Co-Signing - How Co-Signing Works

Co-signing happens when somebody promises to back up a loan for somebody else. Somebody may ask you if you’ll co-sign a loan for them. They’re asking you to become legally liable to pay off a debt if they are unable to pay it off themselves. This page discusses co-signing from a co-signer’s perspective.

Co-signing happens when somebody promises to back up 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. This page discusses co-signing from a borrower’s perspective.

Co-signing happens when somebody promises to repay a loan if somebody else can't make the payments. This page discusses co-signing from a borrower's perspective and the co-signer's perspective.

When you need money and you can’t get anybody to vouch for you, you’ll have to get a loan without a cosigner. This means you’re the only one responsible for the loan, and you have to convince the bank you’re good for the money. Figure out what lenders want so you can get loans without cosigners.

Question: I’m applying for a loan but my credit is not great. The bank tells me I need a cosigner. What do I do? Answer: There are two ways you can approach this: find a cosigner, or work on getting a loan on your own -- without any cosigner.

Does co-signing for somebody else affect your credit? Find out what to expect.

If you want to help a friend or family member in need, you can co-sign a loan for them. Unfortunately, you're taking a risk with your credit. Find out what other readers wish they knew before co-signing. Share your story of a co-signing gone bad.