One significant element in the simple way to Raise credit score is to not co-sign for another person on a loan. The nation's average of folk that require a co-signor in eventually defaulting on a debt is over seventy five percent. This statistic should give you pause as to whether you wish to accept the responsibility of co-signing because if they default you pay, its as simple as that.

Naturally it can be tricky in making a decision not to co-sign for your youngsters especially if they haven't established themselves in the credit market. You're feeling guilty and believe you owe them. However , you owe it to yourself to analyze the responsibility of co-signing and the probable repercussions of default by your youngster in light of their personal characteristics, such as, whether they have a history of being irresponsible, or not ready to hold a job.

If they have such a history you may want to consider not co-signing. Who knows your youngster better than you in this respect since your raised them.

If you have an older adult kid who has had an opportunity to build good credit and haven't, maybe it would not be such a great idea to co-sign for them. By the time a kid is 22 or 23, gainfully employed and have not gone to school they should have build some credit be it bad or good or somewhere in between.

Therefore when your adult child in their mid thirties ask you to co-sign on a vehicle loan, ask why they need a co-signor. You can bet the farm that their credit is bad and even a poor credit bank considers them an appalling risk and want some guarantee that the debt will be repaid.

You are that assurance with your good credit scores and decent earnings. Remember that over 75% of the people that need a co-signor default on the debt, unfortunately this includes your kids, family and friends.

In addition, if their sued you'll be referred to in the suit as well . If there's a judgment, it's going to be against you both. The creditor under these circumstances can collect from either of you or both until paid in full .

If the defaulting party declares bankruptcy, then they're relieved of the debt but you aren't relieved and will have to pay.

You love your family especially your kids but before co-signing you need to analyze this process from a business standpoint, what's in your own interest in the short term as well as, the long term.