Every now and then, you may come across the occasion where somebody else asks you to guarantee a loan for them. There are a number of things to consider before you agree.
Another word for guaranteeing a loan is co-signing. It constitutes a promise to pay another person’s debt if that person fails to do so. Some cases where a co-signer is required includes renting real estate, loans to people with bad or low credit, and mortgages. Usually the agreement has to be in writing, and forms a legally binding contract. Read the rest of this entry »