Would you co-sign for this loan

Discussion in 'Money Talk$' started by Salty, Jul 19, 2008.

  1. Salty

    Salty
    Expand Collapse
    20,000 Posts Club
    Moderator

    Joined:
    Apr 8, 2003
    Messages:
    22,073
    Likes Received:
    217
    We know the Bible says we normally should not co-sign, but what about a spouse. Is it alright to co-sign for a husband or wife?:wavey:
     
  2. StefanM

    StefanM
    Expand Collapse
    Well-Known Member

    Joined:
    Jul 4, 2004
    Messages:
    6,413
    Likes Received:
    70
    Yes. As husband and wife, you are united. No matter what, if either spouse takes out a loan, both of you are responsible for it. You might as well get the benefits of a joint application.
     
  3. TomVols

    TomVols
    Expand Collapse
    Administrator
    Administrator

    Joined:
    Oct 30, 2000
    Messages:
    11,170
    Likes Received:
    0
    There is debate about whether someone is prohibited from cosigning another's loan (guaranteeing another's debts). Taken literally, you're right...you'd be barred from doing so because your spouse is another person. But Stefan is right IMHO. I see no reason not to jointly have credit with your spouse, although I'm not sure what is meant by the "benefit"
     
  4. SaggyWoman

    SaggyWoman
    Expand Collapse
    Administrator
    Administrator

    Joined:
    Dec 15, 2000
    Messages:
    17,933
    Likes Received:
    8
    Why would you need to co sign for a spouse's loan?
     
  5. abcgrad94

    abcgrad94
    Expand Collapse
    Active Member

    Joined:
    Jan 12, 2007
    Messages:
    5,533
    Likes Received:
    0
    Saggy, I think in some cases there must be a co-signer "just in case." That way if the main person doesn't pay up, the bank can collect from the co-signer.
     
  6. SaggyWoman

    SaggyWoman
    Expand Collapse
    Administrator
    Administrator

    Joined:
    Dec 15, 2000
    Messages:
    17,933
    Likes Received:
    8
    I know what a co signer is, and it isn't good process to co sign for anyone.

    My question is why would you need to co sign for a spouse's loan? Usually they are borrowing together or one or the other borrows.
     
  7. ReformedBaptist

    ReformedBaptist
    Expand Collapse
    Well-Known Member

    Joined:
    Aug 7, 2007
    Messages:
    4,894
    Likes Received:
    27
    Yes. We file our taxes, Married Filing Jointly. We share all things and are one in our finances. Our ability to repay the loan is a joint effort. But like you said, why would there be a need to co-sign? Either the loan is in one spouse's name or its held jointly. If my wife were trying to purchase a car with a loan, and the lender would not approve the loan unless I co-signed, I would have to understand why we were putting the car in her name. If it were for the purpose of building her credit score, I would co-sign the loan...basically because I would be making the payment anyway. hahahaha.
     
    #7 ReformedBaptist, Aug 7, 2008
    Last edited by a moderator: Aug 7, 2008
  8. billwald

    billwald
    Expand Collapse
    Banned

    Joined:
    Jun 28, 2000
    Messages:
    11,414
    Likes Received:
    0
    There apparently are tax advantages for the widow/widower if the couple maintained separate savings and checking accounts. This can remove several thousands from the taxable estate. I am not qualified to give details but was just talking to a tax CPA about estate planning.

    He also noted that inheratences (SP?) and gifts are NOT community property unless the couple co-mingles the asset in one account.

    Further, my cast iron frying pan is NOT community property.
     

Share This Page

Loading...