Why You Should Never Co-Sign a Loan (And What to Do Instead)

本站添加: 2026-05-20

Co-signing a loan is a significant financial risk because the debt immediately appears on your credit report, and every missed or late payment by the primary borrower will negatively impact your credit score; additionally, if the borrower defaults, you become legally responsible for the entire balance, which can derail your mortgage approval, car loan, and business credit. Instead of co-signing, it is better to help the person build their own credit profile through proper financial management.