Thursday, May 26, 2011

How Co-Signing Affects Credit Scores

Dan Danford, Founder and Chief Executive Officer of Family Investment Center, answers this personal finance question:

"My son wants to purchase a car and have me co-sign for it. I have an average credit score so I don't think I would be rejected as a co-signer, but will the fact that I am co-signing for my son affect my credit score in any way?"

Danford explains that while co-signing may not affect your credit score, it may affect your ability to get loans in the future.

Remember that loaning money or co-signing is a business transaction. Treat it as such.

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