Quote:
Originally Posted by little jacob
nobody should EVER cosign a loan for ANYONE. i would not cosign a loan for my best friend, my child, my parents, the old lady's parents, no one.
if they did not already have a long history of not being trustworthy in finance they wouldn't have to be asking for a cosigner.
if you cosign a loan, you should just assume that you're going to have to pay all of that balance off.
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Eh, there's exceptions, it depends on the circumstances. For instance, shortly after my wife and I got married I impregnated her, and due to complications with the pregnancy we were left with a substantial amount of medical bills that insurance did not cover. This came after her being off work bed ridden for six months when we were minus her income, plus our health insurance premiums doubled during that time period. So naturally we started out in a deep hole, and we couldn't satisfy our debtors as quickly as they wished so our credit took a nasty hit right off the bat. Luckily for us we already had a home and decent vehicles so we were able get by without credit for many years, but if we had needed a loan for a car or something else we would've probably needed a cosigner, and it wouldn't have had anything to do with our lack of trustworthiness.
But yes, as a general rule it's a risky proposition, and no one should ever do it if paying off the loan themselves is going to cause financial hardship.