Being a cosigner can help build your credit

Dear Experian,

I currently have no credit. Not bad credit, no credit. I am interested in purchasing a new vehicle and a family member has offered to cosign. However, we’ve been offered zero percent interest because of her excellent credit but only if she’s the primary and I cosign. If we do this and I am the one who makes the payments monthly, will me being the cosigner give a positive effect and establish my credit?



Dear SSL,

The primary loan holder and cosigner share equal responsibility for the debt, and the loan will appear on both your credit report and hers. As a result, it will help you build a credit history.

Because the account and how it is paid will appear on both of your credit reports, it is essential that you make all of the payments on time. Any late payments will hurt both you and her.

When someone agrees to share responsibility for a loan with you, they are taking a financial risk. They are putting great trust in you to be responsible in making the payments. Be sure to thank your family member for taking a chance to help you, and be certain to make sure you don’t let her down in paying back the debt.

Thanks for asking.

- The “Ask Experian” team

Our policies for Ask Experian:

The information contained in Ask Experian is for educational purposes only and is not legal advice. You should consult your own attorney or seek specific advice from a legal professional regarding your particular situation. Please understand that Experian policies change over time. Posts reflect Experian policy at the time of writing. While maintained for your information, archived posts may not reflect current Experian policy. The Ask Experian team cannot respond to each question individually. However, if your question is of interest to a wide audience of consumers, the Experian team will include it in a future post.