|
|
|
|
Read This BEFORE
You Co-Sign For A Loan
|
It happens every day of the year; a friend, who has had some problems
with their own credit, wants to buy a new car, or perhaps some furniture
for their apartment. The problem is that they don’t have the cash do
it, and because of their poor credit report, can’t get the approval
that they need. They approach their friend and ask if they would be
willing to co-sign the loan. “I only need your signature to get approved,”
they say. “You won’t have to do anything else!”
Wait!
Before you co-sign that loan, there are some things you should know.
In reality, it isn’t merely signing the loan application, but a serious
proposition. What’s more, if things went wrong and the friend couldn’t
keep up with the payments, guess who would be responsible for the loan
balance? That’s right—you.
If you are thinking about co-signing a loan for a friend or family member,
why not first read the following in order to understand what you’re
about to get into.
Risk
If someone is asking you to co-sign a loan that means that the professional
lender is not willing to take a risk on them. In other words, their
past credit behavior has been so bad that they lender doesn’t believe
they will pay back the loan. What makes you so sure they will?
Responsibility
By placing your signature in the co-signers spot, you are guaranteeing
that if your friend doesn’t make the payments, you will. Do you have
the finances to cover the loan if it came down to that? Do you really
need another car payment?
Credit Report
You’ve obviously worked hard to keep your credit report spotless, which
is why your friend wants it represented on his credit application, but
did you know that if your friend misses a payment or becomes delinquent
with his payments, that it could affect your credit report?
Collections
If the account does go into the collection process, it is possible that
the lender could bypass your friend (who they never believed would pay
the loan) and come after you first. This is true in most states, and
it would be important to find out where your own state stands on this
policy.
In addition, you should be aware that by co-sign on a loan for $10,000,
you may actually reduce the amount of credit you will be able to get
yourself because that loan will count toward your “total debt owed.”
If you do decide to co-sign for a loan, there are some steps that you
should take in order to protect yourself.
First, you should ask to be notified in writing if your friend misses
or is late with a payment. By knowing of any problems early on, it will
help you keep the potential damage to your own credit report from getting
out of control.
Next, you should also get copies of all loan documents and repay schedules.
Ask for a copy of everything that your friend gets in case there is
ever a dispute, you will know what legal rights you have.
Co-signing for a loan is serious business, and is something that you
should think long and hard about. Even if it’s your dearest friend who
is asking, you have to ask yourself if they defaulted on the loan, what
would that do to your friendship?
About The Author:
Peter Dobler is a veteran in the IT business. His passion for experimenting
with new internet marketing strategies leads him to explore new niche
markets.
Read more about his experience with credit and mortgages; visit
Credit
Score Information Directory
Other Credit And Real Estate Related Information
|
American Grant
Provider Directory
 The
Federal Government and Private Grant Foundations issue billions
of dollars in grant money to a variety of groups each year.
Grants are awarded to individuals each and every day from all
walks of life, with large and very small bank accounts, for
an ever-increasing array of purposes.
Grant programs are not Loans.
You decide how much you need. As long as the amount is lawful
and you meet the Foundations and Government Agencies Requirements,
the money is yours to keep and never needs to be repaid. This
grant money is non-taxable and interest-free!
Get more information
|
|
Do You Have
Bad Credit?
Don't give up!!
Our list of lenders and credit card
companies are willing to give you another shot. They realize
that good people can have bad credit.
Whether you have
had minor problems in the past or even bankruptcy, our lenders
are there to help you not only receive a loan, but also to re-establish
your credit.
Are you ready to
get your second chance?
Get more information
|
|
Mortgage Loan Tips
 "Excellent
for first time buyers, move-up buyers or refinancing. I cannot
recommend it highly enough - this should be required reading
for anyone who wants to get a loan."
M. Klinger, Real Estate Broker
Aventura, FL
Get more information
|
|
Credit Repair
- Erase Bad Credit Now!
 Are
you tired of Bad Credit? - High Interest Rates? Disapproved
Credit?
Use my experience today, and I will show you
how to get every negative item Removed from your Credit Reports
within 1-3 Months. Guaranteed!
Get more information
|
|
Credit Secrets
 "How
to Clean Up your Credit Report and Wipe All Your Credit Card
Debts in Record Time!"
Take a moment to imagine this...
On any given day you could be receiving new pre-approved credit
card offers in the mail, you could able to purchase a new home
without worrying about qualifying for a mortgage, financing
for automobiles and boats could be readily available to you,
and...you could have piece of mind knowing that should an emergency
arrive you would have the resources to take care of you and
your family.
Get more information
|
|
