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Should I Co-Sign?
You should not co-sign for anyone. Protect yourself. Forget about being a co-signer on a loan application. In case you didn’t know: co-signed loans WILL go on YOUR credit report.
What does that mean to you?
If your friend or family member skips out on payments or is late on payments you will be dinged also! If they default on the note it will affect your credit score AND creditors will come after you too. PLUS, you will not be very happy with the person or people that got you into this mess.
When friends or family ask me to co-sign a loan I say no. The only time I might consider co-signing is if the person secured the loan with me. Basically, if the loan were for $10,000 I would expect $10,000 in MY bank with an auto-pay set up before I sign anything. Going this route I am protected as is my credit. It is a hardline but I think if someone really needs to build their credit using my good name and score they will comply. Otherwise, not a chance.
Do any of you have a co-sign story to share…good or bad?
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