You are equally responsible for the balance of the loan if at any time your daughter doesn*t make her payments on time your credit will definitely be affected. Also it does affect your credit line showing up as a debt to income factor when a financial institution looks at another loan.
You need to be sure your daughter understands that what she does not only affects her building her credit but affects what happens to your credit rating as well.
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〉 Answered on Mar 19th, 2009 by Jessie L Thatcher, F&I and Sales Specialist at Reynolds and Reynolds Company (Retired)