Today we’re going to address an issue that is plaguing our country. This issue is on the topic of co-signing. Is it a good idea and smart decision to co-sign for someone else who is applying for a loan? Have you ever asked anyone else to co-sign for you?
This can affect anyone old or young, rich or poor, etc. Co-signing is simply someone who puts their name on the dotted line backing someone else’s promise to pay with their own money and credit. On the surface, it usually doesn’t seem like a big deal because the people involved know each other very well. They most likely have a very tight-knit relationship for this conversation to even come up. Not always the case, but most of the time. Don’t let that be a trap to get in to something you potentially should shy away from.
Being a co-signer is actually a very important comittment. For instance, if any payments ever become late from the original borrower, those late payments also impact the co-signer! The co-signer’s credit will take the hit and go right along for the ride with the borrower. The co-signer is deemed equally liable for the payments being made to the creditor.
So here’s the million dollar question, what can you do to protect yourself in the event you are a co-signer? Or better yet, what should your thought process be if someone asks you to co-sign? What kind of position are you putting someone else in by asking them to co-sign for you? Today’s video goes in-depth on what those next steps should be.
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