Is it Better to Get a Loan With a Co-Signer or Not?
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With a Co-Signer
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When you get a loan with a co-signer, the co-signer shares the full legal obligations of your loan with you. If you miss your scheduled payment, the lender can collect the money from your co-signer, sometimes without her knowing about it. Lenders will also hold your co-signer accountable if you default on your payments because you lost your job, became ill or even died.
Without a Co-Signer
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Without a co-signer, you become solely responsible for paying back your loan. If a lender approves your loan without requiring a co-signer, this means that the information he has indicates that you can afford to pay back the loan without assistance. This puts you in control of your loan. If you ever find yourself in financial trouble, you can ask for a friend's assistance rather than having a lender forcibly take the friend's money unknowingly.
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Bottom Line
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When you apply for a loan, the lender either approves it or does not. If he approves the loan, you don't need a co-signer. If he does not approve you, ask a co-signer for help only if the loan will go toward something essential, such as education. You should never put your friends or family members' money on the line for trivial matters.
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