2007-10-21 05:05:13 · 6 answers · asked by bluh 2 in Business & Finance ➔ Corporations
A co-signer can ask for compensation for the risk they are taking. They are putting their good credit and financial stability on the line. They will become responsible for the loan, or lease, or debt document, should the primary borrower default, or stop making payments.
In a way, they are becoming a partner with the primary with regards to the debt. In family situations, a co-signer may not ask for money, or compensation, but they could if they wanted to. In corporate situations, it is a type of business agreement and the co-signer often is paid some amount, or given an interest in future profit.
2007-10-22 01:12:26 · answer #1 · answered by AngeloElectro 6 · 0⤊ 0⤋
The co-signer is using their credit rating and money as a guarantee that the person actually receiving the loan or service will pay if the person fails to meet the required obligation set forth in the contract.
The co-signer has a great risk at losing his own rating and funds should the person default on the agreement. This is the main reason people do not jump at helping friends or relatives. It's hard to recover from this type of set back.
2007-10-21 05:23:59 · answer #2 · answered by Sandie B 5 · 1⤊ 0⤋
Co signer is some one with good credit who agrees to take on the financial responsibility of the debit if the person contracting defaults. Almost always has to be a relative. Allowed is up to the person who wants to rent.
2016-03-13 10:04:11 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The co-signer is a person who agrees to accept the responsibility for a debt if the borrower fails to repay .
They do Not get compensation , but they often get burned when the person who got the $$$$ flakes on the repayment .
It is a thankless job that many people are smart enough to Refuse !
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2007-10-21 05:09:59 · answer #4 · answered by kate 7 · 0⤊ 1⤋
No compensation. A co-signer is stuck with the bill if who ever they co-signed for defaults.
2007-10-21 05:09:13 · answer #5 · answered by Classy Granny 7 · 0⤊ 1⤋
Responsibilities Of A Cosigner
2016-11-01 07:17:38 · answer #6 · answered by ? 4 · 0⤊ 0⤋