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Benefits of cosigning. Drawbacks of cosigning. You can help a loved one qualify for a loan. You assume full liability for payments and late fees if the main borrower falls behind or files bankruptcy
Credit history, credit score, income, debts, employment and other financial details are all likely to be considered as part of the loan application when you agree to become a co-signer for someone.
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If you have a lower credit score, expect higher interest rates and fees. For example, those with scores below 690 are likely to get a rate between 17.80 percent and 32 percent.
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Also here’s how to get out of being a co-signer on a loan. For You: 3 Signs You’ve ‘Made It’ Financially, According to Financial Influencer Genesis Hinckley
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