Dear Experian,

If a car loan is opened in a minor’s name as a joint loan with a parent co-signer can it be reported as a repossession on the minor’s credit if the car is repossessed?

- ABA

Dear ABA,

A joint or co-signed loan will appear on both credit reports because both parties share full responsibility for the debt, even if one part is a minor. The status of the account will also be shown, so a repossession would appear on both your report and the minor’s.

We encourage everyone to be very cautious about cosigning for a loan or adding someone as a joint account holder, even if that person is a close relative. If one of you mismanages the account both of your credit histories will be damaged.

Before agreeing to cosign an account or become a joint account holder, be certain that both of you understand the risk that you are taking and the great responsibility you have to the other person.

Thanks for asking.