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some help getting back on his feet. He just got a new job that’s a quick walk from his house, and he also found a used car at a reasonable price. He’s asking me to co- sign for him, so he’ll have a way to run errands and get around. He has promised me that he’ll make all the pay- ments, so it won’t impact my credit, right?
A: It is admirable that you want to help your brother, but co-signing for a loan will absolutely have an effect on your credit. Even though you and your brother know that the obligation is his, on paper you are equally respon- sible. The auto loan will show up on your credit report, and if his circumstances change and he’s unable to pay, you will be on the hook. It sounds like your brother is on solid footing with a new job that’s conveniently close. In- stead of offering to co-sign, which is a long and substan- tial commitment, you could offer to give him rides to the grocery store once a week and help with errands until he’s able to secure financing on his own.
Q: I signed up for a new credit card because it had a great balance transfer rate. Now, I’ve been getting a ton of pre-approval notices and offers in the mail? Are all of these card companies pulling my credit, and if so, does that hurt my score?
A: These offers are the result of “soft pulls” that lend- ers can do without impacting your credit. They don’t have any bearing on your score and they don’t show up as in- quiries on your credit report.
These are just a few of the common credit questions that we hear. If you have personal credit questions, please
check with a professional before taking any action. Your credit score is an asset that deserves your attention and protection. d
Gwendolyn M. Hawkins is a Certified Credit Union Financial Counselor with more than 20 years of experience in the credit union industry. Her services are complimentary to members of Chicago Patrolmen’s Federal Credit Union
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the financing, which may strengthen your negotiating po- sition on other parts of the transaction.
How do dealerships make money offering zero-per- cent financing?
The answer is two-fold: volume and selectivity.
Zero-percent financing gets people on the lot and en- courages them to think about buying a specific brand of car. The manufacturer and the dealer both make money on each car sold, so the zero-percent financing trades some profit per car in the hopes that they’ll make up for it in number of cars sold.
Not everyone who comes to a zero-percent financing event will qualify for that rate. Because most people who get to the point of discussing financing have decided to purchase a car, they’ll settle for a non-zero rate when it’s presented to them. d
Matt Wiseman is the Director of Marketing at ISPFCU – Your Law Enforcement Credit Union. Join ISPFCU today at www. ispfcu.org. Matt can be reached by email at mwiseman@ispfcu. org or by phone at 800-255-0886.
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