question about financing

C

comet traveler

Seaman Apprentice
Joined
Feb 4, 2005
Messages
37
Ok, if I have good credit but i have a person co sign who has bad credit will that make it less likely to get a loan? I know that kind of defies the point of a cosigner, but I'm just asking. I can't seem to find the answer anywhere online. So, can a cosigner bring my chances down if they have bad credit? Thanks!!
 
CATransplant

CATransplant

Admiral
Joined
Feb 26, 2005
Messages
6,319
Re: question about financing

OK, here's the pertinent question: If you have good credit, why do you need a co-signer? I'd think the people with the money will have the same question for you.<br /><br />If you're overextended, a co-signer with bad credit won't do you much good. Maybe it's time to rethink the purchase.
 
V

vipzach

Lieutenant
Joined
Feb 15, 2005
Messages
1,283
Re: question about financing

Short answer is yes. The big thing though is how "good" your credit is. Why do you want a cosigner if your credit is good? If your credit is strong enough you problt won't have any problems.
 
M

Mahoney

Chief Petty Officer
Joined
Aug 2, 2004
Messages
537
Re: question about financing

I wont excactly come out and say if you have to finance it, you should consider something you dont have to finance, but....<br /><br />A boat purchase is not in anyway an investment financially. You will be loosing money left and right on the financial side due to depeciation, let alone whatever finance charge you are paying.<br /><br />It will also cost you in routine maintainance as well. Unless you plan on paying off the loan very quickly, plan on loosing even more cash if you ever decide to get into something different a couple years down the road.<br /><br />Its never fun to still owe 10K on a boat you already sold for half what you financed it for.
 
Silvertip

Silvertip

Supreme Mariner
Joined
Sep 22, 2003
Messages
28,762
Re: question about financing

Look at this from the lenders perspective. Two red flags immediately go up. Would any lender even think about approving a note co-signed by someone with bad credit? I think not. The co-signer has bad credit because he/she is a high credit risk. And as was mentioned previously, if your credit is ok, you shouldn't need a co-signer. If you default, the lender has zip of a chance of recovering.
 
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