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Co-signing a loan

Discussion in 'Money Talk$' started by Salty, Aug 20, 2012.

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Would I consider co-signing a $5,000 loan for:

  1. My Spouse

    7 vote(s)
    50.0%

  2. My Parents

    4 vote(s)
    28.6%

  3. My Children

    5 vote(s)
    35.7%

  4. My Siblings

    1 vote(s)
    7.1%

  5. Other close relatives

    0 vote(s)
    0.0%

  6. My pastor

    0 vote(s)
    0.0%

  7. A close friend

    1 vote(s)
    7.1%

  8. A casual friend

    0 vote(s)
    0.0%

  9. A Stranger

    0 vote(s)
    0.0%

  10. Other answer

    6 vote(s)
    42.9%
Multiple votes are allowed.
Top Posters
  1. Salty

    Salty 20,000 Posts Club
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    Suppose you were asked to co-sign a loan of $5,000. Would you consider doing so? Why or why not.

    Would it make a difference:
    1. your relationship with the individual
    2. If the loan was secure
    3. The purpose of the loan
    4. other
     
    #1 Salty, Aug 20, 2012
    Last edited by a moderator: Aug 20, 2012
  2. menageriekeeper

    menageriekeeper Active Member

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    The same person(s) I'd consider loaning $5000: NO ONE!

    Or rather, no one to whom I wouldn't feel bad about the loan turning into a gift.
     
    #2 menageriekeeper, Aug 20, 2012
  3. Salty

    Salty 20,000 Posts Club
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    Why would you not co-sign for your husband?
    Why would you not co-sign for your kids?
     
    #3 Salty, Aug 20, 2012
  4. menageriekeeper

    menageriekeeper Active Member

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    Spouses aren't considered as co-signers but joint loan holders. There is a difference. And the last time my late husband and I refied our house they wouldn't allow me to sign the loan as I didn't work a full time job. I had been on the original mortgage. We didn't like it, but went on and now I get to deal with it as part of probating his estate. (even though the house was originally bought jointly with the right of survivorship)

    No, the only loan I would co-sign for my children are student loans and even then I do so knowing that *I* am liable for the repayment and said loan may indeed become a gift.

    No one ever co-signed a loan for me. In the long run I believe the lack of a cosigner made us more responsible and more careful about what we borrowed and how we took care of our credit than we would have been if we'd had mommy and daddy to fall back on when we got tired of paying payments.
     
    #4 menageriekeeper, Aug 20, 2012
  5. billwald

    billwald New Member

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    We give the kids what we can but would never cosign for anyone.

    When my 2 daughter changed jobs we put up the 20% down on a condo as a co-owner. I would not have minded owning it for myself. It is now paid off and 100% in her name.
     
    #5 billwald, Aug 20, 2012
  6. RLBosley

    RLBosley Active Member

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    Proverbs 17:18 "A man void of understanding shaketh hands in pledge, and becometh surety in the presence of his friend."

    or, the more blunt CEV...

    It’s stupid to guarantee someone else’s loan.
     
    #6 RLBosley, Sep 19, 2012
  7. mont974x4

    mont974x4 New Member

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    No one.



    As to the spouse, if there is a need for a loan they should be co-borrower. The only example I can think of that is acceptable is for a mortgage.


    Debt is bad.
     
    #7 mont974x4, Sep 19, 2012
  8. SaggyWoman

    SaggyWoman Active Member

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    How about "No ONe".
     
    #8 SaggyWoman, Sep 22, 2012
  9. billwald

    billwald New Member

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    By the way, loaning your kids money for their schooling is MUCH different than co-signing a student loan. Student loans come under different tax rules A person would be much better off to get a second mortgage on a house and loan the cash to the kid.
     
    #9 billwald, Sep 27, 2012
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