No. of Recommendations: 2
A low fico score can be very costly. A buddy of mine picked up his lifetime dream car, a lexus RX330, yesterday. Since he made the mistake of co-signing a loan for his stepdaughter, and she made two payments late last year, his score is 674. That made his payments, according to the Lexus dealer, $30/month higher. If he had been over 700, he would have saved about $1400 over the 48 month term of the lease.

And this goes to show why cosigning <> good.

This statement from the Don't Apply for a Cap One card made me think of my experience with my parents buying a new car this past Saturday.

They bought a new Ford and were going to pay cash, however, Ford was offering an extra $1500 off if you financed. They decided to finance but will pay the car off immediately.

When they were signing the paperwork, my mother had to read and sign a piece of paper stating that as the co-signer on the loan, she understood that she would be responsible for the loan should my father default. The loan officer stated that it is now required that any co-signer understand this point.


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