Won’t You Be My Co-signer?
by Kevin Ree
To continue building up your credit and protecting your hard work, give serious thought if asked to co-sign a loan…for anyone.
You may look at the loan payments as the other person’s responsibility, but the bank (lender) will look it as your commitment. If that person misses a payment, both of your credit scores that are hit. BAM! If they continue missing payments, it’s both of you that the collections agencies contact. If they default on the loan, it’s the credit worthiness of you both that’s tarnished.
RED FLAG MOMENT: If the lender is requiring a co-signer, WHY? Maybe it’s bad credit, maybe it’s no credit… either way, just ask yourself if you’re willing to risk your credit, finances and possibly the relationship? The answer might be a hard pass.