I’ve seen it on paperwork, but I probably read it wrong, but here it goes. My friend bought a 04 Grand Prix GTP a year and a half ago. He had no credit at the time (we were high school students). I had very good credit in high school and still do till this day. Anyway, when he and his dad went car shopping, he found the car he liked and they went to the credit union. His dad is the one who applied for the loan and he’s the co-signer. I didn’t know you could do it that way. So one the paperwork his dad is the owner and he’s the co-owner. The way I see it is they went off his dad’s perfect credit instead of looking at his no credit and needing his dad as the co-signer. His interest rate is 5%! The reason why I asked this is, because IF you could be the applying for the loan (good credit) and having someone co-sign (bad/no credit) wouldn’t it help them the same way? I thought a co-signer was to guarantee the loan. His paperwork was all made out for his Dad (who has great credit) and he was the co-signer/co-owner.

So for a scenario, say when my little nephew turns 18 in 2 years or so, I go an apply for a small personal loan ($500), have him co-sign with me and leave the money in my account, that way I know he’ll build good credit. Can it work that way? Sounds a lot safer doing it that way than actually letting the one WITH good credit be the co-signer and not the signer. Can’t always trust people to pay their bills, ruining their credit and yours.

So what my friend does, is give the money to his dad to put in his dad’s account. That way the car payment is made on time. What do you guys think?
CatDad I already do have good credit. I guess it’ll be easier for my nephew to get a secured card when the time comes.
I was just asking if it could be done this way?

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