Originally Posted by jollystomper
Run away screaming into the night from any thought of co-signing this loan.
Very funny... and sound advice, to boot!
Originally Posted by Aerides
Co-signing isn't even as good a risk as a gift - a gift I know I'm at zero. A co-sign means I could have credit damage before I know what's happening. Can't write a check to make that go away.
Yes, I've read several articles that mention credit damage as a huge risk to anyone co-signing a loan. I think it could be mitigated by keeping very careful track of the loan repayments and making sure they were always paid on time, but... do I really want to sign up for an ongoing hassle like that? One article I read said something like "The thing about being a co-signer is, the loan is effectively yours. You're taking on most of the risk while the principle borrower is receiving all the benefits."
The more I read about this, and the more feedback I get from you wonderful folks, the less I like the idea. I'm definitely not co-signing any loans for these people, regardless of how I feel about them personally or how much I'd like to see their business succeed.
Thanks again for all the great comments and advice!