You are buried in debt, but you have finally been thrown a lifeline. You applied for a loan and after looking over your application and checking your credit, the lender has informed you that if you can find a cosigner, you have a very good chance of having your application approved.
Now, the problem you are faced with is who to choose to cosign the application.
Cosigning a loan is a huge responsibility. As the asker, you should know this because it will more than likely affect any relationship you have with this person.
For the term of the loan, the two of you are going to be linked together. If for any reason you default, they will be responsible.
Depending upon the personality type, it could mean a follow up phone call every month or the need for proof of payment.
In addition to the relationship strain it can cause, you also need to consider someone who actually has good credit.
It will do you no good to solicit someone who has average or bad credit, as the application will still end up in the refusal pile.
Now, you need to scour your friends and family list for someone who is not overbearing and that is willing to ink their name on the loan papers.
Asking someone to sign for a loan is not a task that should be taken lightly. If you default on the loan, you are not only risking your credit record, but also theirs.
If they are too overbearing, the relationship is at risk even if you are making your payments on time every month.
If they are checking up on you on the due date, it is only a matter of time before you snap and end the friendship. Keep all of this in mind as you search for the ideal person to cosign your loan.