Co-Signer
A co-signer is a person who signs a loan agreement and shares responsibility for repayment. If the primary borrower defaults, the co-signer must repay the debt.
Co-signing can help borrowers qualify or get better rates, but it also exposes the co-signer's credit to risk. Late payments can affect both parties' credit scores. A co-signer is similar to a guarantor who promises to repay if the borrower defaults.
Related Terms
Guarantor
A guarantor is a person or entity that agrees to repay a loan if the borrower defaults. It provides ...
Credit Score
A credit score is a numerical rating that represents a person's creditworthiness based on their cred...
Default
Default is the failure to meet the terms of a loan agreement, usually by missing payments. It can tr...
Personal Loan
A personal loan is a fixed-term loan that is often unsecured and used for general purposes. Borrower...
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