What You Need to Know When Co-signing a Loan

10803730_sIn many regards, co-signing a loan is a lot like actually being the main signer of that debt obligation. There are some subtle distinctions, but suffice it to say that deciding to be a co-signer is nothing to arrive at flippantly.

Co-signing a loan for a specific item such as a car or a house is actually in many ways safer for you as the co-signer than it would be for to you cosign for a credit card. Most times it’s a family member that is considering the role of co-applicant to a credit card, and usually not a whole lot of due diligence is spent making the decision. There are three main points that have to be understood before you even consider stepping up to the plate as a potential cosigner to a credit card for somebody else.

  1. The debt falls back on you if the other party cannot pay.
  2. In addition to the debt itself, you will also be responsible for any fees and collection costs, should the primary applicant fail to pay as agreed in the terms of the contract.
  3. You can be held accountable for debts that could potentially accumulate on the original debt should it go into collection and is not attended to in short time.

With just three common areas of concern on the table, for those considering being a co-signer for another person on a credit card, you can begin to quickly see just how risky a proposition it really can be to get financially entwined with somebody else in this type of way. Even if the person in question is a spouse, parent or child, the decision definitely warrants careful consideration and deliberation before becoming final. Once the ink dries on your signature, any financial implications that follow from that moment can’t be reversed. Think longer on this decision and you may potentially save yourself thousands or more in the long-run.

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Niiwin, LLC, d/b/a Lendgreen (“Lendgreen”), is a wholly owned subsidiary of LDF Holdings, LLC, a wholly owned subsidiary of the Lac du Flambeau Business Development Corporation, a wholly owned and operated economic arm and instrumentality of the Lac du Flambeau Band of Lake Superior Chippewa Indians (“Tribe”), a federally recognized Indian tribe. Lendgreen is organized and in good standing under the laws of the Tribe. Lendgreen is a duly licensed Financial Services Licensee of the Lac du Flambeau Tribal Financial Services Regulatory Authority, an independent regulatory body of the Tribe.

All loan application decisions are made at Lendgreen’s office located at 597 Peace Pipe Road, 2nd Floor, Lac du Flambeau, Wisconsin 54538 on the Tribe’s reservation. If your loan application is approved by Lendgreen, your loan will be governed by Tribal law, applicable federal law, and the terms and conditions of your loan agreement.

This is an expensive form of borrowing. Lendgreen loans are designed to assist you in meeting your short term borrowing needs and are not intended to be a long term financial solution. The Annual Percentage Rate (“APR”) as applied to your loan will range from 720% to 795% depending on your payment schedule, pay frequency, loan term, and the amount of your loan. Late payments and non-payment may result in additional fees and collection activities as described in your loan agreement and as allowed by Tribal and applicable federal law. Lendgreen does not lend to residents of AR, GA, MD, MN, NY, PA, VA, WV, WI or to members of the military or their dependents.

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