Podcast 131: Guard Your Signature
To co-sign means to sign along with someone else. The contract will now have two signatures, yours and your friend’s. By cosigning you and your friend are committing to pay back the loan with interest. The reason your friend is asking you to cosign, is because the bank does not think your friend is a good risk and might not pay back the loan. Another reason the bank has chosen not to loan the money to your friend is they do not have sufficient assets or collateral to cover the cost of the loan.
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