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.

Credit Score Tip

For additional information on how to repair your credit, please contact our office at 617-265-7900 or request a free consultation below.