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"The Risks Outweigh the Rewards: Why You Should Never Co-Sign on a Loan for Anyone"

Co-signing on a loan might seem like a noble gesture to help a friend or family member, but it's a decision that comes with significant financial and personal risks. In this blog, we'll explore the reasons why you should never co-sign on a loan for anyone.


Our client came to us because she was very frustrated how her credit score is now. She co-signed for an auto loan for somebody else and they did not pay and the car was repossessed. She also stated that she co-signed for her brother a few years ago and in July there was an accident. The insurance company paid it off but wasn't paid on time and the balance still isn't updated. There's also another vehicle loan under her for $7600, she lost her job and couldn't pay for it. But now, she's paying $300 every 2 weeks. Lastly, she also co-signed for a car loan for her son and it got stolen, she reported about the missing vehicle but they didn't do anything about the situation or even remove it.

We have advised client that it is never a good idea to co-sign for a loan for anyone. We will help her with any issues and by the end of this year or next year she will be in a different place. We will help her get started and get this all done.

Most people do not realize the impact that it can have if the other person does not pay. It can tie up your credit capacity and limit your options for obtaining credit when you need it. And usually this all comes as a surprise later down the road.




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