To Raise Credit Score to improve Credit, you need to give extensive thought whether to co-sign on a loan. It is especially hard to decline to adult children whom you know are wrestling and require some assistance. Ask yourself why will they need a co-signor? Is it because of subprime credit, inadequate income to take of their obligations or some other reason? The very fact they are being denied credit based on their own credit report and need a co-signor should set off warning bells.

Nationally over 75% of the people seeking extension of credit that requires them to have a co-signor default on the debt. The co-signor ends up paying all or some of the defaulted debt. If the borrower defaults you as the co-signor must step-in and pay if you do not desire your credit ratings to be negatively impacted. To remove this negative information if true is next to impossible to do. The info will stay on your credit record for no less than 7 years.

Once signing the contract as a co-signor you can't reverse it unless all parties to the first contract consent to change the terms and conditions of the agreement. Being terrified the borrower will default some day is not sufficient reasons to change the contract. The lender wanted a co-signor for a reason. That reason is to try to guarantee repayment of the loan.

If an individual ask you to be a co-signor, inquire of them whether or not they have considered the impact to your credit score whether they pay in a timely fashion or not. Regardless of if they pay as agreed, there is still some breakages to your credit scores. Your debt-to-income proportion increases which makes it trickier for you to obtain credit for your own desires without being subject to increased rates. Further, if they default on the debt you will be obliged to pay for them. Naturally everyone swears they will not leave you holding the bag. But 75 percent of the defaulting borrowers do exactly that, leave their co-signor holding the bag.

Word to the wise, if you want to raise your credit history or keep your scores at a level alright to creditors, you should always consider very carefully whether to co-sign for another be it your kid, friend or other relative or else you may be left with holding the bag of debt.

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