When you co s-sign a loan you essentially promise the lender that you will make the payments yourself in the event that the primary borrower does not.
If u must
If you really want to co-sign for someone, don’t commit to more than you can afford to lose.
Ask Yourself This Question First
You really need to know who you’re cosigning for son, daughter, or grandchild that is gainfully employed, very responsible, honors their obligations but just lacks the established credit necessary to qualify on their own?
Might be a perk
Anna Serio, a loans writer at Finder.com is not completely against co-signing, but she advises borrowers to proceed with caution and to only sign for folks that they can absolutely vouch for
Co-signing a loan comes with more financial risk than benefit to the cosigner.
Serio explains. Co-signing a loan means that it will show up on your credit report on your debt.
If the borrower makes a payment on time, it could help build your credit history.
But if they miss a payment, your credit score will suffer unless you make the payment yourself.
That’s why it’s good to save co-signing for someone that has demonstrated financial responsibility in the past.