Houston credit repair expert Vanessa Perry explains the dangers of co-signing for others and how to avoid needing a co-signer in the episode below of Ask Impeccable
Why Would You Need A Co-Signer?
People are in need of a co-signer. when they do not qualify for something with their own credit. Usually this comes from lack of credit or an insufficient score. A co-signer is meant to entrust that the borrower is responsible. If and when the borrower does not fulfill their obligations towards the payment, the co-signer is then responsible for making the payment. If the payment is not made a negative mark is made on the borrower and co-signer’s credit.
Consequences of a Co-Signer
Co-signers often feel like they are doing “the right thing” by co-signing. Co-signing enables the borrower. Thus leading the borrower to fall backwards and not be held responsible for their payments and puts the co-signer at credit risk. Co-signing has many consequences such as:
- Collections
- Late Payments
- Reposessions
- Foreclosures
- Broken Leases
- Lower Credit Score
Above all, rather than co-signing it is beneficial to consider credit restoration for the borrower. This elevates the need for a co-signer and helps the borrower be self-reliant.
Houston Credit Repair
Credit restoration is a solution to avoid needing a co-signer. With having your credit where it needs to be to qualify and get the best rate you will not need to put money down or need a co-signer. Impeccable Credit has been saving co-signers and borrowers for over 16 yers with two physical locations. In other words, before you agree to co-sign make sure you refer the girls at Impeccable Credit. Impeccable Credit Services also helps with the cleanup if a borrower burns their co-signer in the process. Feel free to give us a call and contact us with any of your credit questions 713-378-1500.
