October 2, 2006 3:54 PM
Is Co-Signing A Good Idea?
According to Bankrate, co-signing is usually not a good idea. Oftentimes, it is the co-signer who will finally pay the bill.
From Bankrate:
Co-signing has been known to destroy relationships and wreak financial havoc. In fact, most financial experts, such as credit counselors and financial planners, will tell you that co-signing is a bad idea.
But, if you insist, here are some tips that can help you wisely safeguard your credit if you choose to co-sign for a loan.
Proceed with caution
Co-signing means you are telling the lender that you are equally responsible for the loan, and if the borrower fails to pay, YOU are guaranteeing that payment. Think about that. You're not just helping someone get a loan, you're promising to pay the debt yourself if the borrower does not.
If the lender decides to sue and wins, it can go after your wages and your property.
That's important. Studies have shown that as many as three out of four co-signers ultimately end up making payments on the loan.
12/31/06 | What Is Bad Credit Unsecured Loan?
12/21/06 | Making Sense of Personal Loans (Secured and Unsecured)
12/11/06 | How to Take Advantage of Secured Personal Loans
12/08/06 | How To Get A Cheap Unsecured Loan in UK
11/30/06 | How Small Personal Loans Can Help You To Repair Your Credit
10/14/06 | On Microinsurance
10/08/06 | Bankrate Reviews Person-To-Person Lending Marketplace Prosper.com
10/03/06 | Secured Personal Loans Still Easy After Bankruptcy
09/21/06 | What Is Payment Protection Insurance (PPI)?
08/23/06 | Secured Loan ABC
08/15/06 | Why Unsecured Loan?
08/15/06 | Why You Might Need An Unsecured Bank Loan
08/15/06 | Pros and Cons of Bank Lending