Why are ppl so reluctant to co-sign loans usually? - Sitcoms Online Message Boards

Frump · 02-23-2013, 03:07 PM

I know the first response is b/c they don't wanna get stuck paying it off, but really.....

It seems like no matter WHAT the amount was, or no matter who or what it's for, most ppl would rather do ANYTHING than co-sign, it wouldn't matter if it was for 10$ for someone you've known all your life and you know to be relieble, there is just something ppl hate about having their name on a loan.

I was needing a cosigner once and asked this man who was a good friend of mine to do it, and it was for $4000.00 and he would do it and he told me IF he had the money he would just GIVE it to me as a gift and not expect it back before he would co-sign....does that make sense?

Marvo301 · 02-23-2013, 04:38 PM

To co-sign a loan for another person requires trust in that person and their ability to repay the loan. Unfortunately trust is a very rare commodity these days. And considering the current state of the economy its understanable that trust would be lacking when it comes to matters of finance.

AB · 02-24-2013, 04:37 PM

Most people don't want to take that risk. And no matter how well you know someone, it doesn't mean they'll be able to repay the loan. We co-signed for my husband's brother to buy a used car and he lost his job & couldn't pay for it. My husband ended up making the last 6 payments on a car that we didn't even get to drive. So we no longer co-sign loans for anyone.

HuntingtonM15 · 02-24-2013, 04:55 PM

Quote:

Originally Posted by Frump

I know the first response is b/c they don't wanna get stuck paying it off, but really.....

Lol, that's really the only response. There is no, "but really..." If there is a default in paying the loan, you either pay it or have your credit destroyed as well. I really cannot think of anyone who I would do it for at the current time.

HuntingtonM15 · 02-24-2013, 04:56 PM

Quote:

Originally Posted by AB

We co-signed for my husband's brother to buy a used car and he lost his job & couldn't pay for it. My husband ended up making the last 6 payments on a car that we didn't even get to drive. So we no longer co-sign loans for anyone.

That's a perfect example of why people are, and should be reluctant to co-sign.

shotzette · 02-24-2013, 09:10 PM

Quote:

Originally Posted by Frump

I know the first response is b/c they don't wanna get stuck paying it off, but really.....

That's the main issue, but there's also the fact that the loaner's credit (which we all guard like gold these days) could be negatively affected if the loanee defaults.

Frump · 02-24-2013, 10:49 PM

Te credit part I can understand, BUT when I was trying to find a co-signer, there was more than a couple of ppl who said IF they had the money would actually just GIVE it to me as a gift before they would co-sign.

And I've heard a lot of ppl say, "I wouldn't co sign ANYTHING, I don't care if it was just for 10$, now I would give someone the money if I had it, but I ain't co-signing!" I just don't really get that reasoning.

It reminds me of something else when I was young. I remember ppl use to be reluctant to let you make a long distant call from their phone, it's almost like making a long distant call is the absolute NO-NO!

I remember once wanting to make a L.D. call from someone's phone and they wouldn't let me, and I even OFFERED them the money right there and then, I was going to give it to them right then for them to put on the phone bill and they were like, "No hun I'm sorry, I just don't want it on my phone bill!"

There are just certain things ppl do NOT like to do lol

Janice Johnson · 02-25-2013, 09:14 AM

Somebody who is financial savvy said basically the only people who co-sign nowadays are parents.....

The Flying Dutchmans · 02-28-2013, 09:03 PM

Many friendships are lost over this sort of thing.

Waterston_Fan · 02-28-2013, 11:09 PM

I think when people say they don't want to, the probably just don't want to hurt the person's feelings and say, I don't trust you to pay me back.

Tweety · 02-28-2013, 11:54 PM

There are VERY few "good" reasons to co-sign a loan.

Would you take the loan in your name alone and then give the person who needs the co-signer the proceeds? In effect, that's what you'd be doing if they lose their ability to repay the loan (or if they simply refuse to pay). You end up being stuck. If you wouldn't do that, you shouldn't co sign.

I think a parent can co-sign on a small loan for a child in order for the child to establish credit. But it shouldn't be for anything more than a credit card with a limit of maybe $250 to $500. And before they do ANYTHING else, make sure they're in the habit of paying off the card in full every month.

Co signing on a car loan for a child can be OK, but if possible, it's much better to have them save up and pay cash (you can kick in some of the purchase price too if the child has shown they can handle responsibility). That's much tougher to do with new cars, but there's really no such thing as a kid who needs a new car. Look for a used car that's in good condition and is safe.

Tweety · 02-28-2013, 11:55 PM

Quote:

Originally Posted by Frump

I know the first response is b/c they don't wanna get stuck paying it off, but really.....

It seems like no matter WHAT the amount was, or no matter who or what it's for, most ppl would rather do ANYTHING than co-sign, it wouldn't matter if it was for 10$ for someone you've known all your life and you know to be relieble, there is just something ppl hate about having their name on a loan.

I was needing a cosigner once and asked this man who was a good friend of mine to do it, and it was for $4000.00 and he would do it and he told me IF he had the money he would just GIVE it to me as a gift and not expect it back before he would co-sign....does that make sense?

What did you need a co-signer for? What was the purpose of the loan?

Keep in mind that it's real easy for them to say they'd give you the money if they had it. Take that with a grain of salt, because they probably wouldn't.

RoryGilmore · 03-01-2013, 05:31 PM

I wouldnt even cosign for my fiance on his car loan last year. I know he'll pay it and all but I didnt want to risk something happening to us and him not paying and it fall back on me.

The car is already payed off and now we refuse to take any more loans except when it comes time to buy a house. Besides house we feel that if we cant afford to pay outright then we dont need it

Tweety · 03-01-2013, 11:36 PM

Quote:

Originally Posted by RosewoodPrettyLiar

I wouldnt even cosign for my fiance on his car loan last year. I know he'll pay it and all but I didnt want to risk something happening to us and him not paying and it fall back on me.

The car is already payed off and now we refuse to take any more loans except when it comes time to buy a house. Besides house we feel that if we cant afford to pay outright then we dont need it

That's awesome! And that's the only way to be.

And I'm speaking as someone who's been in banking for three decades. IMO, the ONLY time an individual should consider getting a loan is to buy a house. And if you want a credit card for convenience, pay it off in full every month.

Frump · 03-02-2013, 12:10 AM

I would co sign if A. I had the money to back it and B. I knew the person well, amd C. The amount would be taken into consideration.

Well I kinda think it's good to take out a loan at least once, it's good to establish credit, IF you ever REALLY need a lone someday.

02-23-2013, 03:07 PM	#1
Frump Member Senior Member Join Date: Feb 06, 2003 Location: McMinnville Posts: 1,206	Why are ppl so reluctant to co-sign loans usually? I know the first response is b/c they don't wanna get stuck paying it off, but really..... It seems like no matter WHAT the amount was, or no matter who or what it's for, most ppl would rather do ANYTHING than co-sign, it wouldn't matter if it was for 10$ for someone you've known all your life and you know to be relieble, there is just something ppl hate about having their name on a loan. I was needing a cosigner once and asked this man who was a good friend of mine to do it, and it was for $4000.00 and he would do it and he told me IF he had the money he would just GIVE it to me as a gift and not expect it back before he would co-sign....does that make sense?
	__________________ Frump

02-23-2013, 04:38 PM	#2
Marvo301 I'm NOT a Blockhead! Forum Celebrity Join Date: May 17, 2002 Location: The Great White North Posts: 21,452	To co-sign a loan for another person requires trust in that person and their ability to repay the loan. Unfortunately trust is a very rare commodity these days. And considering the current state of the economy its understanable that trust would be lacking when it comes to matters of finance.
	__________________ Only a life lived for others is worth living. Albert Einstein A life isn't worth living unless it has impact on other lives. Jackie Robinson Be always at war with your vices, at peace with your neighbors, and let each new year find you a better man. Benjamin Franklin

02-28-2013, 09:03 PM	#9
The Flying Dutchmans Member Senior Member Join Date: Apr 30, 2006 Location: New York Posts: 1,017	Many friendships are lost over this sort of thing.
	__________________ A strange red light as of a phantom ship all aglow, in the midst of which light the mast, spars and sails of a brig 200 yards distant stood out in strong relief." The Flying Dutchman

02-28-2013, 11:54 PM	#11
Tweety Member Forum Veteran Join Date: Jan 18, 2002 Location: Florida Posts: 6,804	There are VERY few "good" reasons to co-sign a loan. Would you take the loan in your name alone and then give the person who needs the co-signer the proceeds? In effect, that's what you'd be doing if they lose their ability to repay the loan (or if they simply refuse to pay). You end up being stuck. If you wouldn't do that, you shouldn't co sign. I think a parent can co-sign on a small loan for a child in order for the child to establish credit. But it shouldn't be for anything more than a credit card with a limit of maybe $250 to $500. And before they do ANYTHING else, make sure they're in the habit of paying off the card in full every month. Co signing on a car loan for a child can be OK, but if possible, it's much better to have them save up and pay cash (you can kick in some of the purchase price too if the child has shown they can handle responsibility). That's much tougher to do with new cars, but there's really no such thing as a kid who needs a new car. Look for a used car that's in good condition and is safe.
	__________________ Straight, and VERY proud of it. No, that's OK, I don't need a parade.

03-01-2013, 05:31 PM	#13
RoryGilmore Always and Forever Forum Veteran Join Date: Oct 30, 2004 Location: Wherever he is, that's where I'll be Posts: 6,529	I wouldnt even cosign for my fiance on his car loan last year. I know he'll pay it and all but I didnt want to risk something happening to us and him not paying and it fall back on me. The car is already payed off and now we refuse to take any more loans except when it comes time to buy a house. Besides house we feel that if we cant afford to pay outright then we dont need it
	__________________ I have died everyday, waiting for you Darling, don't be afraid, I have loved you for a thousand years I'll love you for a thousand more And all along I believed, I would find you Time has brought your heart to me, I have loved you for a thousand years I'll love you for a thousand more

02-24-2013, 04:37 PM	#3
AB Member Eternal Member Forum Icon Join Date: Dec 26, 2006 Location: The South Posts: 59,429	Most people don't want to take that risk. And no matter how well you know someone, it doesn't mean they'll be able to repay the loan. We co-signed for my husband's brother to buy a used car and he lost his job & couldn't pay for it. My husband ended up making the last 6 payments on a car that we didn't even get to drive. So we no longer co-sign loans for anyone.

02-24-2013, 10:49 PM	#7
Frump Member Senior Member Join Date: Feb 06, 2003 Location: McMinnville Posts: 1,206	Te credit part I can understand, BUT when I was trying to find a co-signer, there was more than a couple of ppl who said IF they had the money would actually just GIVE it to me as a gift before they would co-sign. And I've heard a lot of ppl say, "I wouldn't co sign ANYTHING, I don't care if it was just for 10$, now I would give someone the money if I had it, but I ain't co-signing!" I just don't really get that reasoning. It reminds me of something else when I was young. I remember ppl use to be reluctant to let you make a long distant call from their phone, it's almost like making a long distant call is the absolute NO-NO! I remember once wanting to make a L.D. call from someone's phone and they wouldn't let me, and I even OFFERED them the money right there and then, I was going to give it to them right then for them to put on the phone bill and they were like, "No hun I'm sorry, I just don't want it on my phone bill!" There are just certain things ppl do NOT like to do lol

02-25-2013, 09:14 AM	#8
Janice Johnson Commercial Lover Forum 4000 Club Member Join Date: May 30, 2003 Location: Miami, Florida Posts: 4,738	Somebody who is financial savvy said basically the only people who co-sign nowadays are parents.....

02-28-2013, 11:09 PM	#10
Waterston_Fan Eternal Member Eternal Member Forum 3000 Club Member Join Date: Dec 26, 2005 Location: Southern California Posts: 3,195	I think when people say they don't want to, the probably just don't want to hurt the person's feelings and say, I don't trust you to pay me back.

03-02-2013, 12:10 AM	#15
Frump Member Senior Member Join Date: Feb 06, 2003 Location: McMinnville Posts: 1,206	I would co sign if A. I had the money to back it and B. I knew the person well, amd C. The amount would be taken into consideration. Well I kinda think it's good to take out a loan at least once, it's good to establish credit, IF you ever REALLY need a lone someday.