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How to Find a Co-Signer for a Loan

Before finding someone to ask to become a co-signer for you, it is important to recognize that being a co-signer on a loan is a serious matter. The reason that it should not be taken lightly is because when one agrees to co-sign a loan, they are in essence legally agreeing to pay the loan and all applicable interest back to the lender in the event that you do not pay the lender back. With the popularity of loans growing as well as their increasing amounts, being asked to be a co-signer is a daunting question to answer and one that is not easily answered even if the borrower is a member of your own family.

You may be wondering why you should even bother getting a co-signer since in essence you are asking someone to take on a large responsibility when you ask someone to co-sign. Having a co-signer can not only help you secure a needed loan, it can also help you get a lower interest rate which means less you’ll owe later down the line.

With this knowledge regarding the seriousness of commitment a co-signer takes on now known, you should focus on those individuals that are both close to you and also financially stable . Being trustworthy is also a good trait as well. Many people will ask their immediate family members whether it be a parent, spouse, or even one’s adult children. Some people will ask extended family members that may be financially stable, close friends, or in rare cases even trusted colleagues. Again the level of commitment and responsibility of being a co-signer is often too much for a person to commit to and you should not take rejections personally.

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When asking the person whom you hope will co-sign your loan, make sure they fully understand that they become legally responsible for the loan if you fail to pay it back and that their credit rating and history can be affected by their decision to co-sign. You’ll want to assure the person that the loan is being taken out for a legitimate and worthwhile reason such as furthering your education or purchasing your first home. Don’t even bother asking someone for this commitment if the loan you seek is for something frivolous such as a car you couldn’t normally afford or other material items that you wouldn’t normally purchase.

So in summary, you may be able to find a co-signer among your family or close friends but should look to those that are financially responsible, financially secure, and who fully understand the risks involved. You have a responsibility to the person you are asking to disclose all information about the loans including their purpose, interest rates, fees, co-signer liability, deferment policies, loan limits, and lender information. Do not be surprised if you are unable to find a co-signer, their rejection of your question is not personal, it is merely financial.