with than banks. If the statement: "He would give me the car to drive." is accurate, then it may be wise to just have him sell it to you. If you co-sign for a loan, you have the worst of both worlds, he is still the owner and can do anything he wants with the car and you are still on the hook for the payments, if he is unable to make them.
You are going to have to work hard and most likely, you will have great difficulty in getting a bank or credit union to allow you to co sign or even get a loan at a good rate. Expect 19 -27 % interest - If they give you a loan at all. A good payment would help, say 25 % down of the loan. You may get a credit union to give 16 -19 % interest. give it try and don't no be the final answer, you may have to go to several different places- Don't give up! Good Luck
If you want to help with the payments, just pay some extra every month (100 ? 200 ?), and get the loan paid off sooner. << this requires honorableness on your dad's part to keep paying his regular monthly payments. NEVER be a co-signer (except on your marriage license - lol).
You have plenty of time to build your credit, and should do so with the wise use of a credit card.
well his credit history isnt any good thus the interest rate that he agreed to to get the car...
you can ask the house that holds the paper if you can do anything to move the payment/int. rate
lower, but at this point, unless you became the owner of the note with him as secondary doubt
there is much you can do about it...so..you'll have to sit down with them and see where you are
at with the whole deal and what can be done..or see if another credit house will buy the note and
write you a fresh note at a better rate....got some legwork to do, so get with it, but dont get your
hopes up...best case is you can retire that note and be done with them. you co signing doesnt
do much for your name other than hinder you for future possible things you might want to do and
need money for
As of February 2010, you have to be 21 and employed full time 12/18 months. On the first half of any loan he will pay mostly interest. To cut down on the high interest rate, he can pay extra each month which would cut down on the loan agreement
I wish you were asking if this was a good idea because the answer would be no.
Regarding getting a lower interest, probably will not help. Since you have no credit, co-signing probably won't help your dad get a lower rate.