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to cosign or NOT to cosign…

That is the question with a very simple answer…HELL NO.

Yes of course there’s an exception to everything, but they are very few and extremely farther between.

There are two main reasons a person needs a cosigner

  • Their credit score is not high enough (which likely means they messed their own up & not good with $$$)
  • They don’t have enough funds/or make enough money to get it themselves (which likely means they cannot afford it)

Both are situations you should not want to involve yourself in unless you are able to comfortably make the payments. Understand that cosigning makes you just as liable for the debt meaning if they can’t get the funds from the primary they have just as much right to demand it from you.

If you still want to cosign, My last warning would be to ensure that you already have the things you want like a house and car. One important factor in getting approved for a mortgage/auto loan is your debt to income ratio. The standard acceptable for a mortgage is between (26-28%). So if you gross $3000 you should not be paying more than 780-840 for debt which includes auto loans, mortgages, credit/charge cards, student loans, AND anything you cosign for.

If you STILL want to cosign, get the understanding in writing. Have them sign a promissory note. If you don’t know what that is you probably shouldn’t be cosigning anything at this point in time.

Enough said.

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HIIIII

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