Co-Sign A Loan: What You Need to Know

Co-signing a loan can be a great gift for a friend or relative who would not otherwise be able to secure a loan. But, it comes with very serious risks as well. Here’s what you need to know before you co-sign a loan.

Banks and other lenders consider those with bad or no credit history to be a risk and may not approve loans for cars, homes or other items unless someone with good credit history cosigns the loan.

If you’ve been asked to co-sign a loan for a friend or family member, you need to weigh the risk you are putting on yourself with the reward you are providing for those you care about. Before you sign that dotted line, be prepared for all “what if” scenarios that could occur.

Read More About: What You Need to Know About Co-Signing A Loan

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