Co-signer / Guarantor
A third party who agrees to fulfill repayment if the primary borrower defaults.
Detailed Description
Co-signer / Guarantor
What is the main responsibility of a co-signer or guarantor?
The main responsibility is to repay the loan if the primary borrower defaults.
How does being a co-signer affect your credit score?
Co-signing can impact your credit score positively or negatively, depending on the borrower's payment behavior.
What is the difference between a co-signer and a guarantor?
A co-signer shares equal responsibility from the start, while a guarantor becomes liable only if the borrower defaults.
What are common scenarios where co-signing is used?
Common scenarios include student loans, auto loans, and mortgages.
How can a co-signer be removed from a loan?
A co-signer can be removed by refinancing the loan or meeting specific lender criteria for co-signer release.