If your credit rating is low, or if this is the first time you buy a house, you are likely to be asked to find a co-signer to help you buy the house and apply for a loan. When you have a co-signer, you have the opportunity to buy a house, and as you repay the loan on time, your credit rating will be improved, and your co-signatory will be improved. But all of the above is based on your repayment on time, and if you fail to repay on time, your credit will be damaged, including your co-signatories. I believe you also think this is not a good thing, especially if the co-signer is your relative or friend, if they suffer losses because of you, they will probably blame you or ask you to make necessary compensation. Even if you can bear all these consequences, you lose your credibility, and others will probably refuse your request in the future, and you can hardly face the different eyes of your relatives and friends.

There is joint liability for loans.

Once the co-signatory and the borrower sign a loan contract, they are a grasshopper tied to a rope, sharing the responsibility of the loan. In particular, residential loans, the amount is very large, the responsibility is also great. The co-signatory exists to ensure the credit of the borrower, and this relationship determines that there is a direct liability relationship between them. if the borrower is an irresponsible and untrustworthy person, then the co-signatory may encounter trouble. For the co-signatory, a good credit rating is likely to turn into a bad situation as a result of the loans he guarantees, affecting his own life. Therefore, when a person is required to act as a co-signer, please carefully evaluate whether the lender has good character and the ability to repay on time. If the person is worthy of your guarantee, then you can become a co-signer.

The co-signer fell into a trap

If the co-signatory unfortunately guarantees an irresponsible borrower, he is likely to run into trouble. In many cases, the co-signatory is only asked by the borrower to sign the contract under the excuse of "help" and does not understand the specific provisions of the contract. So most of the time, the co-signatories were surprised when they were told that they had to bear the responsibility of repayment. Even if some borrowers give up their houses because they think they have too many loans to repay, the co-signatory will suffer in the end, which will not only affect the co-signatory's credit rating, but also get him into debt problems. The result is quite bad. You don't even know how to become a dishonest person. In order to avoid this situation, we should regularly supervise the lender to repay on time, otherwise, lazy you will lead to a bad situation.

Do not know anything about the repayment

The co-signatories are often friends or relatives of the borrower, so they trust the borrower and do not always know about the repayment. So the co-signatory will not notice the repayment notice or warning issued by the bank or the lender to the borrower, and by the time the bank starts contacting the co-signatory, the situation may have gotten worse. It is too late for the borrower to repay it. Even if you trust this person again, please pay attention to whether he repays on time and supervise him. This is not only to help him, but also to help you maintain your credit rating and avoid getting into more trouble!

In short, I think that the role of co-signer, as an ordinary person, is not necessary to compete. Compared with the advantages that this role brings to you, for example, it can increase your credit rating or enhance friendship. However, once the loan goes wrong, the harm it will bring to you will greatly affect your quality of life.

Affect the relationship between two people

Once two people are involved in money issues, their relationship may become tense. So, the co-signer must seriously consider whether this person is worth your guarantee? If there is a problem, can you bear the corresponding consequences? If you can't have a definite answer, I suggest you don't guarantee others. This is not a good job.

（Writer：Lany）