To cosign or not to cosign
To cosign or not cosign is the question people!
Just a quick Tip from AP for those of you who are considering cosigning for someone.
The biggest thing to understand is that while you are not the primary owner of the account you are JUST as responsible for that account. Co-signing is not just a simple gesture to help out a friend or loved one.
When you cosign you are basically saying:
"Hey I know John Doe is falling a bit short of YOUR requirements, but I'll vouch for him because I know that's he's good for it."
Now here is where you need to listen to understand.
This account will and should report to YOUR credit report. You will assume all credit history built into this account.
If John Doe gets a late payment or if that account charges off or turns into a collection, it will directly affect your credit and there is nothing that you can do about it.
A common thing I hear a lot is: “They said they only needed me to cosign for income purposes, not credit.” — a cosigner, is a cosigner, IS a cosigner.
So consider and then RE-consider before you cosign. Cosigning is not a SMALL favor, it's a BIG favor.
See — short sweet and to the point.
-AP