How to Co-sign a Loan

If you are reading this article then someone has asked you to co-sign a loan. Here are a few tips that will help you to make the decision to help a friend or family member.

Difficulty: Easy

Instructions

1. 1. Ask your friend how much money they have to make the payments.

2. 2. Find out if they have any other loans that are co-signed.

3. 3. Make sure you get something in writing with witnesses.

4. 4. Have an attorney review all the paperwork before you sign.

5. 5. Understand that if your friend cannot pay then you have to pay.

6. 6. Understand that if your friend cannot pay and you cannot pay they you have done something very stupid.

7. 7. Finally, make sure you have enough cash on hand to pay the loan if you are asked to do so.