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Why You Should Never Co-Sign, Part 2

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Why You Should Never Co-Sign, Part 2

You're Putting Your Credit Rating at Risk

Default on co-signed loans is very common. More common than you’d like to think. In case of late payments or default, it’s your credit score that’s being compromised. So before you co-sign for anyone, please make sure you are prepared and OK with your credit score taking a beating. If that were to happen, next time you’re in need of a loan, you’ll have to accept higher interest rates and less amiable terms, which at the end will cost you even more! You may even be disqualified for a future loan.

Today's tip brought to you by Mvelopes and Money4Life Coaching.