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Cosigning: How to Find a Co-Signer

Have you started a new project and have run short of funds? The first plan will be to borrow some amount from the bank or take a loan. But what if you have poor credit, high debt, or some other financial limitation on your record?

The good news is, you still have hope. You can find a cosigner anytime and take a loan from the bank.

Do you know what exactly Co-Signing is?

Cosigning is a process that allows a person to apply for a loan with another person who has some blemishes on his financial records. If you cosign a loan, you will be liable to pay the amount by yourself on behalf of that person. It is not merely a reference, but you are being legally obligated to pay the whole loan back.

How to Find a Co-Signer

Who is a Co Signer?

A cosigner is a person who applies for a loan, credit card, or a mortgage for another person - or with another person. During the process of cosigning, the cosigner’s credit score, income, debt, and other financial details are kept in consideration.

After a thorough evaluation of the loan application, your loan is approved.

Although not many people avoid cosigning as it is a risk for the cosigner. However, for the borrower, it would mean a whole new world!

If you involve a cosigner within your loan application, there are a lot of opportunities and possibilities for you. A cosigner applied loan will give you the loan at lower interest rates, flexible payment terms, and relatively lower fees. Moreover, in addition to the cosigner, the lender will equally pursue the other person to pay for the loan.

Finding a Cosigner

Finding a cosigner is not an easy task. But you must first look for an eligible cosigner within your social circle. This might include anyone such as spouse, parents, extended family members, grandparents, or siblings, etc.

Your parents or siblings are your first choice as a cosigner as they know you and are fully aware of the circumstances that are compelling you to take a loan from the bank. Moreover, an ideal cosigner is the one who has enough cash or money in his bank account.

This is to ensure that even in the worst-case scenario, his own business is not affected.

The next tip is to be real about your financial state or expenses. You must not be reluctant or shy about telling your exact position. If you share your income and job details, you might gain some interest as a cosigner, and he will agree to apply for the loan with you.

But what if none of them fall in the criteria or do not agree to be a cosigner. Don’t be surprised if none of the cosigners agree to work with you. It’s way too risky for the people, and most wise people usually avoid becoming a cosigner even for their own kids.

Disadvantages to a Cosigner during the process of Cosigning

There are many disadvantages that the cosigners have to suffer from. Although they do not use up the loan or money, you are responsible for them in the sight of banking and finance. Hence, if the borrower is unable to make payments or delays them, it will actively affect the credibility and profile of the cosigner.

Once a cosigner has applied for a loan, he must ensure that he won’t have to lend a loan for a few coming years. Because if they do, their loan won’t be approved provided that they are already involved in another financial case. This will negatively impact the financial report of the cosigner.

The cosigning process is as if you applied for the loan by yourself, used it but are not ready to pay for it. In the worst case, the lender might report the missed payments to the credit bureaus, and the co-signers name and financial status deteriorate.

In some cases, the borrower doesn’t make the payments and keeps them hidden from the co-signer. In such a case, he might not be able to do anything on his own, but the missed payments will negatively affect their credit.

To add to the misery, the cosigner won’t find this out until he is all ready to apply for a new loan for himself!

Unable to find a Cosigner?

If you are unable to find a cosigner, you can utilize certain services that might help you in this regard. However, you have to be super careful while doing so. These services usually charge hefty fees, and many of them can be involved in fraudulent activities as well.

It is better to do vast research and consider checking Better Business Bureau before having assistance from one of these services or applications.

Alternatively, if you don’t want to rely on these services, you can try to improve your credit. Although it might take some time, the process will be far more satisfying, comfortable, and reliable.

The Verdict

There is no denying the fact that your best bet is to improve your personal credit. You can get a secured credit card. They usually require a deposit and come with a smaller limit. However, if you use the card wisely, you can effectively build up your credit score and history.

Alternatively, your credit score will improve if you get small loans, pay them, and get them again. In this way, the chances of getting approval for bigger and larger loans increases significantly.

Additionally, you might be able to borrow some amount against some of your assets or property. If you pledge your asset or property as collateral for a loan, you can easily have it approved. The lenders are concerned with security - be it in the form of a cosigner who would pay in place of you pr an asset that they can seize to recover their money from

However, it’s quite risky as it could mean losing the asset if you are unable to pay the loan on your own.

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He worked as an attorney practicing insurance defense and commercial litigation. He covers lenders, bank accounts, mortgage rates, refinance rates, and borrowing and savings tips. You can reach Chris Miller at

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