Understanding the Financial Risks of Co-Signing Loans

Reported 7 days ago

Co-signing a loan for a friend or family member may seem like a simple favor, but it carries significant financial risks. As a co-signer, you're responsible for the entire loan amount, which can affect your credit score and debt-to-income ratio. Even if the borrower defaults or files for bankruptcy, you remain liable for the debt. Additionally, removing yourself as a co-signer is a complicated process. Proceed with caution before committing to this long-term financial obligation.

Source: YAHOO

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