If you say no to cosigning, the person who needs help may feel that you’re the meanest person on the face of the earth. That’s okay - they’re entitled to their opinion. While I definitely understand how cosigning a loan can help someone with no credit history, I feel that the risks outweigh the benefits. Can’t decide whether to put your name on the dotted line? Here are seven reasons to say no to cosigning.
1. 100% Your Debt
Sign your name to another person’s loan application and you automatically inherit this debt. Even if you never make a loan payment, this debt is forever attached to your name, plus it’ll appear on your credit report. And if the primary signer stops paying, the lender will hound you for a payment. Do you need another reason to say no to cosigning?