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Yes you can cosign if you do not have a driver's license, as long as the other signer has a valid license. Typically you just need to sign a "do not drive letter" stating that you do not plan on driving the car.
 

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Discussion Starter · #5 ·
With BMWFS does having a cosigner with excellent credit help a person with terrible credit? The cosigner never financed a car before but has a house mortgage. If the person does get approved with the cosigner, does it also help his credit?

This is related to what I posted over at another BMW forum. I was planning on cosigning for someone but decided against it. Someone else will be cosigning.
 
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With BMWFS does having a cosigner with excellent credit help a person with terrible credit? The cosigner never financed a car before but has a house mortgage. If the person does get approved with the cosigner, does it also help his credit?

This is related to what I posted over at another BMW forum. I was planning on cosigning for someone but decided against it. Someone else will be cosigning.
If someone has very good credit and they cosign for someone with bad credit it does help the chances of the person with bad credit getting approved for the loan. If the person does end up getting approved then it will either help or hurt both peoples credit depending on if the future payments are made on time or not.
 

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If someone has very good credit and they cosign for someone with bad credit it does help the chances of the person with bad credit getting approved for the loan. If the person does end up getting approved then it will either help or hurt both peoples credit depending on if the future payments are made on time or not.
I don't see how the cosigner's credit score would go up. His/her credit-to-debt ratio, which is a factor in determining the FICO, would inevitably be impacted negatively.
 

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I don't see how the cosigner's credit score would go up. His/her credit-to-debt ratio, which is a factor in determining the FICO, would inevitably be impacted negatively.
There are many factors involved in FICO scoring... positive/negative trade lines, recent activity (including recent inquiries), time in file, types of trade lines (mtg and auto bank lines help assuming positive pay history, consumer finance company accounts hurt regardless of pay history) and utilization, just to name a few. Many, many factors are involved in FICO scoring! Positive credit (unless at a consumer finance co.) seldom if ever hurts a consumer's FICO score though.
 

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^ what he said.

There might be a slight decline due to another hard inquiry, but it should start to go up again due to the variety of tradelines assuming it is always paid on time.
 
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