should i co-sign a loan for a friend or relative ?

posted by askmrcredit on (6 years, 9 months ago)

Only you can decide the answer to this question. However, you should clearly understand the obligations of a co-signer—you are as responsible for making the payments as the person who actually takes out the loan. This is true even if you are not receiving the billing statements. If payments are not made on time, it will have a negative effect on your credit history.

In some states, creditors are prohibited from reporting delinquent payments on the co-signer's credit report unless the co-signer is notified that the payment is overdue.

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