As a point of fact, co-signing a loan can positively affect your credit almost as much as it can hurt it. The fact that the OP's friend cosigned the loan is really not the problem. The problem is that his irresponsible daughter failed to make the payments on time. That little fact was omitted from the OP's post; but it can be clearly inferred from the Lexus dealer's statement about his FICO score.Hi Joel,The OP's story simply made me think about the form my mother had to sign. I often see posts here about people who co-sign and then are upset when the loan is defaulted on, and want to know what to do now that they are responsible for a loan someone else promised to pay (it seems especially with ex-spouses). I was simply making an observation about something that the banks are trying to do to make sure one understands the consequences of signing for another. It of course is in the best interest of the bank, however, it is also educating consumers rather than simply telling them that it was in the fine print when they signed the contract after the loan is in collections.Wendy
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