What Are Your Rights as a Co-Signer? | Personal Loans and Advice
If someone you're close to needs to borrow money to buy a home or start a business, you might want to help them out by co-signing. Co-signing a loan can help the person you care about get ahead financially, but it's a significant commitment that you should enter into with your eyes wide open.You need to be aware that a co-signer's rights are limited. Co-signing means promising to pay back a borrower's loan if the borrower fails to pay. You have the responsibility of repaying the debt, but you don't have any right to use the loan proceeds.What Is a Co-Signer?A co-signer is someone who agrees to be responsible for repaying another person's loan. If a lender isn't confident that a loan applicant will pay a loan back, it might insist on a co-signer.How Is a Co-Signer Different From a Co-Borro...