Never.  Never.  Never.  Never do it.

Never do it!……….

For anyone…… no matter who……and don’t fall for any sob stories or guilt trips they’ll hand you.

If someone is taking out a loan, it means they don’t have the money to pay, in full, for what they plan on buying.  Of course most people do take a loan out here and there throughout their lifetime.  College, car, and of course a mortgage.  A down payment is made, and the balance of the item, plus interest for use of the money, is then divided equally for how many months… or years until the loan is paid in full.

But…..if a person is taking out a loan for something, and needs someone to cosign… run!!

Run the other way!  It is a red flag that the person taking out the loan does not have the income to support the loan payments, and in order to secure the loan, they need the signature of someone who will take over the payments for them when they can’t…or choose not to… pay the loan themselves.  Do not let that someone be you.  Never, never, never ever cosign.    …..Never.

Too often what happens is they default on the loan.  They may make the payments for a few months, and then stop…. and you will have to pay it off….whatever the balance is … you have to continue the payments until it’s paid in full.   You signed on the dotted line – taking on the responsibility of payments if the loan is in default…..and their loan is tied to your Credit Score.

A example of what could happen:  Your very best, oldest and dearest friend or relative asks you to cosign for a car.  You hate to say no, so you cosign.  They begin to make payments for a few months….then there is an accident and the car is totaled.  Your friend or relative stops making the payments, but all the payments that remain (car totaled or not) are now yours to pay…. because you cosigned the loan. The loan company comes after you because you are legally responsible. You then have to continue making the agreed upon payments until the loan is completely paid….could be 59 out of 60 payments….and….you have no car…it was totaled.  And remember, all this is on…….. your……Credit Score.

So…..Never….Cosign.