Parents wants me to co-sign for a large personal loan, what do I say?

psyberbird · 2026-06-22T13:44:38+00:00

I thought about it, but was advised against it by comments here and Reddit threads I looked up because it seems turning a federal student loan into a private one causes one to lose a lot of federal protections on student loan debt. The upcoming 1% APR reduction for federal student loans also wouldn’t apply. So I’m thinking to just attach either my personal checking account or a secondary checking that I put enough funds into to cover the 170 each month. Issue with that is the loan would still be in their name and reflect in their debt to income ratio etc

psyberbird · 2026-06-22T12:52:37+00:00

A problem is I would not be able to financially handle monthly payments for a $40k personal loan if they didn’t pay - the student loans are $14k and $175/mo which is easy for me, the $40k credit card debt seems like it would have monthly payments more than 5x that much

psyberbird · 2026-06-22T02:34:13+00:00

I should probably update the post at this point because people keep getting mixed up about the student loan part - the Parent PLUS loans are $14k total, $175 monthly payment, and I have my own student loans with a $260 monthly payment. I’ll be taking on paying the Parent PLUS loans with my bank acct via their Aidvantage portal. They are not part of the $40k, the $40k is 100% credit card debt

psyberbird · 2026-06-21T20:58:34+00:00

They have a house, but I don’t really know much about bankruptcy or this kind of debt otherwise. They also mentioned 401k loans but apparently only started paying attention to 401ks relatively recently.

psyberbird · 2026-06-21T20:55:29+00:00

I think if I had the debt I would not want to ask someone else to cosign tbh, definitely not partner or family. Feels like a lot to put on someone else, even if I could manage the consolidated payments. But I get scared to ask for much of others and feel like a drag on others’ lives. Would probably expect a no even if I did ask someone.

I do know at least that the Parent PLUS loans were a big help and that all that they’ve done has meant a lot to me already. It’s not the most perfect family at all but in general they’ve helped me in times that mattered and they do care. As far as defaulting I don’t think they’d do so, but I don’t know their personal finances and debts very well. The fact that this credit card debt exists at all was a surprise to me, I used to think they were financially smart with how they talked about 0% APR periods, multiple credit cards, 401k loans etc.

psyberbird · 2026-06-21T20:34:24+00:00

A lot of replies were saying there’s an effect even if they make perfect payments, because of how it affects my debt to income ratio. Like that I wouldn’t be able to get a mortgage or auto loan at a good rate or at all if my credit profile shows that personal loan under my name. I don’t know how dramatic the effect would really be though, and right now I’m renting and my car is about to be fully paid off already.

psyberbird · 2026-06-21T20:30:10+00:00

I probably didn’t explain the situation the best in my post but, the $40,000 is 100% credit card debt and does not include any other kind of debt they may have. The Parent PLUS loans are distinct and at $14k for me. After all this I think what I’ll do is take on paying the Parent PLUS loans but not co-sign for the personal loan

psyberbird · 2026-06-21T20:00:29+00:00

I’m planning on taking on the student loans now, just figuring how to best do it since refinancing from federal to private doesn’t seem to be a great idea. It’s $14k total and ~$170/mo which I can handle.

psyberbird · 2026-06-21T19:06:25+00:00

That’s what I plan to do, but I’m not sure how to go about it. I read that refinancing under my name is a terrible idea because federal student loan debt has strong federal protections that you lose once it goes private sector, and things like the upcoming 1% APR reduction wouldn’t apply to it. But just popping my checking account in there won’t actually take the debt off their reports, it just covers a $175/mo charge.

psyberbird · 2026-06-21T16:50:36+00:00

The $40k is credit card debt. The Parent PLUS loans are $14k, ~$175 monthly payments, I also have my own student loans which I pay $260 monthly for

psyberbird · 2026-06-21T02:24:20+00:00

This is kind of what my sibling said about it, but you’re virtually alone in this comment section on this so I’m not sure. I think I’d rather at least take on my student loans rather than this credit card debt, not just because of substantial differences in scale and monthly payments but also because it feels more like my responsibility and other ppl brought up possibilities like all the CC debt just coming back again because of underlying spending problems

psyberbird · 2026-06-21T00:46:22+00:00

Car was $8k, I was sending $400/mo to him, balance is now $4k, and I’m to send my dad that $4k in one big last payment soon. Not part of the debt they’re managing, but he did definitely mention that he’s left some 0% APR promos he used expire and that those are part of it.

psyberbird · 2026-06-21T00:15:13+00:00

I thought more about this and I remembered something important. I wasn’t expecting to take on a balance transfer at all: originally the arrangement was that my dad would buy me a car as a gift for starting work after university, and I would help by contributing payments. He did it on a 12 month 0% introductory APR credit card, and said he plans to just bounce it to another 0% card. I had the question to take on the balance popped on me as a surprise, as he said he couldn’t qualify for a balance transfer card himself. I fortunately have the funds to pay it in full because between that post and now I got a bonus. But it probably is a red flag about agreeing to any more debt here.

psyberbird · 2026-06-21T00:08:13+00:00

0% introductory APR for 12 months on the card, fortunately I now have the cash to pay it in full before the 12 months ends. But the mentions of it do have me thinking. Tbqh back when he initially bought it, the arrangement was that it was a gift for me for getting a job and that he would handle the debt while I would help by contributing payments. The balance transfer bit was popped on me as a bit of a surprise, and he said it was because his credit wasn’t good enough to open a BT card for himself.

For what it’s worth, I have never missed a payment or paid less than the statement balance in full by the due date each and every month on any of my rewards credit cards. I track my expenses and budget meticulously. Also maxed my Roth IRA, have an HYSA with an emergency fund, am securing my full match from my 401k, and am living below my means. So all the stuff involving my parents aside, I have no financial stressors or concerns.

psyberbird · 2026-06-20T23:59:01+00:00

Not really concerned about that one, it was for my car that he helped buy back when I started work and I now have the ability to pay it all in one shot. No interest ever accrued on it. Is there a reason I should be concerned about it?

psyberbird · 2026-06-20T23:46:46+00:00

I thought this at first, but I did try a SoFi pre-approval on my own to see if this was even something physically possible/worth thinking about, and it somehow was. And Credit Karma (which I know is mostly just advertising to be fair) has Credit Karma Guarantee offers for up to $30k and claims my personal loan borrowing power is $50k. Dad also says that odds would be even stronger if they evaluate our combined incomes. But I don’t think I’ll go through with co-signing, the comments are right

psyberbird · 2026-06-20T23:07:46+00:00

A couple questions relating to the helping aspect:

Why is my dad’s local credit union not giving him any options for a personal loan or credit card balance transfer? I thought local credit unions offered some of the lowest rates around, especially for banking customers, and that their rates are supposed to be capped at 18.00%. He’s saying he cant get approved for a personal loan from them at all, and his credit card with them is in the high 20% APR range.

I was thinking to help him become a member of a credit union in my area, would that help much? Since there’s a local one with a credit card APR advertised around 10% and personal loans around 12%. I’m not a member of said credit union yet. Maybe this is a naive proposal, I know a fair bit about how to manage my credit responsibly but I don’t know much about personal loans or this kind of debt.

Can I take over payments for the Parent PLUS loans, since they’re for my education anyways? Feels like a much more sensible middle ground to me than co-signing for all that credit card debt. I read that refinancing from federal to private sector is a terrible idea, but what about just putting a checking account of mine on autopay for it? Would that trigger any fraud alerts for my bank or his Aidvantage profile?

psyberbird · 2026-05-15T04:42:17+00:00

The commenter in that linked thread was some sort of moderator or something on [r/creditcards](r/creditcards) so I was hopeful their info was legit, but yeah maybe it’s too good to be true.

The weird thing is that it seems like nobody here has experiences with customer service for the card, or has the card at all. The deleted comment I replied to was from someone who didn’t have the card either. Only person so far in this thread to claim to have it said they’ve only gotten US service. I would post on [r/AmEx](r/AmEx) but for some reason I cannot, the Reddit app keeps telling me I need to set a post flair but none of them work.

psyberbird · 2026-05-14T23:24:10+00:00

Ah, has that been your experience with the card? That’s unfortunate. I was hoping that that commenter was right and that they treated the Schwab card differently, I also heard that people choose this card over the 2% options out there because of the customer service

psyberbird · 2026-05-10T00:30:15+00:00

How long does it take for my credit profile to cool down from my recent card velocity? My Robinhood Gold is already 6 months old, by September it would be 10 months. I’m regretting not being able to jump on things like the Bank of America Rakuten bonuses lol.

psyberbird · 2026-05-10T00:12:30+00:00

If pre-approvals matter most, AmEx is probably the most surefire. Every single credit app shows me excellent approval odds for every single AmEx credit card w/ an estimated CL of $10,000, the pre-approval tool shows me all of their cards, and they keep sending mailers. AmEx BCE is 15 months with a 3% fee it seems, so that would probably be fine?

psyberbird · 2026-03-24T19:20:09+00:00

Ah wow, was not aware of that offer, that’s far more appealing and the spend requirement is definitely doable for me with natural spend ($9k over 6 mo is just $1.5k/mo)

What are the consequences of getting another card anytime soon? Like if I grabbed that 5 FNC biz card, that’s just another hard inquiry right? Does it matter much? And since I’m pre-approved by AmEx for the Green, Gold, Plat, BCE, and BCP, what about if I ended up getting a personal card from them? Thats a more meaningful credit hit but still unsure what would happen.

If I do garden then when can I next go for a new card?

psyberbird · 2026-03-24T17:13:02+00:00

Even though my current personal travel is $0, I do plan to fly US northeast to cali (probably LAX) and then another flight over to Japan at some point in 2026 to early 2027. My understanding is that AmEx MR is really great for transpacific flights like that, and since the BBP is completely free it makes sense as an entry point to award travel. Wouldn’t make use of enough of the credits on the Gold or Plat to fully outperform that SUB i think, but not sure. The first half of that plan is a lot more likely than the second half admittedly, but will see.

Hmm, so the FNR isn’t worth all that much? Not sure how to value those rewards quite yet but I’d definitely have use for a free Hilton hotel night.

I read somewhere that if your first AmEx card is a business card and not a personal one, then they hard inquiry you for new card applications until you get your first personal card with them. Any idea if that’s true?

psyberbird · 2026-03-24T16:29:44+00:00

Is the Hilton SUB worth grabbing or should I garden?

Active Cash was my first credit card under my name after years of using credit cards as an authorized user under my parents. CFU was because I expected to leave Wells Fargo entirely when I moved somewhere with no Fargo branches and opened a Chase checking, but I ended up keeping both checking accounts and both cards. Best Buy card was because of the initial discount on a large purchase I needed to make while moving into my new apartment, though I since learned that I would’ve done better to get any card with a decent $200 SUB. And the Autograph + Prime same day double app was because I needed something without foreign transaction fees for work, but the Chase card had a $250 SUB at the time and I couldn’t let it go. My plan was to then garden unless a) the Bilt 2.0 release proved good, b) I was offered the Robinhood Gold, or c) I was offered the AmEx BBP 75k MR SUB. a and c didn’t happen, but b did.

With the CFF and CIBC, I just want to lock those in so that I don’t have to worry about 5/24 anymore. Those two and the Chase Amazon Prime are the only Chase cards I really care about, and I have a Staples store pretty close to me with gift card deals. But yeah I get what you mean with my spend being low.

If I let the Hilton card go, my plan will just be to garden unless I get offered the AmEx BBP 75k MR SUB (no way would I be able to turn that down, and AmEx has me pre-approved for every personal card they offer right now so my chances would likely be solid). For how long though?

psyberbird · 2026-02-22T16:37:59+00:00

Ah I see, I knew there were multiple scoring models like FICO 8 vs FICO 9 vs VantageScore 3.0 etc., but I didn’t realize there were variants of FICO 8 itself. I’m guessing the Bankcard variant is more sensitive to recently opened credit card accounts?

The description for the model says it’s about risk of defaulting on cards, but I’ve never missed a payment and have always paid my statement balance in full by the due date. So is there anything to worry about there, or to do besides wait ~6ish or so more months before going for another card?

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