Does a Cosigner Get Credit When You Cosign?

Cosigning directly ties your credit to the loan, for better or worse.

A cosigned account usually appears on both your and the borrower's credit reports, so every payment, on time or late, shows up and affects scores. Payment history is the biggest factor, about 35%, so timely payments can help and missed payments can severely hurt. A cosigned loan also changes your new credit and average account age, alters your credit mix, and if the account is revolving it affects utilization; installment loans do not change utilization but they do increase your debt-to-income ratio, which lenders use when underwriting new credit. Applying with a borrower can trigger a hard inquiry on your report. Serious delinquencies and other derogatory marks can remain for about seven years. Accurate tradelines that correctly show the cosigned account generally cannot be removed just because you regret cosigning. For an authoritative breakdown of scoring factors see myFICO's explanation of credit score components and for consumer-focused rules and tips see the CFPB's guidance on cosigning and related credit questions. If you want a quick risk snapshot, consider a neutral credit-report review.

Impacts at a glance:

• Payment history: missed payments hit both scores, on-time payments may help.
• Credit age/new credit: shortens average age, can lower score.
• Credit mix: adds an installment tradeline, sometimes beneficial.
• Utilization: affects revolving accounts only, not installment loans.
• DTI and underwriting: raises DTI, can limit future loan approvals.
• Inquiries and derogatories: hard pulls at application; serious negatives stay ~7 years.

Your cosigned account shows up on both names' credit reports once the lender furnishes the account to the bureaus, usually after account opening, the first statement, or disbursement.

The most common timing is 30–45 days after that initial furnish, though mortgages often report after the first payment and some private student loans report at disbursement; exact timing varies by lender and loan type and is spelled out in the promissory note or Truth in Lending disclosure. To verify appearance and accuracy, pull all three credit files through requesting your free credit reports and compare account name, balance, payment history, and account status. If reporting seems wrong or delayed, first contact the lender, then use the Consumer Financial Protection Bureau resources at CFPB guidance on loan reporting and disputes to dispute errors and learn your rights. Regularly checking the reports gives early warning of missed payments that will affect both you and the borrower, so act fast if something looks off.

Your cosigned account shows up on credit files when the lender reports it, but the timeline you see depends on three separate systems working together.

• Furnisher cadence: lenders typically send account data to credit bureaus once a month, often on or after the account statement date.
• Bureau posting: bureaus ingest and post that data, usually within days and sometimes nightly, so updates can appear faster at one bureau than another.
• Score refresh: scoring engines recalculate whenever new data posts, which can change your score immediately after the bureau posts the update.
• Edge cases: some lenders report by due date, others correct mid-cycle; disputes or reporting errors add extra lag.

Expect most changes to appear across all bureaus within 30 to 60 days. Set real-time alerts on your credit profiles and push notifications with the lender so you catch late payments or balance shifts fast. If you need to learn how each bureau handles updates, see the Experian update policies and timing and the TransUnion's credit report update process. Taking those steps helps you protect your score and respond quickly if the borrower misses payments.

A cosigned loan's missed payments can hit your credit as if you borrowed the money yourself, because the account appears on both credit reports.

Late reporting follows a ladder: 30, 60, 90, 120+ days, then charge-off and collections; each step is typically reported to bureaus and can remain up to seven years from the first delinquency. Lenders and scoring models treat 30-day delinquencies as mild but meaningful, 60–90 days as moderate to severe, and 120+ or charge-off as severe negative events. Any single reported late payment on the cosigned account will show on the cosigner's file the same way it shows on the borrower's file.

Consequences go beyond score drops. Repossession or foreclosure can follow missed secured payments after acceleration. Accounts in collections add collection balances and collection fees, which further lower scores and stay visible for years. Late payments also trigger late fees, higher interest through acceleration clauses, and harder approval odds for new credit for both parties.

Recovery is possible but slow. Conservative score-drop ranges: expect ~30–100 points for early delinquencies and 100+ for charge-offs or public actions, depending on prior credit. Pay to bring the account current, get written confirmation, and ask the lender to report a 'paid' status or removal. If reporting is inaccurate, use CFPB guidance on late payments to dispute. Over 12–36 months of on-time payments, most scores rebound; severe marks may take 5–7 years to fully fade.

Yes - cosigning can add positive history to your credit only when the lender reports the account on your credit file and the borrower makes on-time payments. If the tradeline posts to your report at least one timely payment, you gain benefits: improved payment history, greater account age, and better credit mix, but you also inherit full liability for late payments and defaults, so the risk often outweighs using cosigning as a deliberate credit-building strategy. Verify reporting before you sign, prefer loans with autopay and formal cosigner-release options, and treat the arrangement as a financial guarantee rather than a credit shortcut. See the CFPB explanation of cosigning requirements and risks for federal guidance and lender disclosure expectations.

Practical checklist before you cosign:

• Confirm reporting, ask the lender which bureaus they report to and get it in writing.
• Autopay, choose accounts with automatic payments to protect the payment record.
• Release terms, prefer loans that allow cosigner removal after borrower meets criteria.
• All three bureaus, aim for tradelines reported to Experian, TransUnion, and Equifax to maximize score impact.

Mortgage example:

• Case: cosigner age 50, starting score 760, DTI 28%.
• Inquiry + new-account effect: single mortgage inquiry (-2 to -6 points), tradeline reported (+/-1–3 recovery in 6–12 months).
• Loan math: $300,000, 30-year, borrower pays $1,350/mo; cosigner's presence may lower the borrower's rate by ~0.25–0.75 percentage points.
• 30-day late model: a 30-day late can drop cosigner score ~60–110 points if previously pristine; on 760 that could fall to ~650–700.
• Disclaimer: lender policies and credit models vary. What to monitor: monthly status, payment posting dates, and credit reports for the mortgage tradeline. (If unsure, request a neutral report review.)

Auto example:

• Case: cosigner age 35, starting score 690, DTI 35%.
• Inquiry + new-account effect: inquiry (-3 to -7 points), new auto tradeline initially lowers rolling-age of accounts causing another ~2–10 point shift.
• Loan math: $25,000, 60 months, expected payment $475/mo; cosigner often cuts APR by ~0.5–2 points depending on credit bands.
• 30-day late model: one 30-day late can drop score ~40–90 points from 690, increasing insurance or future rates.
• Disclaimer: shorter terms magnify payment impact. What to monitor: lender account portal, auto lender reporting, and any collections activity. (Neutral report review advised if reporting looks wrong.)

Student loan example:

• Case: cosigner age 45, starting score 710, DTI 22%.
• Inquiry + new-account effect: single inquiry (-2 to -5), federal vs private reporting differs, private loans show as installment tradeline.
• Loan math: $30,000 private, 10 years, expected payment $325/mo; cosigner can reduce APR by ~0.5–1.5 points.
• 30-day late model: a 30-day late may drop score ~50–100 points and stay impactful for months.
• Disclaimer: federal loans may not require cosigner; private rules vary. What to monitor: student-loan balance, deferment status, and monthly reporting accuracy. (For basics see CFPB loan basics and try simulations at myFICO score simulators.)

Cosigning can change your credit overnight, so do five exact checks before you sign.

Know what you risk and why each step matters. Pulling reports shows current scores and hidden tradelines. Written lender rules tell you if and when you can be released. Testing worst-case payments protects your long-term DTI and credit utilization. If you want a quick second opinion, book an independent credit-review call with a trusted advisor.

Checklist:

1. Pull all three reports and a score snapshot from free annual credit reports, then review for surprises.
2. Get the lender's cosigner reporting policy and exact cosigner release criteria in writing, including timing and required borrower history.
3. Stress-test affordability: recalc your debt-to-income assuming max interest, one missed payment, and the borrower's default.
4. Require shared account access, immediate autopay, and real-time delinquency alerts so you see missed payments before they hit your report.
5. Execute a signed side agreement covering reimbursement, timeline for repayment, and any collateral; see consumer guidance at CFPB consumer help.

You can protect your credit as a cosigner by actively monitoring the account, creating mechanical protections, and intervening fast if the borrower slips up.

• Get joint online access or have the borrower grant you transaction alerts so you see payments and balances in real time.
• Require the lender to send you duplicate statements by email or mail each month.
• Set autopay from the borrower's bank for the full payment, then add your backup autopay from your account if theirs fails.
• Ask the borrower for 15-day pre-due calendar alerts, so late payments can be caught before they report.
• Run quarterly three-bureau checks and watch the cosigned tradeline for incorrect reporting.
• Keep a refinance/release calendar, aiming for the lender's usual release window (typically after 12–36 on-time payments) and push for a cosigner release or borrower refinance when eligible.
• Escalate immediately on one missed payment: call the borrower, the lender, and document steps; file disputes quickly if reporting errors appear and learn the CFPB dispute process.

Note: credit freezes do not stop existing accounts from being reported, they only affect new credit applications.

You can be taken off as a cosigner, but it usually requires formal lender action or paying the debt, not simple requests or disputes.

A cosigned account stays on your credit until the lender removes you, the loan is refinanced, assumed, paid off, or closed; accurate accounts cannot be 'disputed off' a credit report. Private student loans often offer cosigner-release options, federal student loans rarely use cosigners, and endorsers have different rules. For official guidance see CFPB cosigner guidance page.

Common removal routes and typical requirements:

1. Cosigner release, lender option – usually 12 to 36 consecutive on-time payments, borrower credit check, formal application.
2. Refinance, borrower-only loan – borrower refinances in their name, new lender replaces original note.
3. Assumption or novation, mortgage/eligible auto – lender approval transfers loan and liability to borrower.
4. Payoff or sale – full payoff or sale of the collateral ends the obligation.
5. Close or convert credit card – issuer may close or convert account; closing can harm credit age and utilization.
6. Court or settlement, rare – legal agreement can remove liability but needs court paperwork and lender acceptance.

How to start:

Contact the lender, request their cosigner-removal policy and forms, get requirements in writing, then track payments and submit application when eligible. Expect credit checks on the borrower and 2–8 weeks for processing.

Risks and tips:

Monitor your credit reports and the shared account monthly; set autopay or borrower reminders to avoid late hits; keep records of all communications and approvals. If the lender refuses, suggest refinance or a buyout, and explore alternatives to cosigning in the future.

Start with lower-risk options that help someone build credit without putting your score on the line.

• Add as an authorized user, set a spending cap, monitor activity; pro: fast credit boost if issuer reports, con: dependent on primary user behavior, when to use: trusted family member.
• Credit-builder loan at a credit union or secured card, borrower controlled payments; pro: builds payment history, con: smaller limits, when to use: borrower needs to establish credit.
• Share-secured auto loan, lender uses your savings as collateral; pro: protects your credit and reduces risk, con: ties up funds, when to use: vehicle purchase with limited lender options.
• Larger down payment or co-saved collateral, reduces loan-to-value and lender risk; pro: lowers interest and chance of default, con: requires cash, when to use: you can contribute funds but not cosign.
• Smaller loan amount or shorter term, lowers exposure; pro: easier to approve without cosigner, con: higher monthly payments, when to use: affordability is reasonable.
• Income-driven or income-based repayment programs for student debt, borrower qualifies on own; pro: reduces need for cosigner, con: may require paperwork, when to use: student loans only.
• Community lending circles or peer-lending through nonprofits; pro: social underwriting and education, con: limited availability, when to use: building credit with community support.

For practical guides and vetted programs see CFPB credit-building resources and Mission Asset Fund programs.

Cosigning can and usually does affect your credit, because the account appears on your reports and your score and obligations move with it.

Does cosigning affect utilization?

Revolving balances the borrower uses count toward your utilization. Installment loans like auto or student loans do not change your credit utilization ratio.

Will removing myself erase history?

No, removal stops future reporting but positive history already on your report remains. Negative marks, including late payments, remain and typically age off in about seven years.

Can I freeze my credit and still cosign?

Yes, but you must temporarily lift the freeze for the lender to run the required hard inquiry. Plan the lift for the specific creditor and re-freeze afterward.

Will lenders count this in my DTI?

Often yes, underwriters may include the full monthly payment in your debt-to-income ratio. Some lenders exclude it if you can document 12 months of consistent, on-time payments by the borrower.

Can I get alerts if I'm not the primary?

Ask the lender to grant cosigner account access or to send duplicate statements. For consumer protections and dispute options, see CFPB guidance on credit reports and cosigned debt.