What affects the credit score?

Can cosigning for a family member affect my credit score?I’ve no clue what affects the credit score

5 Answers

When you cosign a loan for your family member, then you will be held responsible to pay off the borrowed amount in case the family member doesn't make the payments on time or turns out to be a defaulter. As such, this is going to affect your credit score, for sure.

 


 

Whenever you cosign a loan, you become equally responsible for the amount borrowed. So, there are chances for your credit score to get hurt due to revolving utilization of that cosigned account.


There are five factors that may affect the credit score are as follows: payment history, total debt and total available credit, length of positive credit history, mix of types of credit and new credit application. Yes, cosigning can affect your credit score if the person for whom you have cosigned defaults on payment. In this situation, you’ll be legally held responsible for repayment of the cosigned debt.


Be prepared to lose a number of points if the primary borrower gets delinquent on the loan. Your credit will suffer big time.


YES


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