A cosigner is a person who agrees to make
payments in the event you can’t meet your obligations.
Sometimes, having a cosigner can help you obtain the loan
or credit you want with attractive terms and rates. The most
common reason lenders ask for a cosigner is when the person
making application for the loan has little credit or a poor
credit rating.
Remember to be cautious if someone asks you to cosign. If
that person is late, you’ll get the calls asking for
payment. If he or she defaults
on the loan and is unable to pay, you’ll be asked to
take over those payments. And late
payments or a default can impact your credit rating as
well.
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