Things You'll Need:
- Loan statements Income statements
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Step 1
Find a cosigner. Being a cosigner is a considerable responsibility. Essentially, a cosigner is agreeing to "vouch" for a consumer and take responsibility for a loan if it becomes delinquent. The cosigner is just as obligated to repay the loan as the primary borrower. Usually cosigners are family members---parents, siblings or children.
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Step 2
Find a lender that accepts cosigners on loans. These types of loans carry a greater risk for the lender, as the need for a cosigner speaks to the creditworthiness of the primary borrower. Depending on the size of the consolidation loan, a bank or local credit union may accept a loan; however, usually these institutions will require a cosigner and some form of collateral (car, boat, land).
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Step 3
Think carefully about asking a close friend to cosign a loan for you. Studies by the Federal Trade Commission show that 75 percent of the time a cosigner ultimately ends up being saddled with payments. Using a friend as a cosigner may put strain on a friendship---especially if you default on the loan and your friend ends up paying for your debts.
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Step 4
Prepare for a financial examination of both parties. When the lending officer looks at a consolidation loan application, she scrutinizes the debt and credit rating of both borrowers---not just the cosigners. If your credit rating is extremely poor, you may not be qualified for a consolidation loan---even if your cosigner's credit is stellar.
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Step 5
Make a payment plan for yourself if you sign a loan with a cosigner. Make a commitment to make payments on time and get back on the path toward financial health---needing a cosigner on a loan can be an embarrassing prospect.
