From time to time there will be the occasional friend who asks me to co-sign a loan for them. Sadly I always refuse because I don’t think most people realize that cosigning a loan is a bigger deal that it appears to be.
You aren’t just lending someone your credit score but rather you’re on the hook if they ever default. It’s a serious financial step that you should reserve only for people who you intimately know. I wouldn’t mind co-signing a future spouse’s loan because chances are I’d know their finances well enough to know they aren’t likely to default and relationships are about trust so I hope I’d trust a spouse enough to co-sign a loan or that would be the last of my problems.
Co-signing a loan adds the debt amount on both your credit reports so if you’re someone that needs their credit report to appear debt free think twice about co-signing that loan.
I only ask my parents to