A Social Network for Women in Business, Women Entrepreneurs, and Bloggers
Should I Co-sign A loan, credit card, or Apartment for a Family member?
If you’re a parent then I suggest to add your kids on your credit accounts as authorize user. This will build up their credit, so you as the parent will not need to co-sign for their student loans, cars, and apartments.
Now, if you have a family member or love one that having credit issues and they ask if you would sign for them a car, credit card, or apartment, then I would suggest you not to do it. The reason is that it could ruin the relationship. For example, if a family needs to move into a new apartment and they ask you to co-sign and you decide to do it. If that person loses his or her job, then you’ll be stuck with making the payments or ruining your personal credit and the relationship.
I always suggest if a person is having credit issues offer to help them repair their personal credit, if they refuse, then you know that person is not the one to be offering help too. Some may argue that you should look at how financially responsible the person is in order to determine if it’s worth you putting your good personal credit on the line. However, you must factor in that things could happen to the person or their employment and that may leave you on the hook for extra bills.
So, in conclusion, I would suggest find other ways to help them, rather reserve the relationship then jeopardize personal credit if the person is not will to fix their own credit.
Add a Comment