Cosigning for a loan....would you do it?

  • metta

    Posts: 39104

    Dec 28, 2013 11:10 PM GMT
    If someone asked you to cosign for a loan (family member/friend/etc), would you do it?



    I have been asked a couples times now to cosign for student loans from family members that don't have a good history of paying their bills on time. I feel a little guilty for saying no but I don't want to add more risk.

    Top 10 reasons not to co-sign on a loan

    http://www.bankrate.com/finance/debt/reasons-not-to-co-sign-loan.aspx


  • Posted by a hidden member.
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    Dec 28, 2013 11:13 PM GMT
    Hell no. A co-worker asked me once. I had to say no. It was awkward. I guess something like this is common where he's from, but credit is serious business here in the States. No way I'm gonna fuck mine up.
  • Posted by a hidden member.
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    Dec 28, 2013 11:17 PM GMT
    metta8 saidIf someone asked you to cosign for a loan (family member/friend/etc), would you do it?



    I have been asked a couples times now to cosign for student loans from family members that don't have a good history of paying their bills on time. I feel a little guilty for saying no but I don't want to add more risk.

    Top 10 reasons not to co-sign on a loan

    http://www.bankrate.com/finance/debt/reasons-not-to-co-sign-loan.aspx


    ∆ Your answer is in the bold type.
  • Posted by a hidden member.
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    Dec 29, 2013 12:09 AM GMT
    I'll second that "hell no."
    Co-signing is for spouses and offspring.
  • Posted by a hidden member.
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    Dec 29, 2013 12:12 AM GMT
    Heck to the no! Don't do it!!!
  • Posted by a hidden member.
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    Dec 29, 2013 12:32 AM GMT
    Absolutely not.
  • Webster666

    Posts: 9217

    Dec 29, 2013 3:24 AM GMT
    Not in a million years.
    If that other person misses ONE payment, the bank can force you to pay the entire remainder of the loan, right now, in full, not in installments.
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    Dec 29, 2013 3:31 AM GMT
    I've never cosigned for anyone, but I did loan one of my best friend's 2000. bucks over the summer. He was supposed to pay it back in a month but he hasn't been able to pay me any of it yet. Even though I told him to just pay me when he gets it, we never talk anymore because he's ashamed that he owes me money. It's really hurt our friendship.
  • Timbales

    Posts: 13993

    Dec 29, 2013 3:47 AM GMT
    no
  • Import

    Posts: 7190

    Dec 29, 2013 3:54 AM GMT
    no would never do it yet my parents co-signed everything for me when I had no credit and needed stuff like car, apartment, loans of various sorts, etc etc.

    Set me up with good credit right off the bat. Now, I can pretty much finance anything cuz of good credit and an income.
  • Posted by a hidden member.
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    Dec 29, 2013 6:48 AM GMT
    I would do it, but very selectively. If the person was irresponsible and spent money foolishly, racking up a lot of debt - then no. But if the person was a good, thoughtful, considerate, well educated person who just needed some help getting started, and had a good job, etc. (like the guy above me - Import) then I'd strongly consider it. Here's why. My grandfather loaned me all the money for college and we signed a contract together. I was so grateful, that I never missed a payment (for the whole 5 year note). If he hadn't done the loan, I couldn't have gotten the money elsewhere. There weren't the number of grants and loans then, unless you were exceptionally poor, etc. So - I'm grateful and am willing to help others in the way that I got help when I needed it.
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    Dec 29, 2013 7:53 AM GMT
    I'm very impressed that the majority of responders to this thread said no. My first couple of years in finance was in retail banking and I lost count on the number of co-signed loans I saw that went to collections. Imagine having an 800 credit score and then having that depleted to 550 because of the other person's irresponsibility. I'll pass, thanks!
  • Posted by a hidden member.
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    Dec 29, 2013 9:53 AM GMT
    Co-sign between parents/children is pretty normal. I think that's how how most people establish credit when they reach adulthood. But between extended family and friends, that's like reality show drama waiting to happen. icon_lol.gif
  • Posted by a hidden member.
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    Dec 29, 2013 3:06 PM GMT
    NO FREAKIN WAY my aunt Suze Orman forbids it. icon_lol.gif
  • Posted by a hidden member.
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    Dec 29, 2013 3:07 PM GMT
    no
  • Posted by a hidden member.
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    Dec 29, 2013 3:29 PM GMT
    Depends on who.
  • Posted by a hidden member.
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    Dec 29, 2013 4:26 PM GMT
    I have refused many times to friends , if they have a bad credit history , there is a reason for it !
  • LEANDRO_NJ

    Posts: 1116

    Dec 29, 2013 6:53 PM GMT
    My parents cosigned a loan for me when I was young; and that in itself took a lot of risks on them, so if my elderly living parent ever needs a loan today, I will do it in a heartbeat with no questions asked. My siblings and I follow our parents example, so yes, if one of us take a loan and need a cosigner we will do it for each other. Cosigning a loan beyond my parents and siblings? no way!!!
  • metta

    Posts: 39104

    Dec 30, 2013 5:39 AM GMT
    Thank you! I just told them a second time no. I just can't take on more debt right now. I have always hated having debt. I can't wait to pay off my mortgage. I know they will ask me again in the future though when their 3rd child is old enough.