Risks of Cosigning a Car Loan

1. Three out of four co-signed loans with finance companies wind up being paid by the cosigner.
2. A cosigner can be found responsible for any late charges and penalties, as well as legal fees that are connected to missed payments.
3. When a debtor defaults, the lender may also inform the credit bureaus, which will negatively impact the cosigner's credit score.

Before you cosign read this: Risks of Cosigning a Car Loan