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Are You Really Ready To Ask Someone To Co-sign
For You
It looks like you may have reached a turning point
in the road. Whether it's for an auto loan, a personal
loan, or department store credit, you may not be
able to qualify by your own merits. This is when
the cosigner comes into play. The best place to
look for a consigner is within the family, or either
among friends. You'll want to trust them just as
much as they will want to trust you.
If this individual is backing your loan, they will
be privy to the same credit checks as you would
be if this were your loan all by itself. Their creditworthiness
is based on income, homeownership, credit history,
and job security. If you default on any payments,
the consigner will have to pick up the tag. That's
why it's good to make sure that you have all of
your ducks lined up in a row before you put the
consigner's financial credit rating on the line.
Say what you mean and mean what you say!
To the cosigner, you are saying that you plan to
honor the credit contract to the letter they have
consigned for. Don't try to take on too much new
credit at first. Take the time to really look at
your spending habits. If you have had trouble in
the recent past keeping up with your finances, this
may not be the best time to put someone else in
the cross hairs.
Building and managing credit is a huge responsibility.
Just ask any one of the thousands of people that
have low credit rating scores. These people started
out in good faith. They had every intent of making
sure their payments would be complete and on time.
However, things often happen beyond anyone's control
and those things that happen are events that can
often send a good credit rating south for much longer
than just the winter.
Put aside a little money each month to cover the
loan repayment and make it a priority. Protect the
person who consigned as if he or she were you. Remember
that the reason you needed them in the first place
was because you couldn't qualify on you own merits.
That doesn't make you a bad person in the least.
It just means that it may take a while before the
system deems you credit worthy and until that happens,
make sure you have the consigner's best interest
at heart.
About the Author
Liz Roberts is a loan consultant with NewHorizon
Finance and has been providing consumers
and business owners with financing since 1989.
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Copyright 2009 |
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