How Co-Signing Works

Credit is tough to get these days. Some people may need a little bit of help if their credit is not strong enough. Co-signing happens when somebody with good credit guarantees a loan for somebody else. If you apply for a loan and you don’t qualify, you may need a co-signer. This person’s strong credit or higher income may help you qualify for the loan you want. Likewise, somebody may ask you to co-sign a loan so that they qualify. Before you get into one of these situations, understand how co-signing works.

Suggested Reading:

• How to Find a Co-Signer
• Before You Co-Sign a Loan