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Consumer: Co-signing a Loan

Authored By: Legal Aid of North Carolina LSC Funded
Beware of co-signing.  When you co-sign for a relative or co-worker to buy a car or obtain a loan, you become legally responsible for making the payments if the other person stops making them. 
If you are asked to co-sign a loan, first verify that the lender will not make the loan without a co-signer.  Do not co-sign unless you are financially able to take over payments if your friend or relative stops paying.

 

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Last Review and Update: Jul 31, 2012