If you have prime credit, then you have a winning ticket toward securing the investments that you need toward a bright future. From auto loans to mortgages, those with prime credit are often rewarded for their smart spending.
But if friends and family have less than perfect credit, you might soon find yourself wondering "What is a co-signer on a loan?" Co-signing a loan allows someone with good credit to help out someone who isn't as financially secure. While this can be a lifesaving gesture to those who are building a new life, co-signing a loan is not without risk. Find out whether or not you should co-sign in our guide to personal finance. Does co-signing a loan affect credit?
What are the Perks of Co-Signing a Loan?
Sometimes good people end up with bad credit. Maybe your spouse is working off college credit card debt, or your son or daughter has no credit history at all. In these cases, you can become a co-signer to a loan in order to look more appealing to lenders. This can help pave the way for your friend or family member to become more independent by securing that car, home, or other investment that they need for a better tomorrow.