Never ever ever ever ever ever co-sign for someone or have someone co-sign any kind of loan for you EVER!!!
Please don't make any excuses for this. No BUTS, IFS, or EXCEPTIONS!
Co-signing not only ruins credit, it ruins relationships. It truly doesn't matter what side of the coin you are on, this is not a good deal.
Let's take a look at a couple different scenarios...
 |
| dream house |
"You don't understand, my situation is completely different! There is no way I will lose my job," you say... {okay then, how about this situation}
2. You just got married and you and your wife found the perfect house! You go apply for the loan and unfortunately they will not approve you, unless you have a co-signer. Great news - your wife's parents volunteer so everything is great right?! Well, 5 years down the road you decide that things are going really well and you want to sell the house and buy something with more room for your growing family. Your wife's parents are not on board with this. Their names are on the loan after all they feel they should have a say. They feel that the market is rising still and they should get a portion of the proceeds for the home since you wouldn't have been able to buy in the first place without their help. You have a few options here...you can do it anyway and risk your relationship, you can go ahead and sell and then offer them a portion of money to thank them and salvage the relationship, you can offer for them to take over the payments and keep the house, or you can just agree with them and stay.
"Not in a million years! Our situation is completely different," you say... {how about this one}
3. You just got married and you and your wife found the perfect house! You go apply for the loan and unfortunately they will not approve you, unless you have a co-signer. Great news - your wife's parents volunteer so everything is great right?! Well, 5 years down the road things are going really well for you guys, you haven't even had one late payment. But guess what? Your wife's parents decide to purchase a new car...they are denied for the loan (too much debt showing for them because they have co-signed for your loan).
There are rarely happy endings when it comes to co-signing...there is a reason the bank is asking for a co-signer {if you were living within your means, I doubt there with be an issue with getting a loan}.
Ok then...you should just borrow some money to make the desired purchase then right! WRONG - stay tuned for Day 22 :-))
1 comments:
"The borrower is slave of the lender" is from scripture~ if one co-signs, be prepared to take the responsibility (co signer)... if at all possible..try another safer method~ fleur~
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