There is a concerning rise in co-signers on auto loans in the US; a recent survey revealed that of the 2,000 co-signers, over half helped someone obtain a car loan, more than twice as many as had helped with a personal loan, according to CreditCards.com. Auto is clearly a little stretched, in my opinion," Jamie Dimon, JPMorganChase's chief, said last week. The problem has been exacerbated by the fact that, for years, lenders have allowed borrowers who are not current or past due payments to get credit cards without verifying their income and assets. In fact, the Federal Trade Commission has warned that in some US states creditors can even try and extract the money owing from the co-signer first. Of the co-signers in the CreditCards.com survey, nearly 40% ended up having to pay for at least part of the bill, while 28% of them saw a drop in their credit score due to the primary borrower's bad credit habits.
There is a concerning rise in co-signers on auto loans in the US; a recent survey revealed that of the 2,000 co-signers, over half helped someone obtain a car loan, more than twice as many as had helped with a personal loan, according to CreditCards.com. The problem has been exacerbated by the fact that, for years, lenders have allowed borrowers who are not current or past due payments to get credit cards without verifying their income and assets. In fact, the Federal Trade Commission has warned that in some US states creditors can even try and extract the money owing from the co-signer first. Of the co-signers in the CreditCards.com survey, nearly 40% ended up having to pay for at least part of the bill, while 28% of them saw a drop in their credit score due to the primary borrower's bad credit habits.