Cosigner and Credit Repair

Bad credit and consumer credit repair can be an overwhelming load to bare. While the consumer must be focused on credit repair, it is next to impossible to build a solid credit history if your bad credit exempts you from being able to obtain a line of credit, like a loan for a car, a credit card or even being able to qualify for an apartment lease. It’s probably no surprise that a solid credit history is key to improving your credit score. A reasonable alternative is to have a cosigner. A cosigner is a person, usually the borrower’s relative or close friend, who has good credit and is willing to underwrite a loan to enable the borrower to obtain the loan or line of credit. There is no small amount of risk and liability for the cosigner because if the borrower defaults or doesn’t make timely payments, the cosigner is responsible for covering the entire debt. Long-term, it is vitally important for the borrower who has poor credit to develop a sound strategy to improve their credit. Borrowers who require a cosigner may consider hiring a credit repair consultant to help develop such a plan

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This entry was posted in Building Credit, Co-signing, Credit Cards, Credit Repair Services and tagged . Bookmark the permalink.

3 Responses to Cosigner and Credit Repair

  1. Pingback: Tweets that mention Cosigner and Credit Repair | Vitesse -- Topsy.com

  2. Isah says:

    What are the legal risks to the co-signer, if any?

  3. ArchAngel Michael says:

    I think that’s the problem when you have bad credit. You can’t get any line of credit, which you need in order to improve your credit score. Thanks for suggesting an alternative! If only I could get one of my relatives to co-sign a loan for me!

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