 TITLE: What Is a Cosigner? CONTENT: Pros and Cons of Cosigning\n--------------------------\nIf you can find a cosigner with a strong credit profile, you may be more likely to get approved for the credit card or loan you need. However, there are potential risks to consider—whether you're the cosigner or the borrower considering asking someone to cosign with you.\n### Pros\n*   **Your approval odds may increase**. If you have bad or even fair credit, applying with a cosigner could help you qualify for an unsecured credit card; you're also more likely to be approved for a loan or mortgage with more favorable terms and a lower interest rate.\n*   **You can help a friend or relative in need.** Cosigning for someone with bad credit could help them get approved and save hundreds or thousands of dollars in interest. Even better, you can play a part in helping the primary borrower learn to manage credit responsibly.\n### Cons\n*   **You risk damaging your credit.** As a cosigner, your credit could take a hit if the borrower pays late or misses payments and the lender reports the delinquency to the credit bureaus. This can cause your credit score to plummet and could result in a strained relationship with your cosigner.\n*   **You assume liability for the entire credit card balance or loan amount.** You will be on the hook for missed payments as a cosigner if the primary borrower falls behind on their debt payments. If they open the account and fail to make a single payment, you will be responsible for repaying the entire debt. If you're unable to pay, you could get sued by the creditor to recoup the funds owed.\n*   **It's challenging to** **remove yourself as a cosigner****.** If you want to take yourself off the loan or card account, it's up to the lender to decide if the primary borrower can make payments on their own. The only other way to remove yourself as a cosigner is for the primary borrower to refinance or pay off the loan. If it's a mortgage loan, you could get released once the borrower sells the property and the loan is paid in full. For other loans, read the fine print to determine the terms under which you can be released as a cosigner.\n*   **You may get turned down if you apply for other credit products in the future.** If you cosign a loan and then need to apply for credit for yourself, the lender may deny you because your current debt levels are too high. This is especially the case if your debt-to-income ratio is high and you're seeking a mortgage. END