Question

Amber asked her dad to co-sign her loan. If she makes a late payment, what may happen? A late notice will be sent to her dad. It may be reported on her dad’s credit report. Amber’s credit score will decrease to 0. Her dad will not be able to obtain a loan at that bank.

Answer 1

It will be reported on her fathers credit score

Answer 2

Answer:

It may be reported on her dad’s credit report.

Explanation:

Co-signing a loan means that a person commits to pay the loan if the debtor doesn't do it. When the primary borrower makes a late payment, it can affect the credit score of the co-signer because that person is also responsible to ensure that the payments are made and because of this, people have to think seriously before cosigning a loan because if the borrower don't pay they can end with a bad credit or even having to pay back the loan. According to this, if Amber makes a late payment, it may be reported on her dad's credit report.