Co-signing a loan
April 15, 2020
I’m Miriam Neff-with STARTING OVER FINANCIALLY, and I’m Valerie Neff Hogan, and we’re here to talk about money
M Important financial advice, NEVER co-sign a loan. If a bank won’t loan someone money, then you shouldn’t either, even if they’re your child, boyfriend, girlfriend, needy relative or dear friend. Valerie, as an attorney and certified financial planner, why is this so important?
V Your signature means you are responsible for the debt if the person you co-signed with doesn’t pay up. If they fall behind on payments your credit score will be damaged. You are responsible.
The reason THEY can’t get a loan on their own, is the same reason why you shouldn’t. Its emotional, especially within families. If you can’t give that money as a gift, its a bad idea.
M Good advice, Val.