What does it mean to be a cosigner on a loan?
Furthermore, how is a co signer's credit affected?
In a strict sense, the answer is no. The fact that you are a cosigner in and of itself does not necessarily hurt your credit. However, even if the cosigned account is paid on time, the debt may affect your credit scores and revolving utilization, which could affect your ability to get a loan in the future.
Similarly, is cosigning a loan a good idea? Even if the borrower is diligent about making the payments, you may still run into credit problems as a result of cosigning. Any loan you cosign will show up on your credit report as one of your own debts. Yes, that's a hassle, but if this person can't get a loan without a cosigner, there's a good reason for it.
In respect to this, who gets the credit on a cosigned loan?
If you are the cosigner on a loan, then the debt you are signing for will appear on your credit file as well as the credit file of the primary borrower. It can help even a cosigner build a more positive credit history as long as the primary borrower is making all the payments on time as agreed upon.
What does it mean when you cosign a loan for someone?
A cosigner is someone who applies for a loan with another person, and legally agrees to pay off their debt if they aren't able to make the payments. But with a cosigner, the lender will be more likely to give someone a loan because the cosigner can step in and make the payments if the other person cannot.