Think Twice Before Co-Signing That Loan
by Lynne Adkins
PHILADELPHIA (CBS) -- Co-signing for loans is a real pain.
Putting our name on the line is costly according to Matt Schulz, Senior Industry Analyst at CreditCards.com, which compiled the report.
"38% of co-signers got stuck with some of the bill because the primary borrower didn't pay it all. About 30% saw their credit score drop because the other person played late or not at all," said Schulz.
Half of all the loans we co-sign for would be car loans, mainly for our children and step children.
The survey also finds that the experience has been so bad for many of us that it's damaged the relationship with the other person signing that financial agreement.
Schulz suggests before co-signing you pay close attention to the details and make sure you have the money to spare should the other person default.
