Loans Answers

Help I need answers

Question: About almost 2 yrs ago I went with a friend to a electronics store called Krazy Kelleys which I know now is bankrupt and is taken over by the Assosiates. Ok, my friend wanted me to co-sign for him for some products he wanted to buy on credit. So I said well let me see if I can get approved first. So I filled a application form to see if credit would be granted. Now they said I did get approved for credit but I never signed saying to them to let my friend use me as a co-signer. So 4 months ago I wanted to get a loan but was denied because my credit status was at a R9 (In canada its Deatbeat non-payment status). So to make a long story short. My friend wasn’t paying his bills on time and my name was on the application as a co-signer…so I am wondering is this legal that as soon as I sign to see if I have available credit I am automatically in as a co-signer?

Answer: 1. Did you read what you signed?

2. Do you keep a copy of what you signed?

3. It does not matter what they tell you. The wording on the form/contract you sign is what you are agreeing to. The word “Application” is a clue.

4. If your “friend” could not get his own credit, this is a clue that he is not a responsible person.

5. Inform your “friend” that he has messed up your credit, possibly for 7 years. Ask him to make his payments on time -or- if he can’t, to notify you. You would be best to make the payments for him – on time each month for about a year, then pay off the loan. This might correct the bad credit. Then try to get the money from him to repay you.

6. You may be able to contact the lender and get them to remove the derogatory infromation from your credit report. Ask them if they would agree to do this if you paid off the balance of the loan. Ask for this in writing. If they don’t agree to remove the derogatory information, then try making the payments yourself.

7. If you can’t make the payments on time for a year or pay off the loan, expect to pay cash for everything for the next several years, possibly 7 years.

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Filed under: Bad Credit Loan