The risks of co-signing a loan?

Many people who have poor credit ratings often seek others with better credit ratings to cosign their loans. By getting a cosigner, the borrower increases his or her chance of securing a loan.

From a creditor’s perspective, a cosigned loan is less risky because the creditor can collect from more than one person if the loan is not repaid. However, from the cosigner’s perspective, cosigning a loan may expose them to unnecessary risk.

If you have questions about negotiating your debt, contact the Birmingham debt negotiation lawyer Paula Greenway at (205) 324-4000.

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