What is a Cosigner?
Have you been asked to help a friend get the loan that they need? Well if you sign the papers as a cosigner then what you are doing is saying that if they default on the loan that you will cover them. For some this is the only way that they can get the funding that they need, but if they do not live up to their end of the loan then the co-signer can get stuck making the payments. This can cause a great deal of frustration because it could mean an extra bill that you do not have the funds to pay. Should you decide that as the cosigner you do not wish to pay, not only can it cause some legal problems, but it can in fact harm your credit. A term that can also be associated with a cosigner on a loan is a co borrower. It is important to know the obligations of a cosigner because it can be very frustrating if you are helping someone out and then you are stuck with the loan if they default or no longer are able to pay.
