ACCC Explains What Consumers Need to Know about Cosigning a Loan


Although it’s tempting to offer assistance in these situations, it’s important that consumers understand the financial realities and risks of cosigning a loan.

When a consumer cosigns a loan, they are being asked to assume a risk that the professional lender won’t take on alone – due to the fact that the borrower can’t meet traditional lending criteria. In an attempt to educate consumers, national nonprofit American Consumer Credit Counseling has created a list of things to consider before cosigning a loan.

“Despite the risks, there are scenarios where a person may want to cosign a loan – such as to help a child or a friend in need,” said Steve…



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