What is Co-Signing?:
Co-signing happens when somebody promises to pay a loan for somebody else. The bank won't offer the loan to a borrower unless she qualifies for the loan under a variety of criteria. If the borrower can't qualify, a co-signer may help her qualify.
What Should I Know When Finding a Co-Signer?:
Finding a co-signer can be difficult. Using a co-signer is a major responsibility. Make sure you know who to ask and what to do once you get the loan.
What Should I Know Before Co-Signing a Loan:
Co-signing a loan for somebody is risky. Your credit may suffer and you may have to repay the loan if things go bad. Familiarize yourself with the risks, the process, and how you can limit your risks.
