What are the risks and benefits of co-signing a loan?

[NatanBricks]

Signing a loan together can help someone else qualify for a loan they can’t get on their own. However, it also comes with risks and responsibilities. Knowing the pros and cons of co-signing a loan can help you make an informed decision.

[libertjohann]

Signing up for a loan as a guarantor can be a great way to help a person in need, like a friend or family member, qualify for a loan they might not be able to get on their own. However, it is important to understand the risks and responsibilities associated with co-signing. Co-signing means that you are legally responsible for the loan, and if the borrower fails to make payments, you will be liable for national debt relief complaints. Before agreeing to co-sign, make sure you agree with the potential risks and have a plan in place for how to handle the loan if the borrower fails to pay.