Tips on Buying Cars: How to Co sign a loan for my son, credit worthiness, credit crunch

Question
I have a very responsible son who is in the U.S. Air Force and desires to purchase a new car (his first). The dealer said he would need a co-signer since he is 19 and has no credit of his own. What does it take to qualify as a co-signer? I am a single parent with my own home and I currently make payments on my own 3 year old car. I am also a cancer survivor with old medical bills on my credit. I had no problem getting my own financing but would it be like me trying to buy myself another vehicle or am I simply a back up source to the lender? I don't want to disappoint my son by not being "good enough" to co-sign. My credit is fair to good. Help!

Answer
Lisa,

Cosigning on a loan for a child is very very common these days.  Especially in the credit crunch we currently have.  More than likely the dealership is correct, your son will need to have a cosigner due to his lack of credit established at the young age of 19 which is also common.  Being the person that I am, I always caution people on cosigning for loans.  You know your son better than anyone, and if you think that He is responsible enough to make the payments ON TIME, then it shouldn't be a problem for you to cosign.  Now, as to your credit worthiness.  Now, I am not looking at your credit bureau, so I don't have all of the information, nor am I in need of it since you aren't buying a car from me.  Without having that information in front of me, and based on the information you have given me about your credit, I think you will qualify as a cosigner.  Here are the things that lenders look at for cosigners:

1.  Your Credit - 90% of Americans have medical bills on their credit.  Medical bills do not weigh very heavily on your credit score for that reason, and most lenders don't look at the or weigh them very heavily.
2.  Can you make the payments if the buyer defaults on the loan.  For example to you have the income to substantiate the loan.
3.  Your stability.  Have you been at the same residence for a while, and the same job for a while.
4.  Your overall credit worthiness.  How do you pay your bills, are you late often, or do you make on time payments all the time or the majority of the time.  

From what you are telling me, it sounds like you will qualify.  

I hope this helps.

Thanks - JB