To co-sign or not?

Question

Im really thinking of co-signing but this info had me thinking thrice

http://www.newhorizon.org/Info/to-cosign-or-not-to-cosign.htm

could the be right?do you have other helpful resources to share wth me?

help

Answer 1

I agree with the article...You should almost never co-sign a loan unless you're more or less willing to take over the loan yourself.

There are special situations where co-signing makes sense but those should be slam-dunk situations that you recognize immediately as okay...If in doubt don't co-sign.

Answer 2

I have cosigned for my daughter and that is the ONLY person I'd ever cosign for.

I do not recommend that anyone ever cosign a loan.

#1 - the lender is asking for a cosigner becuase there is something their expertise finds that says (based on experience) this person is a credit risk. Lenders are the experts and if they think they won't pay - how could you know best?

#2 - I am a lender / collector and everyday I talk to and collect from people that cosigned a loan for someone they KNEW would pay.

#3 - Absolutely - it will all go against your credit if not handled properly.

#4 - it can certainly ruin otherwise good relationships.

#5 - even as a lender - I tell my customers that if you do not want to cosign - I will tell the appliciant that you did not qualift. That way the applicant will think you did everything you could to sign. I will always protect potential cosigners any way I can. If they still want to cosign - when I am collecting from them - I remind them of this conversation we had.

#6 - unlike Nike ads state - JUST DON'T DO IT.

Answer 3

That's the whole point of the landlord/bank getting a co-signer. You are signing responsibility b/c the person signing the lease doesn't have enough assets or good enough credit to do it on their own. That means that if the person you are signing for bails on their responsibility, you become responsible for those payments (and it hurts YOUR credit if you don't pay). It's a pretty big responsibility, I wouldn't think you'd want to do it lightly. You have to KNOW that person can pay the bill, but won't look like it on paper... for example, a young person getting a lease might be very capable of paying the rent, but it wouldn't look that way to a management co/ landlord, so their parents will co-sign for them to say "if my kids can't pay his rent, you can come to me to collect"

Answer 4

If you are going to co-sign on anything, make sure you have some sort of legal bond with that person (family members, namely). If the person does not pay, you will be liable for the full balance.
Be CAREFUL cosigning for friends, significant others, etc, because sometimes if the relationsip goes bad, they will stop paying just to screw you.

Answer 5

risky waters.... Co-Signing is a hug dedication no depend if that's a automobile, condominium apartment, or a clean Ipod to your lady buddy. that's the place I draw the line...No Co-Signing for even family contributors memebers... in the event that they FAIL to pay even though you co-signed, then you definately wilk be in charge for that debt, which you co-signed for. So in case you co-sign to your appropriate buddy (enable's say), and he or she takes to the air, cuz she has no funds to pay lease one month, then the owner, or the owner of the construction will come when you for the stability.. in case you do not pay... then you definately can kiss your credit status solid-byr for the subsequent 7 years... So co-signing when you consider which you're youthful and stupid, and decide to be self sustaining... is the incorrect thank you to do it...

Answer 6

Never co-sign. If the person you are co-signing for doesn't pay then you are responsible for the bill. Ihad my experience about being a co-signer and I regret it.

Answer 7

Do not co-sign for anyone. Yes, that article is correct. Your credit can be ruined by the person you're co-signing for.

Answer 8

Read your answers. DO NOT EVER CO-SIGN unless you plan to pay the full amount. Co-signers are equally responsible for the debt.

Answer 9

I would not do it for anyone. I have in the past for one of my children, and it was a nightmare making sure they paid the payment every month (if they didn't it would go on my credit). I had to come up with the money myself several times because they were late with the payment. NIGHTMARE.

Answer 10

Don't you dare co-sing for any body,your just asking for trouble.