Cosigning loans for friends or relatives can jeopardize your credit standing. You may trust them implicitly, but if they were truly creditworthy you probably wouldn’t be called on to cosign. Consider these details:
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If payments are ever late, your credit will be affected. Payments may be very late before you are made aware of the default.
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The loan appears on your credit report and is figured into your scoring. The new debt-to-income ratio will affect terms and rates on any loans you may need to apply for until the cosigned loan is paid in full.
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You are liable for the loan if it goes unpaid.
Unless you can afford to lose the amount of the loan, or take a chance on finding yourself needing credit repair, it is a good rule of thumb to never be cosigning loans.
You may also find these pages of interest:
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How to Prevent Identity Theft – How to avoid being one of the 40,000 consumers each year who are victums of this serious fraud.
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Assigning Your Rights – Keep these thoughts in mind if you are asked to assign your rights to others.
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Credit Repair For Identity Theft Victims – How to recover your good credit when it has been hurt by identity theft.
