Have you cosigned for a loan and now find yourself wishing you could escape responsibility for it? Here are your options for getting off the loan.
Cosigning for a loan is a big commitment and not one you should take lightly. For the entire time the primary borrower has the loan, you are going to be legally responsible to the creditor.
If the borrower doesn’t pay on time or defaults on the loan, your credit could be damaged and the creditor could try to make you pay. And even if the borrower does make on time payments, it will still show up on your credit report and could affect your debt-to-income ratio.
Since there are so many potential risks to cosigning, it’s something you should often say no to unless you really want to help a loved one get approved for credit that they otherwise would not be able to get.