Is Co-Signing Bad for Your Credit? – Credit Tip #7
Is Co-Signing Bad for Your Credit? Helping a friend or loved one get a loan by co-signing may feel like the right thing to do. However, if you are co-signing a note, consider what would happen if they failed to pay off the loan. Your credit, as the co-signer, would be adversely affected for seven years. If you want to help someone with purchasing something, such as a car or a home, do so, but in the right manner. Give them the cash they need, if you have it to loan, rather than giving them the rights to your credit.