As the Christmas and Thanksgiving Day near, we feel our heart crying to live some happy moments with our near and dear ones. We become very keen to spend some chilly nights with our brothers, sisters, uncles, aunts, nephews, nieces before the warmth of the fireplace.
The relationship that blood denotes is the strongest among all. Most of us can do anything for our family at any time. So what would be your answer if someone in your family pulls you aside during this winter holidays and politely asks you to stand as a co-signer? It is undoubtedly an awkward position. On one hand you are hesitant as of the unwanted negative impact on your finances and moreover, on your personal life if the member fails to repay the loan. On the other hand, you fear of blemishing a good relationship.
However, if you have decided to help just by placing a signature on the loan petition, you need to be aware of the credit implications that you might have to face:
Co-signing is a serious issue that you need to consider twice before appearing on any conclusion. Simply, it is taking a loan on your own.If you still choose to cosign a loan petition, below is what you need to do:
There is nothing off beam in co-signing a loan but you need to make sure you are aware of the risks associated with and know appropriate defense in case you fall in any awkward situation whenever you sign for a loan.