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Question

kathy
Newcomer

kathy asked 7 months ago in Mortgage

Can your credit be harmed if you are the co-signer and the other person's checks bounce?

If you are a co-signer on an auto loan and the other party is using and making the payments on the vehicle, can the co-signer's credit be harmed if the other party's check bounces?

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Steve Heideman
FiLife Contributor
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If you are a co-signer on a persons loan and if that person sends in a check and that check to pay the liabilities bounces making the payment late, that would effect your credit score as well. As a co-signer you have all the same risks to your credit as if you were the main signer. Always be aware of who you are signing for and make sure that person is making timely payments.

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