Co-Signing Loans Riverhead NY

If you have good credit, you may be asked to co-sign for a loan in Riverhead at some point. Perhaps your child needs to borrow money to buy her own car but has never had any credit in her name. Or maybe your cousin is recently divorced and needs to borrow money to make a new start.

Local Companies

Mr. Robert Kandell, CFP®
631-653-3887
5 Amys Path
East Quogue, NY
Mr. Lindsey Polhemus, CFP®
631-548-4040
25 Silas Woods Road
Manorville, NY
Mr. Michael DiMarco, CFP®
(631)331-8292
3 Apricot Rd
Mount Sinai, NY
Mr. Peter Gawreluk, CFP®
631-821-9112
88 Cobblestone Drive
Shoreham, NY
Mr. John Dios, CFP®
(631)287-4955
38 Elm St
Southampton, NY
Mr. William Araneo, CFP®
631-734-5172
1545 Country Club Dr.
Cutchogue, NY
Mr. Paul McKee, CFP®
(631)298-4453
375 Laurelwood Dr
Laurel, NY
Mr. Robert Sick, CFP®
631-569-5600
6 Dana Ct
Miller Place, NY
Mr. Gary Frisina, CFP®
(631)209-0669
42 Lower Cross
Shoreham, NY
Mr. Kevin Cantwell, CFP®
(631)744-6384
23 Birch Ave
Sound Beach, NY
Data Provided by:
  

co sign loansFor those with flawed or non-existent credit records, it can be quite difficult to borrow money. In many cases, the only way for them to do so is to obtain a co-signer. This allows the lender the opportunity to collect from someone with a better credit record if the borrower defaults.

If you have good credit, you may be asked to co-sign for a loan at some point. Perhaps your child needs to borrow money to buy her own car but has never had any credit in her name. Or maybe your cousin is recently divorced and needs to borrow money to make a new start. Whatever the reason may be, it’s important to know the potential consequences of co-signing for a loan before you go through with it.

Co-signing subjects you to a number of risks, including the following:

  • If the borrower misses payments, your credit could be adversely affected. Even though you’re not the one making the payments, you’re still on the hook for them. And in most cases, the lender is not required to notify a co-signer of missed payments. Your credit rating could be taking a nosedive through no fault of your own and without your knowledge.

  • The lender is not required to attempt to collect the debt from the borrower before going after the co-signer. The bills and late notices may come to the borrower, but if there is a default, the co-signer may be the one who starts receiving calls from a collection agency. Lenders know that they are more likely to receive payment from someone with good credit, so use their resources to pursue the co-signer rather than going after someone who is less likely to pay up.

  • Co-signing for a loan can prevent you from borrowing money for yourself. Even if the borrower makes every payment on time, the outstanding balance is displayed on your credit report. This raises your debt-to-income ratio, and could result in denial of credit when you need it.

  • If the borrower fails to repay his debt and you can’t pay it for him, you could lose your property. The lender could take any collateral that you put up for the loan and sell it. Even if property obtained with the loan is repossessed, you could still be liable for the difference between the selling price and the amount owed. If you don’t pay, the lender may be able to put a lien on your home or garnish your wages.

  • Co-signing a loan for anyone is risky business. Lenders require a co-signer because they do not believe that the borrower will repay the loan, and in many cases, they’re right. Before you sign on the dotted line, think about the ramifications. You might be helping someone you care about in the short term, but it could seriously damage your relationship (and your credit record) in the long term.

    Click here to read more from TheAdvice.com

    Related Articles
    - Cheap Auto Loans Riverhead NY
    Cheap auto loans are available in the loan market. Now the question is how to avail the loans. In this article, we have tried to find out the solution. Read on and learn more.
    - Fast Loans Riverhead NY
    - Education Loans Riverhead NY
    - How To Choose Loans Riverhead NY
    - Disability Loans Riverhead NY
    - Default Payday Loans Riverhead NY
    - Secured Loans Riverhead NY
    - Getting Unsecured Loans Riverhead NY
    - Secured loans Riverhead NY
    - Fax Payday Loans Riverhead NY