7. Damage Remains on Your Credit for Seven Years

If the primary signer stops paying the loan completely, and you can’t pick up the slack, this default appears on your credit report. In the case of an auto loan or mortgage, this can trigger a repossession or foreclosure.

If this information is reported on your credit file, it remains for up to seven years.

Keep these things in mind when you're considering whether or not it's a good idea to cosign a loan for someone... has anyone ever asked you to cosign a loan? What decision did you make? How did you decide?

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