What is a co-signer?
A co-signer is the person responsible for repaying a debt if the borrower defaults. In essence, a co-signer guarantees repayment of the loan. A creditor could suggest a co-signer for the primary borrower to help them obtain the loan if they have no credit history or the credit history does not meet the creditor’s criteria or if the income does not meet their income requirement. If you co-signed for someone else, you are legally liable for the repayment of that debt. If the primary borrower does not pay, you may have to pay up to the full amount of the debt, including late fees or collection cost, which increases the original loan amount. In addition, if the primary borrower makes late payments, not only will the creditor contact you — in most cases they will report this information on both credit files, which is why it’s important to only co-sign for someone you can trust to pay the bill on time. Co-signing affects your credit score, even if the primary borrower is making all the paym
