Should I be a cosigner?

Being a cosigner is a serious commitment, so it's important that you think about all the responsibilities and come to the right decision.

• Do you trust that the borrower plans on paying the monthly installments on the loan?
• Do you trust that the borrower can actually afford the monthly installments?
• If for some reason the borrower can't (or won't) pay the monthly installments, are you prepared to do it? Can you afford it?
• Do you understand that you'll be responsible for repaying the loan if for some reason the borrower doesn't?
• Do you understand that if the loan isn't repaid on time, there will be serious consequences for both you and the borrower: we'll pass the case onto debt collection, which means that you'll have to repay the entire loan amount at once. Your credit score will also be negatively affected, which will make it very difficult for you to borrow in the future.

If you answer 'YES' to all the questions:

It sounds like you know the borrower really well and trust them. You want to support your friend in their loan application, and that is also a great thing to help with - as long as you are safe.

If you answer 'NO' to one or more of the questions:

Then you should not be a cosigner this time.

For more information check out our Cosigner Responsibility article.

See more questions & answers