Be honest with your
I am applying for a car loan and my parents are co-signing
for me. I have $1,500 outstanding with a credit collection agency. Will my parents
be told this when they co-sign for me? -- Angela
Shame on you for not telling your parents
about the $1,500 debt when you asked them to co-sign the car loan application
for you. Don't try to hide this debt from them; they deserve to know what they're
getting into by helping you out.
Co-signing a loan is
a very serious business; as co-signers, your parents assume as much responsibility
for the car loan as you do.
If you don't make the payments,
the black mark goes on your credit report and on their credit reports as well,
and the three of you get to live with the consequences for seven long years.
credit report is already a mess; take the high road and let your parents decide
if they want to risk co-signing a loan for someone with your debt history. The
Diva would advise against it, but parents are saints when it comes to giving kids
a second chance.
If your parents do co-sign for you, tell them
that you understand the responsibility they are assuming and express your appreciation
for their vote of confidence. Show your gratitude by making the car payments in
a timely manner and promise them that you will tell them in advance if you cannot
make a payment on time. This will give them the opportunity to do what needs to
be done to protect their credit rating.