Heads Up On Co Signing Loans

Heads Up On Co Signing Loans



Heads up on​ co-signing loans
In my opinion,​ if​ you​ co-sign a​ loan with a​ family member or​ a​ friend,​ you’re looking for trouble .​
Granted,​ if​ you​ want to​ help your child buy his first car,​ you​ may need to​ co-sign because the​ child does not have credit history yet .​
The danger is​ that if​ your son makes a​ late payment,​ the​ bank will come to​ you​ to​ pay it​ off .​
Be extremely judicious who you​ co-sign for .​
Because of​ the​ risk that another person could damage my credit,​ I​ will never co-sign for a​ friend or​ family .​
It’s not homework,​ it’s an​ assignment
Outline the​ following; read these documents and understand every clause .​
There’s good and bad risk .​
Make sure you​ have the​ skill set to​ take a​ calculated risk?
1. home mortgage(s)
2. credit card agreements and statements
3. car loans or​ leases
4. insurance contracts
Get answers to​ these questions:
Do I​ understand the​ rules of​ this contract?
Do I​ understand the​ amount of​ risk I’m taking by agreeing to​ this contract?
Do I​ understand tax laws surrounding the​ contract?
Does the​ contract fit my priorities? Forget whether you​ think you​ deserve it​ (because you​ probably do)—can you​ afford it?
Can I​ afford to​ lose all or​ part of​ my money by engaging in​ this contract?




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