About Co-signing Loans

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Advice on Guaranteed Loans and other Personal Loans topics.

What is a co-signer?

About Co-signing Loans

If you are a first-time borrower or one who has negative information in your credit report (or bad credit), your lender may prefer a little more security before they shell out the dough. Sometimes a lender will require you get a co-signer to guarantee your loan, this known as a guaranteed personal loan. What a guaranteed loan means is essentially that another person agrees to be a co-borrower. That person's credit history is considered by the lender when deciding whether or not to make the loan. If the loan is made, that person is liable for the debt in the event that you become unable or unwilling to pay it according to the agreed upon terms. Parents used to co-sign credit card applications for their children to help them establish credit and still frequently co-sign their children's student loans.



Nobody has commented on this tip yet. Be the first.


URL: (optional)


Not finding the advice and tips you need on this Personal Loans Tip Site? Request a Tip Now!

Guru Spotlight
Jolyn Wells-Moran